Renting Residential Property

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Download PDF 		Are you considering renting a residential property?

The aim of the Bright Property website is for the landlord and tenant to deal directly with each other, so we have produced this Renting Residential Property Guide to help you.

STEP 1 – WHAT CAN YOU AFFORD?

Before you start looking for property it is a good idea to work out how much you can afford to spend and establish what the costs of renting are:
  • Rent
    Generally residential property’s rent is paid weekly or monthly in advance. It may be All Inclusive – rent, utilities and service charge costs.
  • Council Tax
    It is usual for the Tenant to be responsible for this. The Landlord should be able to provide details of this or alternatively the local council.
  • Utility bills
    Gas, electricity, water. The cost of theses items will be dependant on your use.
  • Service Charges
    Generally this is payable in properties with communal areas i.e. blocks of flats. It may be included in the rent or charged separately.
  • Contents Insurance
    Generally the Landlord will insure the building, but it is the Tenant’s responsibility to insure the contents.

STEP 2 - CHOOSING YOUR PROPERTY

It is worth drawing up a list of the things that you want from the property. Though bear in mind finding the perfect property is not always possible and compromises may need to be made.

Things that you may need to consider are:-

  • Location Location Location! _ the key phase is property searching.
  • Are you intending to live on your own, with your family, friends or people you don’t know.
  • Type of accommodation – Lodgings, Bed-sit, Studio, House Share, Private rented.
  • Local Area , Amenities and Crime Statistic – schools, shops, parks http://www.upmystreet.com/ or http://www.homecheck.co.uk/.
  • Infrastructure – roads, rail and public transport links, broadband
  • What the Council Tax Band is.
  • Whether the property is let Furnished or Unfurnished
Finding rental accommodation is generally quicker than buying a property. Landlords tend to market the property 4 – 6 weeks beforehand; it is available so bear this in mind when you are looking.

Where to look:

  • Register with Bright Property under the Wanted Ad.
  • Search Bright Property properties available.

Viewings tips:

  • Where possible try and arrange viewings as soon as the property comes on the market.
  • Take the property details along with you and a contact number in case you are delayed.
  • Make notes – you may not remember all aspects of the property if you are viewing several. Taking photographs can be a good record of the property, but ask the owners permission beforehand.
  • View the property a number of times if you need to. At different times of the day, weekdays, weekends etc so that you get a feel for it.
  • Look around the area.
  • If you are going on your own make sure somebody knows where you are.
  • Ask what is included with the property, a breakdown of the utility costs and council tax.

You may wish to ask how many people have viewed the property, how long has it been on the market, how long does the Landlord want to rent it and why is he renting it. It may be useful when it comes to negotiating the rent.

STEP 3 – RENTING A PROPERTY – THE TERMS

It is important that the letting is documented, setting out the rent and both parties responsibilities. The most common Tenancy Agreement used is an Assured Shorthold Tenancy. This type of tenancy offers the most flexibility to both Landlord and Tenant and has straightforward notice procedures for bringing the tenancy to an end. Should a Tenant fail to vacate there is a special Accelerated Possession court procedure.

“Joint and Several” Responsibility

If there is going to be one (adult) or more persons living in the property, the tenancy should state “jointly and severally” responsible. Therefore each Tenant is equally responsible and liable for the payment of all rents, all liabilities falling upon the Tenants during the tenancy and any breach of the Agreement.

Other tenancies

There are a many ready made tenancy available to purchase if you do not want a solicitor to draft one.

There are other tenancies such as the “Assured” tenancy. This gives Landlords very limited circumstances in which possession can be obtained and the Tenant may be able to obtain long term security tenure

BOTH PARTIES MUST SIGN THE AGREEMENT IN THE PRESENCE OF A WITNESS.

Every agreement is different, but this sets out the basic rights and responsibilities that should be included in your agreement.

Tenant’s Responsibilities

  • To pay the rent on time
  • Pay all bills that you are responsible for i.e. electricity, gas, council tax, etc)
  • To repair any damages you cause
  • Keep the property clean and tidy and return the property in same state as you rented it at the beginning of the tenancy.
  • Keep the property secure
  • It is advisable to insure your own contents.
  • To occupy the premises as a home, not a business

Tenant’s Rights

  • Quiet enjoyment
    The Landlord is not entitled to enter the property without notice (except in emergency)

Landlord’s Responsibility

  • Repairs to the structure and exterior of the property,
  • Heating and hot water installations, basins, sinks, baths and other sanitary installations
  • All gas appliances and systems must be safe and regularly maintained. A Landlords Gas Safety Certificate needs to be obtained from a Corgi Registered Installer and renewed
  • All furniture supplied with the letting has to comply with the Fire Safety Regulations. All furnishings that are covered by the regulations should display a permanent label stating they are Fire-resistant.
  • Ensure that the property is fit for habitation
  • Repairing and keeping in working order the room and water heating equipment
  • All electrical appliances should be serviced, in good working order and the supply safe. It is advisable to supply Instructions for the use of all electrical items. A Periodic Inspection Report for an Electrical Installation by an approved contractor is strongly recommended.
  • All properties built since June 1992 must be fitted with mains operated linked smoke alarms on each floor. Older properties are not covered by the regulations, but it is strongly recommended that smoke alarms are installed in all let properties and regularly checked to make sure they are in working.

Landlord’s Rights

  • To enter the property in accordance with the terms of the tenancy
  • To seek possession if the Tenant is in breach of the agreement.
  • To receive payment of rent.

STEP 4 – NEGOTIATION

Tips to help with negotiation:-


  • How many people have viewed the property?
  • How long has it been on the market?
  • How long does the landlord want to rent it?

You have identified the property, negotiated the rent and want to secure the letting. You may consider a holding deposit, although it is not a legal guarantee, it may secure your letting. The Holding Deposit may very in amount and in most cases it will be off set against the first months rent. Though if you pull out it is likely that it may not be refundable.

References

In most cases a Landlord will take up a prospective Tenant’s reference. Therefore be prepared to provide the following:

  • Employers’ Details - your title, salary, payroll number, a contact at work, and name of previous employer
  • Bank Details - bank name, address, your account number, sort code, account name
  • Personal References – People who have known you for a number of years (excluding family members)
  • Previous Landlords – Details of where you have lived for the last 3 years.
  • Checks with Credit reference agency may also be carried out.
  • Checks on County Court Judgments or Bankruptcy.
  • It is not unknown for administration charges to be made in respect of obtaining references which may be passed on to the prospective Tenant.

If you are not able to provide sufficient referees or fail you the reference checks you be asked to provide a guarantor. This would be some who is willing to accept the financial and legal risk of you liaising in rented accommodation if you fail to perform the obligations of your tenancy, i.e. – paying the rent.

Tenancy Deposit

It is usual for a deposit of between one and two months’ rent to be held during the tenancy. The purpose of the deposit is if the Tenant does not comply with the obligations of the tenancy agreement such as keeping the premises clean, paying the rent, the Landlord can use the money to remedy the breach. The Tenancy Agreement should set out:
  • who is to hold the deposit (e.g. Agent or Landlord)
  • whether interest is to be paid or not
  • what the deposit can be allocated for
  • the end of tenancy procedures and timescales for its refund

With effect from the 6th April 2007 all deposits, up to the level of £25,000, taken by landlords for Assured Shorthold Tenancies in England and Wales must be protected by a tenancy deposit protection scheme. Tenancy Deposit Protection has been introduced to ensure good practice in deposit handling, so that when a tenant pays a deposit, and is entitled to get it back, they can be assured that this will happen. It will also encourage tenants and landlords to have in place, from the outset, clear agreement on the condition of the property through the use of inventories.

The landlord not the tenant – will have the option to choose whether to safeguard the deposit in the custodial or insurance-based scheme. A landlord will have 14 days to safeguard a deposit from the day he receives it. The landlord will have to provide the tenant prescribed information about the scheme safeguarding the deposit within 14 days. To avoid disputes having to go to the courts, both schemes will be supported by an Alternative Dispute Resolution (ADR) service, although the use of this will not be compulsory. When the landlord and tenant agree how the deposit should be returned, in full or in part, it must be paid back within 10 days.

The Government awarded contracts to three companies to run the tenancy deposit schemes:



Landlords that fail to use the scheme could be faced with a fine of three times the deposit if the tenant takes the matter to court or the landlord is unable to use ‘notice only’ possession procedure for regain possession of the property if there is a breach.

For further information go to http://www.tenantdepositscheme.co.uk/


Inventory

If you are renting a residential property it is not unusual for the Landlord to provide and inventory listing all the items included with the letting. It may even record the condition of the property and fixture and fittings either with photographs or a schedule of condition. By having a full inventory this will hopefully eliminate any misunderstandings at the end of the tenancy. Both parties should agree and sign the inventory.

STEP 5 – END OF THE TENANCY

  • At the end of your tenancy you can either renew the tenancy or move out.
  • If you decide to remain in the property you will need to confirm to the Landlord in writing 2 months before the expiry of your Tenancy Agreement. If either party does not wish the Tenancy Agreement to continue arrangements will need to be made to move out and the notice procedure followed as specified in your Tenancy Agreement.
  • It is advisable to leave the premises and furniture in the same condition or better if you have carried out work with the Landlord’s permission. Ensure that all items on the inventory are accounted for; all keys returned and that all rent payments and other bills are up to date to ensure that your rent deposit is returned.

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