Tenants Costs explained….
So as to be transparent, and to make sure that you can make an informed choice, please find below a summary of tenants costs that you may incur before and throughout your tenancy.
Stuarts Property Services Ltd t/a Stuarts Homes, established since 1908 and specialise in the letting and management industry. So as to be transparent, and to ensure that you can make an informed choice, please find below a summary of charges that you may incur throughout your tenancy.
In accordance with Tenant Fees Act 2019 the only charges that you will be asked to pay are as follows: –
- The rent
- A refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000 or six weeks’ rent where the total annual rent is £50,000 or above.
- A refundable holding deposit (to reserve a property) capped at no more than one week’s rent
- Payment to change the tenancy when requested by the tenant capped at £50, or reasonable costs incurred if higher
- Payments associated with early termination of the tenancy, when requested by the tenant
- Payments in respect of utilities, communication services, TV licence and council tax
- A default fee for late payment of rent
- Replacement costs of a lost key/security device
Rent is due in advance as per the tenancy agreement. Should you wish to change the date in which you wish to pay rent then the apportioned rent must be paid to ensure that your payments remain in advance.
Tenancy deposit monies paid are protected with The Deposit Protection Service (DPS) as per legislation. Please ensure you keep any paperwork from them in a safe place for the end of your tenancy. This applies to individuals only – Company Let deposits are not required to be protected in the scheme however it is important for companies to note that Stuarts Property Services Ltd are members of NALS, Safe Agent and The Property Ombudsman of which strict client accounting rules apply and are adhered to.
Holding Fee: – This is the equivalent to one weeks’ rent rounded down to the nearest £5 (FOR EXAMPLE:- if the rent is £650pcm then the holding fee would be £150.00) This fee is refunded once the tenancy agreement has been entered into OR if you prefer (and this must be instructed in writing) you can offset the holding fee against the first months’ rent OR deposit. Once the holding fee is received, we will take the property off the market and begin the referencing process. If you fail the Right to Rent checks or are found to give false information, or if you fail to provide information before the deadline date agreed, then this holding fee can be forfeited.
Lost key/security device – You will be expected to pay for replacement keys and security devices (this includes the lock if changed and any security access fobs) at cost.
Default fee for late payment. Late rent is not tolerated. We strongly advise you to ensure that you have sufficient funds to ensure rent is paid on time. Interest will be charged at 3% above the Bank of England interest rate in the event of any late payments.
Mid -tenancy changes to the current tenancy agreement (e.g change of occupants, replacement tenant/someone moving out etc, to include a pet) will incur a fee of £50 inclusive of VAT or reasonable costs if higher) If new persons are joining the tenancy then they will be subjected to referencing as usual.
Early Termination/Release Fee (sometimes called surrender) – If you require Early Release from your fixed term tenancy, and ONLY with landlord permission in writing, you will be expected to pay one months’ rent as the early release fee to cover the unexpected letting fee to the landlord, plus any other costs that the landlord will incur as a result of your early release, plus rent up to the occupation date of new tenants as well as your liability to the utility companies – full early release procedures can be obtained if you wish to exercise this procedure and early release is only with landlord permission and subject to conditions of release. The early termination fee will not exceed the financial loss that a landlord has suffered in permitting or reasonable costs that have been incurred b the agent in arranging for the tenant to leave early. This usually means that the landlord/agent will not charge any more than the rent they would have received before the tenancy reaches its end.
Utilities, communication services, TV licence and council tax – It is your responsibility as tenant to ensure that you choose your utility tariff and set up payment plans with all utility companies, communication services, TV licence and council tax from your tenancy agreement date. It is also your responsibility to inform them when you move out providing them with a forwarding address.
There is an annual review on rental amounts of 3% to 5% approx. This is a clause within your tenancy agreement. Full details are given in the form of a Section 13 notice. (3). The landlord or agent will write to you near the anniversary date of your tenancy.
Renewal – We will write to you when you are nearing the end of your initial fixed period to enquire if you wish to renew the tenancy. There are no fees associated with renewing your tenancy. There are 3 options:-
1) Give one months’ notice to quit in writing
2) Continue the tenancy on a periodic (month to month) basis, giving you the flexibility to move on if you so wish (one months’ notice in writing required). Should the landlord wish to gain possession back, they must give two months’ notice in writing.
3) Renew the tenancy agreement for a further fixed term (thus ensuring the security of knowing you are in the property for another 6 or 12 months fixed term (with LL permission).
PLEASE NOTE:-All payments should be made via bank transfer in accordance with your tenancy agreement. Occasional payments can be made via telephone or in the office. We only accept debit cards. We do not accept cash payments or credit card payments.