Guidance Notes for Tenants

Guidance Notes for Prospective Tenants

These notes have been produced to assist you once a suitable property has been located.

They detail actions you should be taking, information you should be providing and certain charges you will incur.

Making an offer


All offers made, received and accepted are subject to contract, vacant possession and satisfactory references.

Preliminary deposit.

A preliminary deposit, usually equivalent to one week’s rent will be required as a show of intent. Full terms of how this deposit is held are available on request and detailed on the receipt that will be provided. In the event you decide not to proceed for whatever reason or where references are unacceptable to the landlord an administrative fee of £300.00 plus VAT (£360.00 inc. of VAT) will be made against the preliminary deposit.

References and identification


References are usually obtained through an independent tenant referencing company at a cost of £62.50 plus VAT (£75.00 inc. of VAT) per person. Each named tenant and any guarantor will, once payment has been received, be e-mailed a link and shall be required to complete an on-line application (or in certain circumstance a form) which should be submitted as soon as possible following acceptance of an offer. In addition, we shall also require a letter from your employer formally confirming the terms of your employment.

If the named tenant is an incorporated company the reference cost is £62.50 plus VAT (£75.00 inc. of VAT). In all cases, satisfactory references must be received prior to the commencement of the tenancy.

In order to proceed with a tenancy through Fitz- Gibbon and to comply with current Money Laundering Legislation you will be required to provide proof of identity and residency; this should include at one item from List A and two items from List B. In addition a copy of your UK Work Permit and/or UK VISA will be required if you are a non EU National.

List A:

Passport; New Style UK Driving License (photo card only); New Style Overseas Driving Licence or European National ID Card; Firearms or Shotgun Licence; Valid Police Warrant Card; Valid Armed Forces ID Card; Polling Card.

List B:

(must be dated within the last 3 months) - Council Tax Bill or Statement; Bank or Building Society Statement; Credit Card Statement; TV License; New Style UK Driving Licence (photo card only); Revenue and Customs Correspondence from any Registered Chartered Accountants.

Costs to Tenants


We do not make any charge to tenants for registration or finding a property, we act for the landlord. However, certain administrative costs are shared between landlord and tenant.

(a) Tenancy agreement/documentation charges. These costs are shared equally between landlord and tenant, each party paying £208.33 plus VAT (£250.00 inc. of VAT). In the event the tenancy is extended or renewed the documentation fee is £100.00 plus VAT (£120.00 inc. of VAT).

(b) Inventory charges. A professional independent inventory clerk will usually be appointed to agree the inventory at commencement and termination of the tenancy. The tenant pays for the 'check-in' and the landlord pays for the 'check-out'. Charges are dependant on the size of the property and whether it is furnished or unfurnished (as an example a one bedroom unfurnished property would cost £70.00 plus VAT (£84.00 including VAT). You will be informed of the charges once your offer has been accepted and the commencement date agreed. In the event you wish to appoint an inventory clerk to exclusively represent you, all related charges will be your responsibility.

(c) Third party references. In the event a reference is required for an historic or current tenant an administrative fee of £25.00 plus VAT (£30.00 inc. of VAT) will be made.

(d) Tenancy Deposit Administration Fee. These costs are shared equally between landlord and tenant each party paying £25.00 plus VAT (£30.00 inc. of VAT) for registration.

Rent / Deposit Payments

Rent is usually payable calendar monthly or 13 weekly in advance and should be made by standing order from one bank account only, direct into our Client Account on the rent due date. Standing order payments usually take some four days to appear as a credit. Therefore, your standing order payment should leave your account four days prior to the rent due date. In the event a rent payment is made by cheque or standing order, which is subsequently dishonoured, we will make an administrative charge of £50.00 plus vat (£60.00 inc. of vat) for each dishonoured payment.

The first payment should include the deposit, usually six weeks rent. This must be received together with the documentation, inventory and tenancy deposit fees prior to the tenancy commencing. Where Fitz-Gibbon holds the deposit we will hold it as Stakeholder in a non-interest bearing designated Client Account. Fitz-Gibbon are members of the Tenancy Deposit Scheme (TDS). We are able to accept payment of the initial monies by the following methods: (a) Direct transfer of funds into our bank (b) Cash (c) Bank draft (d) Personal UK DEBIT card. In the event an International (non-UK including Channel Islands and Isle of Man) or Corporate/Business Debit Card is to be used we shall make a charge of 2% + VAT (2.4% inc VAT) of the amount to be charged. We DO NOT accept any Credit Cards.

Utilities

Throughout the tenancy you will be responsible for all charges relating to gas, electricity, telephone, council tax and water. You will also be responsible for purchasing a television licence for the property. It is essential that you contact the providers of these services to ensure continuation of supply in your name for commencement of the tenancy. It is similarly important to inform the utility provider when your tenancy expires, as these suppliers will not take instructions to terminate a service from a third party. A record of all meter readings at commencement and the expiration of the tenancy are strongly recommended.

Insurance

During your tenancy you will be responsible for ensuring your possessions are adequately insured. It is usual that any insurance the landlord may have will not cover your possessions or accidental damage to the landlord’s contents. We recommend that all tenants have contents insurance cover when renting and can provide you with a quote from Lets-Cover tenant's insurance. The policy is underwritten by AXA Insurance PLC and is specifically designed for those living in rented accommodation. They offer insurance options that protect not only you and your possessions but you landlords fixtures and fittings, if damage is caused to the rental property in which you live. Lets-Cover are authorised and regulated by the Financial Conduct Authority (please note for insurance policies that terms, conditions, limitations, exclusions and eligibility criteria apply).

Tenancy Agreement

This is the legal document you sign. It must be returned to our office prior to the tenancy commencing. The agreement must be signed by all parties to the tenancy or by a pre-confirmed authorised signatory in the event a company is the tenant. Each page should be initialled and the signatures witnessed by an independent party. Employees of Fitz-Gibbon are able to witness such signatures. In the event the tenancy documentation is not returned promptly we reserve the right to continue marketing the property.

Stamp Duty Land Tax


On commencement of the tenancy you will be sent the original tenancy agreement signed by the landlord. An obligation exists to have this document stamped by the Inland Revenue. This is applicable where the tenancy figure exceeds £125,000 for the full term of the tenancy including any extensions or periods of holding over. Stamp Duty Information can be found on the Inland Revenue website: www.hmrc.gov.uk or telephoning 0845 60 30 135.

Finally...


These guidance notes are intended purely to assist you and do not contain all the conditions of your proposed tenancy nor do they contain your obligations, which will be detailed in the tenancy agreement and other related documentation. Fitz-Gibbon is an ARLA licensed letting agent and therefore has Client Money Protection (CMP) in place. Fitz-Gibbon is a member of an independent redress scheme provided by The Property Ombudsman (TPO).

MAY 2015

Contents Insurance for Tenants

Fitz-Gibbon recommend that all Tenants take out contents insurance cover for both their own and the Landlord's possessions. Find out more >