Looking Inspecting a property
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Is your property and landlord licensed? 79 Gas safety
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Neighbours
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Negotiating
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Contracts
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Checking ownership of a property
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Money matters
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Tenancy Deposit Protection
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Agency charges
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Inspecting a property Many problems that students run into with their housing are because they did not check the property for potential defects before they signed the tenancy agreement. This section is designed to alert you to checking for the most obvious potential problems. Most students in London will find their housing over the summer or during August/September. It is important that you consider what the property will be like when it is cold, dark, and raining. How insulated is the property from the elements? In addition, student households form very attractive targets for burglars (lots of computers, TVs, tablets etc.) so you will also need to think carefully about the security of the property. It may be that a careful inspection will reveal some structural problems that are too major for you to actually consider the property. For example, if the property looks like the roof is about to collapse and hasn’t been maintained for the last 10–15 years, then you should rule it out. Other problems, such as not enough furniture or inadequate cupboard space, can be negotiated with the landlord. (See pages 83-84 for section on Negotiating). 74
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Top student tips ““Descriptions in adverts are often heavily exaggerated; if a room is described as a double, check this is the case on the phone (a reasonable double should be around 3.5m x 3.5m – any smaller and you will not be able to get a desk in it). This will save you a lot of time.” “If you are flat hunting try and combine looking at a few on the same day in a similar part of London, i.e. look at a few in East London in the morning and a few in the South in the afternoon. It takes a lot longer to travel around than you might expect and you don’t want to waste a whole day.”
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Property checklist External features ❑❑ Broken guttering, missing slates on roof? ❑❑ Rotten timber (especially the window frames and doors)? ❑❑ How draught-proof are the windows (i.e. are they ill-fitting sash windows and can you feel a breeze through them)? ❑❑ Adequate storage space for rubbish? ❑❑ If there is a back garden, is the back door secure and lockable? ❑❑ Doors – main doors have secure locking facility (not ordinary Yale type, and not locks which need a key to open the door from the inside)? Internal Features ❑❑ Are there enough facilities being provided for the number of people who will be sharing the house? (i.e. how many cupboards are there for food, is there enough fridge space, how many toilets are there? etc.) ❑❑ Heating – is there sufficient and what type is it (gas fires, gas central, electric)? Electric heating is more expensive than gas. ❑❑ Bathroom – if there is no natural ventilation, there should be a working ventilation fan (without one you could end up with mould growth due to condensation dampness). 76
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❑❑ Bath/shower sealant – clean and undamaged sealant around bath or shower? ❑❑ Pests – are there mice droppings anywhere or can you see mousetraps or poison bait anywhere – especially in ground floor kitchen cupboards? ❑❑ What furniture belongs to the accommodation and what belongs to the tenants (i.e. what will be there when you move in)? ❑❑ Mould and damp – is there any (damp marks – check top floor ceilings, ceiling under the bathroom, mould in the bathroom). Is there a musty smell? ❑❑ If you are in a flat, what is the sound insulation like between your flat and those of your neighbours? ❑❑ Partition walls – are they so thin you would hear everything from the room next door?
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Safety Features ❑❑ Escape – would it be easy to get out in a fire? Is there either a fire alarm or at least a smoke detector? The London Fire Brigade carry out free home fire safety checks and will fit a free smoke alarm if necessary. See here for more details: www.fireservice.co.uk/safety/hfsc ❑❑ Electric fittings – no loose wires, plugs coming off walls, burn marks on/around plugs? ❑❑ Gas safety – carbon monoxide kills, is there a valid gas safety certificate by a Gas Safe registered engineer? Does the Gas Certificate correspond with the gas appliances in the property? Carbon Monoxide detectors are also a good idea. ❑❑ Second-hand furniture is often the ‘norm’ in rented accommodation. Some of the soft furniture may be a fire hazard. Unless it can be proved this furniture was purchased before 1952, most of it should have the manufacturer’s label on it saying it meets the requirements of the Furniture and Fire Regulations 1988.
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Is your property and landlord licensed? Larger properties may need to be licensed by the local authority in order to ensure that they meet minimum safety standards. If your property is three or more storeys high and has five or more occupants then your landlord will need to have a HMO (Houses in Multiple Occupation) licence. How do the minimum standards affect me? These standards will mainly apply to the physical safety of the occupants’ e.g. how easy will it be for you to get out of the property in the event of fire. The Local Authority will also look at whether the property is suitable for the number of people.automatically disqualify a landlord from gaining a licence). Licensing will be the responsibility of the Local Authority and they will be able to provide guidance on exactly how the legislation is being implemented within their borough. Local Authorities have discretion to impose their own standards, which may go beyond the legal minimum requirements.
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Applying for a licence? In most cases the Local Authority will first require that the landlord, or whoever is managing the property, apply for a licence. The licence will last for up to 5 years and the landlord will be required to pay a fee. The Local Authority will also carry out an inspection of the property to ensure that it meets the necessary standards.
Other types of licensing There are two other types of licensing which a Local Authority has the discretion to introduce; additional and selective licencing. Additional licensing is the licensing of other types of Houses in Multiple Occupation (HMOs.) These are normally properties which are occupied by 3 or more non-related occupiers who share some basic facilities or amenities, such as a kitchen or bathroom. Selective licensing does not specifically relate to HMOs, but will require that all privately rented properties within a specified area must be licenced
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Penalties for landlords It is a criminal offence to control or manage a house which ought to be licensed, but is not licensed, without having a reasonable excuse for so doing so. The maximum fine that can be imposed is up to ÂŁ20,000. A landlord can also face fines of up to ÂŁ5,000 and have their licence removed if they do not comply with the licence conditions.
Further information can be sought from your local authority, many of whom will have a searchable online database of licensed HMOs.
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Gas safety Unsafe gas appliances produce a highly poisonous gas called Carbon monoxide. In the last year 14 people have died from CO poisoning and 234 have suffered health problems. Your landlord must arrange for a Gas Safe registered engineer to carry out a safety check every year on all gas appliances in the property. By law, all gas appliances must be checked annually, e.g. even if there is no gas heating in a room let to a student, the fact that there is a gas boiler in the property still requires a landlord to provide a Gas Safety Certificate. You should get a copy of the safety certificate before you move in or within 28 days of the safety check, if you don’t have it, ask to see it.
Never allow someone who is not qualified to work on a gas appliance in your home. 82
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Recent high-profile prosecutions of landlords have highlighted the issue of tenant safety. Prosecution can result in the landlord facing a maximum penalty of £5,000 for each offence. If the case is then referred to the Crown Court the maximum penalty may be an unlimited fine and the possibility of imprisonment. Any work on a gas appliance must be carried out by a Gas Safe registered engineer. All registered engineers carry a Gas Safe ID card as shown on the left. Make sure you check both sides of the card to verify it’s valid and that the engineer is qualified to do the work.
Neighbours
Wherever you live in London, you are going to have neighbours. It is important that you ask the landlord/ agent about them.
In many cases they will end up as your friends. However, they could also be a nightmare. It could be that every time you put on music or the TV, you will have someone knocking on your door complaining about the noise. Alternatively, you could find that your neighbour is playing their music so loud that both your walls and teeth will rattle.
Attempting to predict what will happen to the rental market in 2014-2015 is an almost impossible task. At the time of going to press (July 2014) rents appeared to be static in central London and slightly on the rise out of the centre. However, there are so many factors involved that this could all change. This means that you need to make sure that you look at a number of properties before coming to a decision. Only by testing the market will you know whether you are paying a fair price.
Negotiating
You should also be prepared to bargain and indeed walk away from a deal if you do not feel entirely comfortable with it. London Rents - There is a useful guide to average rents on the Mayor of London’s website: www.london.gov.uk/rents Looking
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So before you move in to a property, is it really a reasonable rent? And think about whether it has everything you are looking for. For instance, if there are five of you and there is only one fridge/ freezer, (space permitting) why not ask for another? If there is no washing machine, or if you want a double bed, why not ask?
Always try to see if a landlord will offer you something extra
As with any arrangement of this nature however, always get promises in writing. If your landlord or agent genuinely intends to provide you with something that is not in the property at the time of viewing, they will not mind guaranteeing to do so in writing. The following is an example of an addendum to a contract, which can secure promises made.
Addendum to contract The attached contract for the property at 10 Walford Heights, London e20 (address of property) dated 20th September 2012, is being signed on the understanding that the landlord will provide the following items to the property and the following schedule of work will be carried out, by the landlord, prior to the moving in date 28th September 2012. Signed (Landlord) 84
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Items to be provided: Washing machine Vacuum cleaner Desks to each bedroom Schedule of Work Thorough cleaning of kitchen Showerhead to be repaired Bath sealant to be repaired
References A good way to improve your bargaining position with landlords is to persuade them that you are going to be an excellent tenant. The best way to do this is to get references from previous landlords. If you do not have these, for example you are a first year student and have lived in halls during your first year, try to get the nearest thing you can. Most halls will provide a reference to state that you haven’t damaged your room and have paid your rent (provided this is true, of course). You may be asked to get your parents, another family member, friend of the family or guardian to act as guarantors for your rent. This means that they state that they are prepared to pay your rent, if you don’t pay it. Usually landlords or agents require that the guarantor be based in the UK.
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Guarantors Guarantor agreements give the landlord a measure of financial security which may persuade them to take you in preference to another tenant without a guarantor. As with all legal documents, it is a good idea to get the guarantor agreement checked with an advisor before it is signed. Also the guarantee should state that it will only last for a set period of time and should set a limit on how much the guarantor can be asked to pay. Landlords want to know that you’re a good bet!
If you are not able to offer a UK-based guarantor, it may be that you will be asked to pay up to six months rent in advance. If this is the case, you will have less bargaining power if something goes wrong with the flat and you are trying to get the landlord to carry out repairs. You would also be vulnerable in the, albeit rare, event that a property is re-possessed due to a landlord defaulting on their mortgage payments (see page 123 for more details). As with all negotiating, there is no right answer as to how much extra rent you should pay, if any at all. It depends on how popular the property is and who you are in competition with to secure it.
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Contracts The following are the most common forms of letting contracts although there are some others. This Guide is not intended to make you a legal expert and you should always seek advice before making any assumptions about the agreement that you are going to or have already signed.
A joint tenancy binds the tenants together
Never sign a contract with which you do not agree or which you do not understand. Always, get it checked first. Your University Accommodation Office should be able to advise you about where you can do this. If a group of you are renting a property together and you are all named on the contract, it is likely that you will have what is called a joint tenancy. A joint tenancy means that you are each liable for the whole rent of the premises and for any other obligations under the tenancy. Example There is a group of four tenants on a joint tenancy for 9 months and one tenant decides to leave in the sixth month because they are fed up that no one else does any cleaning. Each joint tenant was paying an equal share of the rent. In this case, the landlord is entitled to collect the shortfall in rent from any or all of the remaining tenants. These remaining tenants may subsequently be able to recover this money from the missing tenant. Looking
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A bank Deed of Assignment can de downloaded from our website www. studenthousing.lon. ac.uk A Downloads
Individual Tenancies
In the above circumstances, the best solution is for the leaving tenant to find someone to replace them. If they are able to do this, everyone (remaining tenants, outgoing tenant, replacement tenant and landlord) should then sign a Deed of Assignment document. This will allow the existing contract to continue under the same terms and conditions as before, but just with different people. The leaving tenant will be completely released from the contract.
If a group of you are living in a property together, but you want to avoid the burdens of a joint tenancy, you could try and negotiate individual tenancies of your rooms. This means that you are only liable for the rent for your room but have access to all the joint facilities of the property (i.e. bathroom, kitchen etc). The disadvantages of this agreement are that: 1 If someone leaves, you do not have any say over who the outgoing tenant or the landlord finds to replace them. 2 Because you only have a tenancy of your room, the landlord can have relatively free access to the common parts of the property (i.e. bathroom, kitchen etc). 3 You may have to pay a separate licence fee for each TV in the house.
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Living with a resident landlord If you share accommodation with your landlord as a lodger in their home you have fewer rights than other people who live in the private rented sector particularly with regards to the notice the landlord has to give you if they wish you to leave. You may have signed an agreement with your landlord which specifies how much notice your landlord must give you. If there is no agreement, however, your landlord is required to give you reasonable notice which can be verbal. After that date your landlord does not have to obtain a court order to evict you. There are no exact rules about what is “reasonable notice” but some relevant factors are: ■■ The length of time you have been living there ■■ The length of time between rent payments ■■ The reason why the landlord wishes you to leave
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Break clauses Before you sign a tenancy agreement you may want to consider negotiating a break clause with your landlord or agent, as this will enable you to end your tenancy before the end of the fixed term. Often, landlords and agencies will request you to sign a 12 month tenancy agreement. However, most academic terms at universities and colleges end in June and therefore you may be signing an agreement for longer than you require! Negotiating a break clause could allow you to end your agreement early. For example, you have entered into a tenancy agreement in September. The term is fixed until September the following year. You want to leave in June (9 months) after your exams have finished. Example of clause The Landlord or Tenant may give 2 months prior written notice at any time to determine this agreement provided that such notice does not expire sooner than nine months from the start of the tenancy.
Even an escape artist can’t get out of a contract without a break clause 90
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It is worth noting that although you will be able to end your tenancy, the landlord also has the right to terminate your agreement after nine months. So if you want to remain in the property for the full length of the tenancy, you may not want to negotiate any break clause at all.
Checking ownership of a property It is a good idea to check the ownership of the property before you sign the contract. Make sure that the person claiming to be the landlord does indeed own the property and has the right to let it. There have been cases in London of council or housing association tenants subletting their flats to students in order to benefit from the difference between social rents and market rents. If the council or housing association find out, they will repossess the property and the student tenants will be made homeless. For the price of ÂŁ3 you can find out the name of the owner of any property in England and Wales. You can do this online using a credit or debit card on the land registry website: www.landregistry.gov.uk > public > property ownership Create an online account and once you have done so enter the full postcode and house or flat number of the property you wish to search for. You should then purchase the “title registerâ€? and if there is a choice between Freehold and Leasehold, you should purchase the Leasehold document. Where there is only Freehold available, purchase this. Freehold available, purchase this.
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Money matters Once you have found a property you are interested in, you may be asked to make a range of payments, both before and when you are signing the contract. These are outlined below. CAUTION Whenever you hand over money, you need to get a receipt. Make sure it states clearly the amount you pay, the date, your name, the name of the person you are paying the money to, and a description of what you are paying for (a holding deposit? agency charges?). You should try to avoid paying cash (bankers draft, cheque or bank transfer are safer methods of paying), although, in reality, most landlords and agents will insist on cash for initial payments.
Holding deposits
A holding deposit is paid to the landlord/agent to hold the property for you once you have made an offer and whilst the landlord decides whether they are willing to let the property to you. Exactly what has been agreed depends on the wording, but usually once you have paid a holding deposit the landlord/agency should not then show the property to other prospective tenants. Essentially you should be paying to get ‘first refusal’ on the property. If you decide not to take the property, you are likely to lose this holding deposit because the landlord/agency can argue that they have lost rent by not renting to someone else whilst it was held for you.
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Holding deposits are controversial, both in principle and in practice. The tenant will lose money if they decide not to proceed but the landlord does not lose any money if they decide not to accept the tenant’s offer. This means that in pre-tenancy negotiations (see page 83) landlords are under far less pressure to agree to tenant requests once a holding deposit has been paid.
The Holding deposit should give you first refusal on a property
It is also not unheard of for landlords and agents to take multiple holding deposits for the same property on the basis that by asking for a holding deposit from all enquirers, the landlord is simply finding out which ones are ‘serious’ about the property. We advise you not to pay a holding deposit if this can be avoided. If you do not feel that you can avoid it, you should make sure that the receipt for your deposit outlines all the core terms of the offer to the landlord and you should try to ensure that you have read through a draft of the proposed tenancy agreement before you pay any money. A receipt for a holding deposit should include as a bare minimum: ■■ Proposed Rent ■■ Length of contract ■■ Start date of tenancy ■■ The length of time that the landlord has to consider your Offer Of course, you should only pay a holding deposit if you are sure you want to take the property (or will be able to find that extra person to join your group, if this is the case). Looking
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Damage deposit A damage deposit (or, as it is sometimes called, a tenancy deposit) is usually payable at the time you sign a tenancy agreement. It is the landlord’s insurance against you causing damage to the property or breaching the contract in some other way. Your landlord can make reasonable deductions from the deposit for: 1 Damage to the property 2 Missing items 3 Unpaid rent 4 Cleaning
Most Tenancy Deposits need to be protected in a Tenancy Deposit Protection Scheme
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The deposit is usually equivalent to one month’s or 6 weeks rent for a tenancy (although it can be anything up to two months) and slightly less (i.e. 1-4 weeks) if you are renting a room from a resident landlord. Most deposits will be required by law to be protected in a Tenancy Deposit Protection Scheme.
Tenancy Deposit Protection If a landlord takes a damage deposit from you it is likely that they will need to protect it using a government authorised scheme. Assured Shorthold Tenancies are covered by the legislation, which means that most students living in private sector accommodation will have their deposits protected. However, there are two main exceptions where your Landlord will not be required to protect your deposit: ■■ You are sharing accommodation with your landlord in their home as a lodger. ■■ The landlord lives in another flat in the same building as you (unless it is a purpose-built block of flats). If your landlord does need to protect your tenancy deposit, make sure you ask them where they are going to protect it.
Why is deposit protection important? When a deposit is protected, you have some reassurance that you can get back all the money to which you are entitled at the end of the tenancy. Deposit Protection Schemes offer a chance for landlords and tenants to resolve disputes about deposit deductions without having to go to court. If a landlord does not comply with deposit protection rules, he or she can face penalties of between 1-3 times the amount of the deposit. However it can often prove difficult to claw back an unprotected deposit. Looking
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What should happen at the start of a tenancy? At the beginning of a new tenancy agreement, a tenant pays a deposit to the landlord or agent. Within 30 days, the landlord or agent is required to give you details about how your deposit is protected, including: ■■ The contact details of the tenancy deposit scheme. ■■ The contact details of the landlord or agent. ■■ How to apply for the release of the deposit. ■■ Information explaining the purpose of the deposit. ■■ What to do if there is a dispute about the deposit. If you do not get this information, ask your landlord or agent one simple question: ‘How is my deposit protected?’ If you do not get a satisfactory answer, then you should remind them that if they do not protect the deposit, you could take them to court over this to ensure that they do. Landlords who do not protect deposits can face penalties, including being ordered to pay a penalty equivalent to between 1-3 times the amount of the deposit. You can check if your deposit is protected by using the Shelter website, www.england.shelter.org.uk/
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Safeguarding your deposit You have a responsibility to return the property in the same condition that it was let to you, allowing for fair wear and tear. It is a good idea to make sure that when you sign your tenancy agreement, you: ■■Keep a detailed list of contents (furniture and fittings). ■■Record the condition of the property and its contents make a note of whether things are brand new, used or damaged. ■■Take dated photographs of the property. ■■Check the circumstances in which your landlord or agent could have a claim on your deposit. Who are the organisations running the schemes? The four Tenancy Deposit Schemes are: mydeposits www.mydeposits.co.uk – 0333 321 9401 TDS - Tenancy Deposit Scheme www.tds.gb.com – 0845 226 7837 The DPS - The Deposit Protection Service www.depositprotection.com – 0330 303 0030 You can also search via the websites of the Deposit Protection Schemes to check if your deposit has been protected. Looking
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Moving out At the end of the tenancy, check whether you are leaving the property and its contents in the condition in which it was let to you – allowing for fair wear and tear – and check that you have paid your rent and any other expenses. Then agree with your landlord or agent how much of the deposit should be returned to you. Within 10 days you should have received the agreed amount of the deposit. Resolving disputes When you move out, if you and your landlord or agent cannot agree how much of your deposit should be returned, there will be a free service offered by the scheme protecting your deposit to help resolve your dispute. Check the information your landlord or agent gave you at the beginning of your tenancy for details. 98
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What should you do if your deposit wasn’t protected? You can apply to the County Court to make a claim for a penalty payment of between 1-3 times the amount of your deposit if your landlord failed to protect the deposit or serve the prescribed information within 30 days. Your landlord is also unable to serve a notice to get back possession of the property at the end of your contract if the deposit remains unprotected and no prescribed information is given. The Shelter website provides useful guidance on how to do this: www.england.shelter.org.uk. If your landlord is refusing to give back an unprotected deposit at the end of the tenancy, you can make a small claim in the County Court – see page 119 for further details.
Return of the deposit Return of the deposit If your deposit is covered by a Tenancy Deposit Protection scheme: ■■ Provided that there is no dispute about deductions, the balance should be returned within 10 days ■■ If the Landlord wishes to make deductions, they must inform you of these within 10 days and you are then given a period of time to reach agreement. The deposit scheme can then intervene if an agreement cannot be met. ■■ Interest may be earned on the deposit, depending on with which scheme the deposit is protected. If your deposit is not covered by a Protection Scheme because it is excluded by the legislation, we would suggest that you try to persuade the landlord to insert clauses in the contract which state that: ■■ The deposit will be returned within 10 days of the end of the letting agreement ■■ All or part of the deposit may be put towards the last month’s rent payment. Letting agents can levy a range of charges against Looking
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Agency charges Letting agents can levy a range of charges against tenants. Typical charges could be: 1 Contract fee (drawing up of the contract). 2 Reference checking fee. 3 Inventory fee. 4 Administration fee. As of 2013, letting agents are now legally required to display their fees to tenants when advertising their properties. Any that do not do so can be reported to the Advertising Standards Authority (www. asa.org.uk).
The housing charity Shelter recently conducted a survey which found that tenants pay on average £355 in fees to agents. Make sure you always make agents aware you are students as they may offer discounted fees. Under the Accommodation Agencies Act 1953, it is illegal for an agency to ask for money for registering a prospective tenant and then simply providing them with a list of properties. However there are no limits on the fees an agency can charge once a tenant has signed a contract to accept the tenancy of a property. If they are making too many charges, go elsewhere.
“Letting agency fees on average cost £355... Whilst there is evidence of some renters being charged minimal or no fees, the common experience indicates fees are high, with one in seven renters who used a letting agency (15 per cent) being charged in excess of £500. [Shelter’s] surveys show renters using a letting agent pay on average three separate fees and 38 percent pay four or more.” Shelter’s ‘End Letting Fees’ campaign FAQ – June 2013. 100
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CAUTION Unfortunately, in London there are some letting agents that make illegal charges. They will often advertise a flat at an unrealistically low rent. Once they receive calls for that flat, they will say something along the lines of ‘Oh sorry that one’s just gone, but we have plenty more like that one coming on all the time. Pay us £50 and we will put you on our lists, to let you know if anything like that comes up again.’ If you pay them money you are extremely unlikely to find anything suitable through them. They usually only make money from the registration fees and very rarely have any real offers of housing. Agencies making illegal charges should be reported to the Trading Standards department of your local authority.
Professional Bodies for Letting Agents Government statistics indicate that two thirds of agents are voluntarily members of professional and accreditation membership bodies and we would always recommend that tenants try to use these agents where possible. Anyone can set themselves up as a letting agent. However, those agents that are members of a professional body (such as ARLA, NALS or RICS) are more serious about their standards. In addition, from 1st October 2014, all letting agents will be legally required to be a member of a redress scheme, which will allow all tenants renting through an agency to complain to an independent body (see page 24 for more details). Looking
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Looking checklist... Check the property carefully both inside and outside. Ask to see the Gas Safety certificate. Ask about the neighbours. Have guarantors and/or references ready to show to the landlord. Try to negotiate. Check who owns the property and satisfy yourself that the person that you are dealing with is either the owner or has their permission to let. Get your contract checked and make sure you understand it. Make sure you understand what payments you might have to make to the letting agent if you have found the property through them.
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