Moving in Guide
How do you calculate rental affordability?
The monthly gross income of tenants must add up to 2.5x monthly rental figure; e.g. if rent is £700pcm, tenant’s gross salary must be at least £21,000 (£700 x 2.5 x 12).
What information must be provided in an application?
Tenants will be asked questions which relate to their income, employment status and credit history. If a tenant is self-employed, they must have verification of their accounts over the last three years.
Tenants must provide the correct information to align with the Home Offices’ Right to Rent legislation; including providing a passport and a valid visa (if necessary). In placement of a passport, a birth certificate, driving licence and additional piece of valid proof will be required.
A utility bill dated within the last three months at the current address.
Tenants will be asked to provide landlord references from current and previous landlords where applicable.
Before moving in, tenants will need to provide proof of at least £2500 insurance cover in the event of damage incurred to the landlord’s property/possessions.
Will a guarantor be required?
If your circumstances match any of the below, a guarantor will need to be provided. This will preferably be a homeowner who is earning three times the annual rent (before tax). Guarantors will be required to sign a deed which makes them responsible for any rent, damage or legal fees not paid for by the tenant.
· If you are 21 or under
· If your household is earning less than 2.5x the annual rent (before tax)
· If you are in temporary employment/ on a temporary contract
· If you are currently in a probationary period at work
· If you are claiming any benefits
· If your credit score is low
What fees should you expect to pay?
The amount you pay represents a month’s rent in advance, a deposit and an administration fee, together with any other applicable fees. For example, based on a rent figure of £700 per month, fees would be:
- First month’s rent: £700
- Deposit: £1050 (1.5x rent)
- Administration fee: £240 incl. for the first applicant and £120 for additional applicants
The administration fee includes fees for agreeing the tenancy referencing, credit searches, preparation of tenancy agreement, schedule of condition and tenancy negotiation
- Guarantor: £100 + VAT (£120 incl.) per application
- Company tenant: £300 incl.
- Pet privilege charge: £40 + VAT per application (£48 incl.)
- Reservation fee: £400; this is payable when the applicant decides to take the property and is non-refundable if the applicant withdraws of if references fail
How long does the application process take?
Once you have met the appropriate criteria and paid your initial reservation fee, you then need to complete an application form and return it within 5 days. There is a maximum of 28 days between paying the reservation fee and moving into the premises. Once the references have been accepted, a moving-in date will be agreed upon; on this day you pay the outstanding balance in cleared funds (bank transfer/debit card).
How are deposits protected?
Every tenant may be assured their deposit monies are kept in a ‘ring fenced’ account; a certificate will be issued on registration of the deposit funds.
Will there be a property inventory?
You will be provided with a full inventory/schedule of condition at the start of the tenancy, outlining the condition of the property and current meter readings.