Information for Tenants

MARTYN GERRARD LETTING DEPARTMENT NOTES FOR TENANTS

PLEASE READ THIS DOCUMENT CAREFULLY AND SEEK INDEPENDENT LEGAL ADVICE IF NECESSARY BEFORE PAYING A HOLDING DEPOSIT.

OFFER     

Now that you have found a suitable property, you (the Tenant) are in a position to make an offer to the Landlord for their consideration.  Please note that all offers are subject to you fulfilling our assessment criteria and returning required documentation within the agreed timescales.

HOLDING DEPOSIT

Before we can put your offer to the Landlord, you will be required to pay a non-refundable holding deposit, which equals ONE WEEKS RENT, together with a tenant reference/assessment fee of £100.00 per person (if required one guarantor reference is carried out free with each further reference at £100.00 each). Paying a deposit will prevent the continued marketing of the property by us for the period of one week, and is reliant on us receiving satisfactory references, within this time.

The holding deposit is NON-REFUNDABLE, should any applicant decide to withdraw from proceeding with the tenancy for any reason, not return the required Homelet assessment form within 3 days, provide inaccurate information on the assessment form, change the commencement date of, or the term of the tenancy or deviate from the terms stated on the offer confirmation in any way.

However should the Landlord not accept your offer, the holding deposit together with the tenant assessment fee will be refunded in full as soon as reasonably possible. To avoid any doubt if your offer is being made subject to any conditions, please state these clearly on the offer confirmation and ask your lettings negotiator to witness your signature.

OFFER ACCEPTANCE, subject to contract and suitable references

Once the terms of you offer have been accepted by the Landlord, we will carry out the tenant assessment through Homelet and offset the holding deposit against the first months rent, subject to contract and suitable references.

 TENANT ASSESSMENT

To be considered a suitable tenant, you need to meet some basic requirements.

1.    You must not have any adverse credit history.

 2.    You must have regular verifiable income of at least 2.5 times the rent. Your gross annual income must equal 30 times the monthly rent. If it is a joint application, this ratio will apply to joint income.

3.    You should be able to provide proof of your current address. Only a recent utility bill (last 3 months), a full UK Driving Licence, or a letter from employer on headed paper, signed and dated is acceptable.

Depending on your personal circumstances there maybe other requirements, your letting negotiator will go through these at the time you make your application.

ACCEPTANCE

Upon acceptance of your references, on or before the date of occupation at a mutually agreed time, you will have the opportunity to read and understand the tenancy agreement before signing. You will be expected to sign our standard tenancy agreement, your lettings negotiator will be able to explain any clauses you have a query about.

Within 10 days of the references being accepted, an amount made up of a sum equal to the first months rent, minus the previously received holding deposit will be payable. Prior to the tenancy commencement date we will also require an amount equivalent to 6 weeks rent which will be held in one of the specified Tenancy Deposit Schemes as dilapidation deposit.

TENANCY DEPOSIT PROTECTION

Under the Housing Act 2004, the government introduced mandatory, universal tenancy deposit protection. Tenancy Deposit Protection will apply to all assured shorthold tenancies in England and Wales where a deposit is taken. Virtually all new contracts to rent a property are assured shorthold tenancies.

The Landlord / agent, not the tenant, will have the option to choose whether to safeguard the deposit in the custodial or an insurance-based scheme.

When you rent a property / renew your tenancy after 6^th April 2007, your Landlord/Agent must provide you the prescribed information outlining which scheme your deposit has been safeguarded with.

There will be two types of scheme and it will be up to your Landlord/Agent to choose which one they want to join:-          

The custodial scheme: In this scheme, your Landlord/Agent will pay the deposit into the scheme and the scheme will look after it.

 Insurance-based scheme: In this scheme your Landlord/Agent will keep the deposit, but will pay insurance to the scheme, so that your deposit will be protected.

The Government has protected tenants’ deposits, so that when a tenant pays a deposit, and he/she is entitled to get all or part of it back, the tenant can be assured that this will happen, preventing unscrupulous Landlords retaining these with no justification.

A tenant should receive a Certificate to show that the Deposit has been lodged / registered, within 14 days with an approved scheme. If tenants vacate a property and realise that the deposit hasn’t been protected, the tenant can apply for a court order and the court will order the Landlord to repay the deposit amount to the tenant. We would advise that Tenants need to make sure that their Landlord/Agent has given them the prescribed information relating to the scheme that is safeguarding their deposit, and check that the deposit is safeguarded, within 21 days of paying the deposit (allowing time for the posting of documents after the Certificate has been issued).

The legislation will only apply to new deposits against ASTs entered into on or after 6^th April 2007. Any deposit paid before this date will not need to be safeguarded by a tenancy deposit scheme.

If the tenant decides to remain in their existing rented property beyond the initial fixed, how the deposit is treated will depend on how the tenancy is continued:

Periodic Tenancy – i.e. the tenancy continues with no new agreement, allowing either party to give two months notice to Quit – Tenant Deposit Protection will not apply, as no new Assured Shorthold Tenancy will have been created.

Renewal Tenancy – i.e. a new AST is created between the same Landlord and tenant for the same property on substantially the same basis, for a new fixed term – Tenant Deposit Protection will apply to the initial deposit that was paid prior to 6 April 2007.  Therefore the Landlord/Agent must register the deposit within 14 days of the new AST.

Tenants whose deposit has been registered with an Insurance Based Scheme must make their best endeavors to inform the letting agent if they wish to raise a dispute about the deposit within 10 workings days after the lawful end of the tenancy and vacation of the property – unless a different period is specified in the tenancy agreement.

For further information please do not hesitate in contacting our: Compliance Manager on

0208 343 4340 or deposits@martyngerrard.co.uk.

“IMPORTANT INFORMATION REGARDING YOUR TENANCY”

A signed standing order form MUST be completed and returned to us prior to the commencement of the tenancy as all further payments of rent MUST BE MADE BY STANDING ORDER  by the monthly rent due date.

We highly recommend that the tenant takes out adequate contents insurance to cover their own and the landlord’s possessions. This is not a compulsory requirement, however, it may protect your deposit in cases of accidental damage.

It is the responsibility of the tenant(s) to arrange for Water, Gas, Electricity, Telephone and Council Tax to be transferred into their name at the commencement of the tenancy THE SUPPLIER MUST NOT BE CHANGED WITHOUT PRIOR PERMISSION; doing so may incur an administration charge.

An Inventory will be prepared on commencement of the tenancy, usually by an Independent Inventory Company, noting the contents and their condition. This will help to protect your dilapidation deposit. The cost of this will be borne by the Landlord; you will be liable to bear the cost of the Check-out, at the end of the Tenancy. You must sign the inventory and return it to the Landlord/Agent noting any inaccuracies, failure to do so will confirm acceptance of the Independent Inventory clerks notes as accurate.

Unless we are the managing agents, any problems relating to the maintenance at the property are the responsibility of your Landlord., You must therefore contact your Landlord immediately, should any issues arise. Contact numbers will be provided on request at the commencement of the tenancy, or will be noted in the Tenancy agreement.

Where Martyn Gerrard Manage the property, you will be supplied with the number of our dedicated Management Dept, who you should call immediately about any maintenance issues.

 With properties that Martyn Gerrard manage, the Landlord will most likely require us to carry out periodic inspections; we will of course contact you to arrange a convenient time, although we will be allowed access if necessary with keys, if contact cannot be made, or in the case of an emergency.

Should your rent Not Be Received Within 10 Days Of Its Due Date an additional administration charge of £30 + Vat will be levied upon you, in addition to any bank charges incurred.

When you vacate the property, should an independent inventory have been prepared when you moved in, the Landlord or our Management Dept. will arrange for the same inventory company to attend the property and prepare a Check-out Report. The cost of this will be payable by the vacating tenants, and will be deducted from your deposit.

 If any breakage or damage are noted at the time of the checking-out report / final inspection; or the property be left in an unsatisfactory condition, deductions may be made from the dilapidation deposit (Excluding fair wear and tear). The property should be left in as good a state as you found it in, and the Landlords FURNITURE AND CHATTELS MUST BE LEFT IN THE SAME ROOM AS NOTED ON THE INVENTORY.

ADDITIONAL INFORMATION

PLEASE MAKE SURE TO ADVISE US OF ANY CHANGE OF PERSONAL CIRCUMSTANCES.

MAKE SURE YOU READ AND UNDERSTAND THE “NOTES TO TENANTS” AND THE TENANCY AGREEMENT.

MAKE SURE THAT YOU CHECK THE INVENTORY.

MAKE SURE THE FULL RENT IS PAID ON TIME BY STANDING ORDER.

YOUR DILAPIDATIONS DEPOSIT WILL BE PLACED IN A TENANCY DEPOSIT SCHEME AND CAN NOT BE USED AS THE LAST MONTHS RENT!