Tenant’s Guide and Fees 2019-05-15T12:58:49+00:00

Tenant’s guide

What to expect from M & M Properties

The purpose of this guide is to provide you with information relating to a typical tenancy and the costs and procedures involved if you proceed to apply to rent a property through M & M Properties.

Tenancy application

When you have found a suitable property to rent you will be required to complete an application/reservation form. One form will be required for every person applying and intending to live at the property over the age of 18 years. These forms are to be submitted with the accompanying ‘ Holding deposit ‘.

All reference checks are carried out by a professional referencing company and will include a credit reference, an Employer’s reference, an Accountant’s reference and a previous Landlord’s reference where applicable.

You will be required to provide two forms of identification which will include a valid passport and a recent copy of official correspondence, i.e. utility bill at your last most recent stated address. Under the Immigration act 2014 as amended in 2016, we are unable to offer a tenancy unless the person applying is a British Citizen or a national from a country within the European Economic Area (EEA), or a Swiss National or has a right to rent in the UK. The appropriate right to rent documentation will be required to be submitted in advance of any application to rent being processed.

In the event a Guarantor is required, the same reference procedure will apply. If the application is successful the Guarantor will be required to sign a ‘Deed of Guarantee’.

We are unable to hold a property until a completed application/reservation form  and any other relevant documentation  has been submitted and the Holding deposit has been paid. Once we start the referencing process all other work associated with your proposed move will commence including preparing the property for occupation and the preparation of all legal documentation including your Tenancy agreement.

Fee’s and cost’s associated to your Tenancy application and tenancy

Rent

The monthly amount of rent you will pay on a per calendar basis for the duration of the tenancy agreement and any further extensions or renewals.

Security Deposit

Five weeks rent where the annual rent is less than £50.000 or six weeks rent where the annual rent exceeds £50.000.

Nil deposit scheme may be available on some properties. If this may be of interest to you please ask one of our property managers whether it is available on the property you are interested in, and the costs associated with this insurance backed scheme.

Unpaid rent

Interest at 3% above the bank of England Base Rate from rent due date until paid. Please note: This will not be levied until the rent is more than 14 days in arrears.

Lost key(s) or security device(s)

Tenants are liable to the actual cost of replacing any lost key(s) or other security device(s). If the loss results in locks needing to be changed, the actual costs of a locksmith, new lock and replacement keys for the tenant, Landlord or any other persons requiring keys will be charged to the tenant. If extra costs are incurred there will be a charge of £15 per hour ( inc vat ) for the time taken replacing lost key(s),other security Device(s).

Variation of contract ( tenants request )

£50 ( inc vat ) per agreed variation. To cover a proportion of the costs associated with taking Landlord’s instructions as well as the preparation and execution of new legal documents.

Change of sharer ( tenants request)

£50 ( inc vat ) per replacement tenant or any reasonable costs incurred if higher. To cover a proportion of the costs associated with taking landlords instructions, new tenant referencing and right to rent checks, deposit registration as well as the preparation and execution of new legal documents.

Early termination ( tenants request )

Should you wish to leave your contract early, you will be liable to the Landlords costs in reletting and granting the termination, as well as all rent due under the tenancy until the start date of the replacement tenancy. These costs will be no more than the maximum amount of rent outstanding on the tenancy.

Marketing fee £144.00( inc vat )
Start of tenancy fee’s £270.00 ( inc vat )
Service charge outstanding due to the agent by the landlord for  the remainder of the tenancy agreement term.

Fee example – 5 months remaining on contract. Rent @ £800 pcm. Service charge @14.4% ( inc vat ). £800pcm x 14.4% = £115.20 x 5 months  = £576.00

Age

All applicants applying for rented accommodation must be over the age of 18. We cannot consider any applicants beneath this age. Any applicants under the age of 21 years will require a Guarantor, unless otherwise stated.

Tenancy Agreement

Before a tenancy commences you will be required to sign a tenancy agreement outlining the Landlords and Tenants obligations. The tenancy will be created for the sole use and occupation of those Tenants named on the tenancy agreement. The Tenant(s) cannot assign or sublet or take in any lodger or paying guest or part possession of the whole or any part of the premises, nor allow any non-paying occupiers to be resident at the property on a regular basis. No application will be considered with more than two people sharing unless the express permission of the Landlord of the property has been given.

Guarantor obligations

In certain circumstances the landlord will require a Guarantor. This will be due to your references not meeting the set parameters required to accept you as a tenant. A guarantor will need to be referenced in the same way as if they were a tenant and will be required to sign a deed of Guarantee, guaranteeing the performance of your tenancy including the payment of rent. This Deed will last for the duration of time you are renting the property including all extensions or renewals of contract.

Renewal or extension of your tenancy

Your initial term of tenancy is likely to be for a period six months although this will vary with each Landlord. It is therefore important for you to confirm the length of tenancy before proceeding with your application.

Holding Deposit and Security Deposit

The Holding deposit will be equivalent to one weeks rent. Once references have been taken and accepted you will be required to pay the security deposit. The holding deposit will form part of the required five weeks security deposit and will be protected under the housing act of 2004.

Example : Rent £800.00pcm, x 12 months divided by 52 weeks =£184.61 per week  x 5 weeks = £923.07 security deposit.

Tenants dispute service

Your deposit will be protected under the housing act of 2004 via the Tenants dispute service. M & M Properties will provide you with a certificate and guide on how your deposit has been protected and how a dispute if arises, can be resolved swiftly, inexpensively and impartially.

Pets

If a landlord accepts a tenancy with a pet you will be required to sign a separate pet licence and may pay an increased rent agreed with the landlord at that time that may be higher than the advertised rent level. You should expect to pay a minimum extra amount of £25.00 pcm but this will be negotiated on a Property by property basis.

Inventory and schedule of condition

An inventory and schedule of condition of the property, its contents, condition, furniture, fittings and effects will be prepared.  A period of seven days from commencement of the tenancy will be allowed for you to check, agree, sign and return the inventory. If you have made any amendments to the inventory, those amendments will be verified by M & M Properties. The inventory and schedule of condition forms part of your tenancy agreement, you should check it thoroughly as it will form the basis of any defence or dilapidation claim by the Landlord at the end of the tenancy period.

Inspection visits

Many managed properties are subject to inspections which are carried out at a mutually agreed time. The purpose of the visit it to check the condition of the property, the general cleanliness, garden maintenance and how the tenancy is generally being conducted.

Keys

At the start of your tenancy you will be provided with at least one set of keys for your property. It is likely that M & M properties hold a master set at their offices in Hockliffe Street but this is not guaranteed and therefore you cannot rely on M & M Properties to be a second key holder in the event of loss of keys or lock out.

Utilities

M & M Properties will notify Gas, electric, water and council tax of your tenancy start date and meter readings will be kept on file and provided within your inventory and schedule of condition. You are required to  contact all services with meter readings to ensure your accounts are set up as soon as possible. Please be aware it is the tenants responsibility to engage with the Utility supplier and ensure you are registered for these services  at the  property.

Insurance

The tenant is responsible for insuring his or her personal effects. It is strongly recommended that Tenant liability insurance is taken out covering the Landlords’ fixtures and fittings. Nil excess policies available. You can access a quote online by going towww.mandmproperties.co.uk  and go to

insurance quote

When do I sign and what do I pay

Once references have been accepted and the security deposit has been paid, the date you were working towards for your move will be confirmed and the final work required to meet this date will be completed. You will receive a contract pack via email providing you with all the documents relating to your new property. If you are not online, this will be sent to you in the post. It is our intention to have these documents sent to you well in advance of your move date but of course this will depend on how quickly you need to move from first applying. Signing of the agreement and payment of the first month’s rent will take place at an agreed time prior to taking possession of the property.

Security Deposit to be paid once references are accepted. Rent to be paid prior to taking possession. All monies are required to be paid in cleared funds before possession of the property is given. Please note if you are paying by personal cheque we will require ten days before clearance can be confirmed.

The method we use for calculating the daily rent is: monthly rent x 12 divided by 365 days in the year. If the move in date is not the 1st of the month the rent for the first month will be worked out on a pro-rata basis. Please note that if the move in date is the 15th of a month or after you will be required to pay the balance of that month plus the following month in advance before you take possession.

Rent Payments

All rent is payable in advance on the first day of each month. A standing order will be required to be signed. Payment to be made three working days before the due date.

Tenant’s obligations

The responsibility of the property lies firmly with the tenant. It is particularly important that when you are absent from the property for any length of time the property is properly secured and in the winter months the necessary steps are taken to prevent freezing of water pipes and heating systems. If you are in a flat or maisonette, you will also be bound by the rules of the management company covered in the head lease. You should inform M & M Properties immediately if you are aware of a problem that is harming the property, or one that may cause damage.

The Agents obligations

Our obligations will vary depending on the agreement we have with the Landlord. We will advise you at the start of the rental process as to whether we are letting and managing the property or providing an alternative service for the landlord.

Refunds

We aim to always be fair with your application and understand that things do not always proceed as planned. Where your application does not proceed you can expect us to deal with refunds as follows:

  • If your offer of rent prior to references being taken is not accepted by the Landlord, any holding deposit  paid to us will be fully refunded.
  • If the tenant or guarantor withdraws from the application process the holding deposit will be withheld.
  • If the tenant fails the right to rent check the holding deposit will be withheld.
  • If the tenant provides materially false or misleading information the holding deposit will be withheld.
  • Failure to sign the tenancy agreement within 15 calendar days from security deposit being received will result in the proposed tenancy being cancelled and the holding deposit being withheld, any funds over and above this amount will be refunded.

Membership

M & M Properties are a licensed member of  Propertymark (ARLA  – Association of residential letting agents )  Licence numbers, Mr M Smith M0032987 and Mr S Root M0039663.

Ombudsman for residential letting agents , Membership number N00820

Client Money Protection Scheme ( CMP ) Propertymark, membership number Ref:C0004705

Frequently asked questions

Do I still have to pay for my reference when first applying for my rented property ?

No, reference fee covers the costs of checks made by the letting agent to gauge whether a prospective tenant will be able to afford to rent throughout the tenancy. On new tenancies from the 1st June 2019, the costs of these checks will be met by the landlord.

Does this effect my security deposit ?

Yes it does. For new tenancies signed on the 1st June 2019, security deposits are capped at equivalent of ‘five weeks’ rent ( or six weeks if the annual rent is over £50,000 ). If you have paid a higher deposit for your existing tenancy, when you sign a new contract, the letting agent will have to refund, within 28 calendar days, anything which is more than five or six weeks of the new rent.

What is a permitted payment ?

The Tenant fee Act 2019 came into force on the 1st June 2019. From that date it is illegal for letting agents to charge fee’s to tenants apart from a small number of exemptions that are referred to as ‘permitted payments’, they are:

  • Rent
  • Security deposit
  • Holding deposit
  • Utilities and council tax
  • Default fee’s
  • Fee’s for changing a tenant or ending a tenancy early
  • Lost key(s) or Security Devices(s)

What if I want to end my contract early ?

If a tenant wants to break their contract early over and above the agreed provisions within the tenancy agreement, the agent can charge the reletting costs for the property up to a maximum rent still due under the tenancy. Please refer to ‘early termination costs under ‘Fee’s and cost’s associated to your Tenancy application and tenancy’.

Application for company tenancy

Please be advised that the following fees and procedures apply to a company renting a property (not under an Assured Shorthold Tenancy).

  • A company application and tenancy fee of £420.00.
  • If a Relocation Agent is being used to handle your move an additional administration fee of £200.00
  • A renewal fee of £98.00 will be required on any renewal or extensions of the original agreement.
  • Subject to satisfactory references, a holding fee of five weeks rent will be required to hold the property. This sum, plus any additional amount stated at the time of application, will form the deposit on the property at the commencement of the tenancy. Please note, in the event of cancellation for whatever reason, the holding fee will be non-refundable. Deposits may vary, you should therefore seek
    assistance from a property manager as to the level of deposit required on the property you are applying to rent.
    Reservations are subject to satisfactory references.
  • Administration fees and all monies as detailed above will need to be paid in cleared funds i.e. direct bank transfer, cash, banker’s draft.
  • LET ALLIANCE will be the Tenant Investigation Company, (all queries regarding this application should be directed to a property manager only as other members of staff at M & M Properties are not familiar with the tenant reference procedures).
  • Under the Immigration Act 2014 and 2016, M & M Properties are unable to offer a tenancy unless the nominated tenants are a British Citizen or a national from a country within the European Economic Area (EEA), a Swiss National or has a right to rent in the UK.

All fees are inclusive of VAT at the current rate of 20%

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