Rental costs and moving in

The calculation used for defining the affordability of the rent is as follows:

The monthly gross income of the tenant(s) must equate to three times the monthly rental figure. For example, if the rent is £700 PCM the gross salary of tenant must be at least £2100 per month.

Tenants must have a clean credit history. If tenants are self employed they must have verification of their last three years’ accounts. In most cases we are unable to accept tenants in receipt of housing benefit. If you have been in your current employment for less than six months or your income falls below the above criteria, you may require a rent guarantor.

All tenants must provide relevant information in order to satisfy the Home Office’s right to rent legislation.  This includes providing a passport and, if necessary, a valid visa. If a passport is not available a driving licence and additional valid proof will be required.

If a guarantor is needed he/she must be a UK resident, preferably a home owner. The guarantor must also earn 36 times the monthly rent per annum. For example, on a rent of £700 PCM, the rent guarantor must earn £25,200 per annum.

If you are able to meet the above criteria and have paid your initial reservation fee, you will then need to complete an application form (as below) and return it to us within 48 hours. You will have a maximum of 28 days between lodging your deposit and moving in to the premises. Once your references have been accepted, a moving-in date will be agreed. On this day you will be required to pay the outstanding balance in cleared funds such as bank transfer or debit card.

The figure you will pay represents one month’s rent in advance, deposit and set-up along with any applicable fees as outlined below. An example of the monies required (based on a rent of £700 PCM) is shown below.
First month’s rent: £700.
Deposit: £900 (less £200 already paid upon reservation).
Admin fee: £180 inclusive of VAT per adult application.
Guarantor (if applicable): £60 inclusive of VAT per application.
Pet privilege charge (if applicable): £48 inclusive of VAT per application.

General fees

Reservation fee: £200. This is payable when the applicant decides to take the property and is non-refundable if the applicant withdraws. If the tenant fails references our set-up fee is deducted and the balance is refunded. If the tenancy is granted we use this £200 towards the final balance.
Set-up fee: £180 inclusive of VAT per adult application. This includes fees for agreeing the tenancy, referencing, credit searches, preparation of tenancy agreement, schedule of condition (tenant’s share) and tenancy negotiation.
Guarantor (if applicable): £60 inclusive of VAT per application.
Pet privilege charge (if applicable): £48 inclusive of VAT per application.

Additional charges throughout the tenancy

Late rent: 8 per cent above Bank of England base rate.
Abortive inspection visits: £24 inclusive of VAT.
Optional fixed-term tenancy renewal fee: £48 inclusive of VAT (tenancies continuing on a periodic basis are not charged).
Early Release Penalty: The tenant and landlord are both committed to the initial fixed term of the tenancy.  The landlord or agent have no obligation to allow an early release but in circumstances where this has been agreed in writing the tenant would pay a fee of £300 (£250 plus vat) to the agent.    Release is only taken from the day that a new occupant signs a tenancy and takes occupation.   Sufficient time must be allowed for the agent to carry out a final check and prepare a new schedule (usually three days) between tenancies.

 

Downloads

The Property OmbudsmanARLA - Association of Residential Letting Agents