Tenant Fees Apply
Once you have found a property that you would like rent we will put forward the terms of your offer to the Landlord. All offers following agreement of the terms remain Subject to Contract and Satisfactory References, until the signing and dating of the tenancy agreement by both Landlord and Tenant, and the receipt of satisfactory references.
TENANT EXPENSES FOR A TENANCY (new Assured Shorthold Tenancies (ASTs) signed on or after 1 June 2019)
The Tenant Fees Act 2019 comes into force on 1 June 2019, the fee ban applies to Assured Shorthold Tenancies (ASTs). From that date it is illegal for letting agents to charge fees to Tenants apart from a small number of exemptions that are referred to as ‘permitted payments’. Permitted payments are:
• Utilities and council tax
• Tenancy/Security deposits
• Holding deposits
• Default fees
• Fees for changing a Tenant or ending a tenancy early
UNPAID RENT Interest at 3% above the Bank of England Base Rate from Rent Due Date until paid in order to pursue non payment of rent. Please Note: This will not be levied until the rent is more than 14 days in arrears.
LOST KEY(S) OR OTHER 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 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) or other security device(s).
VARIATION OF CONTRACT (TENANT’S REQUEST) £50 (inc. VAT) per agreed variation. To cover the costs associated with taking Landlord’s instructions as well as the preparation and execution of new legal documents.
CHANGE OF SHARER (TENANT’S REQUEST) £50 (inc. VAT) per replacement Tenant or any reasonable costs incurred if higher. To cover the costs associated with taking Landlord’s instructions, new Tenant referencing and Right-to-Rent checks, deposit registration as well as the preparation and execution of new legal documents.
EARLY TERMINATION (TENANT’S REQUEST) Should the Tenant wish to leave their contract early, they shall be liable to the Landlord’s costs in re-letting the property 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.
INITIAL MONIES DUE
After negotiations have been completed and the terms of the tenancy are agreed the following payments to the Agent will be required:
Holding Deposit (per tenancy)
One week’s rent. This is to reserve a property. Please Note: This will be withheld if any relevant person (including any guarantor(s)) withdraw from the tenancy, fail a Right-to-Rent check, provide materially significant false or misleading information, or fail to sign their tenancy agreement (and / or Deed of Guarantee) within 15 calendar days (or other Deadline for Agreement as mutually agreed in writing).
An initial rent payment in advance either calendar monthly or quarterly (based on the calculation of the agreed weekly rent multiplied by 52 weeks and divided by 12 months to equal the calendar monthly rent. The monthly rent if applicable is then multiplied by 3 to equal the quarterly rent).
A tenancy deposit, also known as a security deposit.
(PER TENANCY. RENT UNDER £50,000 PER YEAR) equal to Five weeks’ rent. This covers damages or defaults on the part of the Tenant during the tenancy.
(PER TENANCY. RENT OVER £50,000 PER YEAR) equal to Six weeks’ rent. This covers damages or defaults on the part of the Tenant during the tenancy
Please note. for tenancies that fall outside of the Housing Act a tenancy deposit can be agreed at an amount greater than six weeks rent if required.
For existing Assured Shorthold Tenancies (AST’s) signed before 1 June 2019 (up to 31 May 2020) and all/any Contractual - Common Law non Housing Act Tenancies
If your offer is accepted you will be asked to pay a Holding Deposit which is the equivalent to one weeks rent and the Tenancy Set up Fee. The Holding Deposit will be refunded to you at the commencement of the tenancy but not including the Tenancy Set up Fee (by means of deduction from the monies due as stated on the tenant statement) or in the event that the Landlord decides for any reason not to proceed. Should you change your mind about moving into the property, or the tenancy cannot proceed because your references are not forthcoming or prove unsatisfactory, this sum will be retained by Paul Lee & Company. After negotiations have been completed and the terms of the tenancy are agreed the following payments will be required:
• An initial rent payment in advance either calendar monthly or quarterly (based on the calculation of the agreed weekly rent multiplied by 52 weeks and divided by 12 months to equal the calendar monthly rent. The monthly rent if applicable is then multiplied by 3 to equal the quarterly rent).
• A tenancy deposit equal to six weeks rent if no pets or equal to eight weeks rent with pets of the agreed rent, i.e. £400.00 per week multiplied by 6 equals £2,400.00.
• A Tenancy Set up Fee of £85.00, inclusive of VAT charged per Tenant, as a one-time cost for the entire term of the tenancy to include any tenancy renewals. The Tenancy Set up Fee includes the cost of referencing (identity, immigration and visa confirmation, financial credit checks, obtaining references from current or previous employers / Landlords and any other relevant information to assess affordability) as well as contract negotiation (amending and agreeing terms), arranging the tenancy, the provision of the tenancy agreement, associated tenancy documents and the protection of the tenancy deposit with the TDS (please refer to the Deposit heading in our Tenants Guide). Please note, the tenancy deposit does not form part of the agent's fees.
• If the Landlord pays for and supplies you with a professional inventory report at the commencement of the tenancy, the Tenant agrees to then pay for the inventory check out at the end of the tenancy. The current cost for check outs, charged by the inventory clerk that we use range between £138.00 inclusive of VAT for a one bedroom property, £150.00 inclusive of VAT for a two bedroom property, £162.00 inclusive of VAT for a three bedroom property, £228.00 inclusive of VAT for a four bedroom property and £276.00 inclusive of VAT for a five bedroom property. Please note, we do not request an additional agent handling fee on top of this charge.
• Please note, if the property we have found you is through another Letting Agent then they will confirm to you their Tenancy Set up Fee and charges.
The initial monies paid to the Agent must be in cleared funds, the first payment is payable by bank transfer BACS or CHAPS to the Agents Clients Account and thereafter payments of rent should be made by bank standing order. You will be advised in writing if the future rental payments are made to the Agent or the Landlord.
Please contact us for clarification on these fees.