Tenants Guide
A guide to renting a property through us.
How do I find property to rent?
If you would like information on suitable properties or would like to discuss your requirements please contact us, by telephone or email.
Register your requirements with Paul Lee and Company
You can register by either giving us your contact details and requirements, which we will match to our current property list and our multi listing database. We have close relationships with all the major letting agents in the area, and can access the majority of properties on the market at any one time. By pressing the "Property To Let" tab, viewing our list of properties and registering your interest in particular properties. It is important that you tell us as much as possible about your budget and the type of property required - this avoids wasting your valuable time viewing unsuitable properties.
You will be able to view our flats and houses we have to let in detail with multiple photographs, floor plans and maps showing locations. You can also get details of local area facilities including local schools.
Viewings
We have seen all the properties we are marketing. We only list quality properties, we will not take instructions on properties which are sub-standard! All viewings are always accompanied, we can meet you at our office or at the property to suit your needs
Viewings can be arranged for any weekday 10.00 am - 5.00 pm Monday to Friday. All viewings are subject to any restrictions from current tenants or landlords. We like to give current tenants 24 hours prior notice and please bear in mind that properties can be viewed much more successfully in daylight hours.
Offers
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.
YOUR HOLDING DEPOSIT EXPLAINED
The tenancy application - for an Assured Periodic Tenancy (APT) from 01/05/2026 and for non-Housing Act tenancies please refer to the heading below - For Common Law non Housing Act Tenancies
Before your application can be fully considered, you will need to pay to us a holding deposit equivalent to one weeks’ rent for the property you are interested in. This guide explains what happens to that holding deposit and the circumstances in which the holding deposit will / will not be refunded. It is important that you know your legal rights and accordingly you should feel free to seek independent legal advice before signing this or indeed any other document which we might put before you.
Once we have your holding deposit, current legislation The Tenant Fees Act 2019 stipulates that the necessary paperwork should be completed within 15 days or such longer period as might be as mutually agreed writing. In most cases we will confirm that the relevant period will be extended to the number of days as shown on our holding deposit receipt form that we will send you when we receive your holding deposit. You will be required to sign a copy of the holding deposit receipt form to confirm that you act for all prospective Tenants jointly and severally and confirm acceptance of the terms and payment of the holding deposit.
If at any time during that extended period you decide not to proceed with the tenancy, then your holding deposit will be retained by Paul Lee & Company. By the same token, if during that period you unreasonably delay in responding to any reasonable request made by our firm, and if it turns out that you have provided us with false or misleading information as part of your tenancy application or if you fail any of the checks which the Landlord is required to undertake under the Immigration Act 2014, then again your holding deposit will not be returned. It will be retained by Paul Lee & Company.
However, if the Landlord decides not to offer you a tenancy for reasons unconnected with the above then your deposit will be refunded within 7 days.
Should you be offered and you accept a tenancy with our Landlord, then your holding deposit will be credited to the first months’ rent due under that tenancy.
Where, for whatever reason, your holding deposit is neither refunded nor credited against any rental liability, you will be provided with written reasons for your holding deposit not being repaid within 7 days.
You will not be asked to pay any fees or charges in connection with your application for a tenancy. However, if your application is successful under our standard assured shorthold tenancy agreement, you will be required to pay certain fees for any breach of that tenancy agreement in line with the Tenant Fees Act 2019. In consideration of us processing your Tenant application, you agree to pay those fees to us on request.
TENANT EXPENSES FOR A TENANCY (new Assured Periodic Tenancy (APT) from 01/05/2026)
The Tenant Fees Act 2019 comes into force on 01/06/2019, the fee ban applied to an Assured Shorthold Tenancy (AST) and from 01/05/2026 it applies to an Assured Periodic Tenancy (Renters Rights Act 2025).
You can charge tenants or potential tenants the following payments in connection with a tenancy:
- the rent if you and the tenant have signed the tenancy agreement
- a refundable tenancy deposit
- a refundable holding deposit to reserve a property
- a payment to change the tenancy when requested by the tenant
- a payment when the tenant does not give the correct amount of notice
- including utilities, communication services and council tax as part of the rent when not paid separately
- a fee for late payment of rent
- a fee for replacing a key or security device
- You cannot charge your tenant any payment that is not on this list.
Rent
You should agree the amount of rent to be paid with the tenant when agreeing to let the property. On or after 1 May 2026, the rent must not be more than the advertised amount, and you must clearly explain to your tenant what is included. The rent should be fair and in line with other similar properties in the area. Rent should be required at regular intervals and should be equally split across the tenancy. On or after 1 May 2026, you cannot ask for a tenant to pay rent before the tenancy agreement is signed. If a tenant offers you rent before the tenancy agreement is signed, you must not accept it. You can ask for a maximum of 1 month’s rent in advance after you and your tenant have signed the tenancy agreement and before the tenancy start date.
Refundable tenancy deposit
You can require a tenancy deposit of up to 5 weeks’ rent for properties where the annual rent is below £50,000. For tenancies with an annual rent of between £50,000 and £100,000 you can require up to 6 weeks’ rent. You do not have to take a tenancy deposit. If you do take a deposit, you must protect it in a government approved scheme.
Refundable holding deposit
You can ask a potential tenant to pay a deposit to hold the property while you undertake reference and pre-tenancy checks. The maximum holding deposit you can ask for is equivalent to one week’s rent.You cannot accept more than one holding deposit per tenancy at a time. The standard amount of time you can hold the deposit for is 15 calendar days after receiving it. You can agree a longer or shorter time period with the tenant in writing. You do not have to take a holding deposit. The maximum deposit amount is per tenancy not the number of tenants. For example, three potential tenants want to share a flat on the same tenancy agreement, they pay a total of one week’s rent between them, not each.
You must refund the holding deposit unless the tenant:
- fails a Right to Rent check
- withdraws from the application process
- does not respond or contact you to progress the tenancy
- gives you false or misleading information that affects their suitability as a tenant
If the tenant has given incorrect information that does not affect their suitability as a tenant, for example, a misspelling or a missing previous address, then you must return the holding deposit. If the tenant signs the tenancy agreement, you can agree how the deposit will be refunded. You could refund it by reducing the amount of the first month’s rent or reduce the tenancy deposit For all other circumstances, you must return the deposit within 7 days. If you do not return it, you may receive a financial penalty.
If you keep the holding deposit
If you do not tell the tenant the reason for your decision in writing within 7 days you may receive a financial penalty. You should keep a record of your costs to show that they are reasonable.
Utilities and other bills
You can include the costs of utilities such as gas, electricity, water bills and communication services such as broadband and a landline phone in the rent payment. If some or all of these bills are included with the rent, these must be listed as terms in the tenancy agreement. Any utilities included in the rent must be an accurate reflection of costs.You cannot make a profit from reselling utilities as set out in the following legislation:
- the Office of Gas and Electricity Markets (OFGEM) fixes maximum resale prices under section 44 of the Electricity Act 1989 and section 37 of the Gas Act 1986
- the Water Resale Order 2006 governs the maximum price for water
Council tax
- You can include a payment for council tax within the rent where this is agreed in the tenancy agreement.??
- If payments for council tax are not included in the rent, you can include a term in the tenancy agreement requiring the tenant to pay council tax to the relevant local authority.??
- You cannot require a tenant to pay a separate, additional payment for council tax to you directly.
Television licence
- You can include a payment for a television licence within the rent where this agreed in the tenancy agreement.
- If payments for a television licence are not included in the rent, you can include a term in the tenancy agreement requiring the tenant to pay for a television licence.
- You cannot require a tenant to pay a separate, additional payment for a television licence to you directly.
Fees for tenancy changes
You do not have to charge a fee for tenancy changes. Where a tenant requests a change to the tenancy agreement, for example, adding or removing a person, you can charge up to £50 for the work involved in updating the agreement. If the costs are higher, you should give evidence to a tenant that any fee charged above £50 is reasonable.
Payments when a tenant wants to end a tenancy early
If your tenant does not give the correct amount of notice to end a tenancy, you can charge a fee. This cannot be more than the amount of rent that you would have received if the tenant gave the right amount of notice.
Default fees
You can charge the tenant a default fee if this is included in the tenancy agreement.
You should make the tenant aware of these fees before they sign the tenancy agreement.
You can charge a default fee:
- for the loss of a key or other security device giving access to the property
- for late payment of rent
Replacement keys, security devices or fobs
The tenant is responsible for looking after the keys for the property throughout the tenancy.
You can charge the tenant the cost of replacing a key or other security device.
You must provide evidence in writing to the tenant to show the costs you have incurred are reasonable.
Late payment of rent
Rent must be overdue by at least 2 weeks before you can charge a fee.
The maximum fee rate is 3 per cent above the Bank of England’s base rate. You can only charge a fee on the amount that is overdue.
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)
Equal to 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).
Rent
To be paid after the tenancy agreement is signed by all parties an initial rent payment in advance calendar monthly (based on the calculation of the agreed weekly rent multiplied by 52 weeks and divided by 12 months to equal the calendar monthly 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
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 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 for a one bedroom property, £150.00 for a two bedroom property, £162.00 for a three bedroom property, £228.00 for a four bedroom property and £276.00 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.
References
If the tenancy is going to be in your name then we will require the following references, which must be addressed to us, and we must be in receipt of the originals prior to you taking possession of the property:
- For each Tenant references and credit check provided by Diligent Services a specialist tenant referencing service we will supply the applications forms for you to complete
- An employer's reference, Bank reference for which your bank will charge their own fee to you as their customer
- Previous Landlord or managing agent, Solicitor and/or Accountant
- Or a character reference from a professional person (not a relative).
All references will be sent to the Landlord for approval prior to the commencement of the tenancy. Please contact your referees to let them know the need for an immediate response.
RIGHT TO RENT Under Section 22 of The Immigration Act 2014 the law introduces from 1st February 2016, a requirement for all Landlords of private rental accommodation in England to determine whether occupiers have the right to live in the UK legally by carrying out Right to Rent checks before a new tenancy agreement is granted.
This applies to All adult occupants aged 18 and over with tenancy agreements starting on or after 1st February 2016, that they intend to occupy as their only or main home.
- You must check that a tenant or lodger can legally rent your residential property in England.
- Since 1 July 2021, EU, EEA and Swiss citizens have had to evidence their rights in the UK, including their right to rent, either using their online immigration status (eVisa) or with a physical immigration document.
- The immigration system is digitising – we are moving away from a system reliant on people proving their rights through physical documents that are sometimes decades old, to a streamlined system that is digital by default.
- You can use the Home Office online checking service on GOV.UK to view the immigration status of existing and prospective tenants. The service is simple, secure, free to use and enables checks to be carried out by video call. You do not need to check physical documents if you use the online checking service, as information about an individual’s right to rent is provided in real time directly from Home Office systems.
- From 6 April 2022, the right to rent online checking service must be used for biometric residence card and permit (BRC/P) holders, as they will no longer be able to use their BRC/P for a?manual?right to rent check, even if it shows a later expiry date.
- Also from 6 April 2022, landlords will be able to use certified Identification Document Validation Technology (IDVT) service providers to carry out digital checks on behalf of British and Irish citizens who hold a valid passport (or Irish passport card).
- You could face a civil penalty if you rent your property to someone who does not have the right to rent, if you have not carried out a correct right to rent check.
- You should not discriminate when conducting right to rent checks. See the code of practice for landlords for more information.
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View and prove your immigration status: get a share code https://www.gov.uk/view-prove-immigration-status
Guarantor
In some cases where a guarantor required reply is received or the above references are unobtainable, the Landlord may be willing to accept a Guarantor. The Guarantor will have to sign the tenancy agreement and will be acting as security. The Guarantor also will be liable for all the terms contained therein. It will be necessary to take up references on the Guarantor.
Company Lettings
- In the event that your employer is undertaking the tenancy on your behalf, we will require references from the following:
- References and credit check provided by Diligent Services a specialist tenant referencing service we will supply the applications forms for both you and your employer to complete
- The company bankers, Solicitors, Accountants and Trade references.
- A copy of the Annual Report may need to be supplied and/or a company search may be carried out.
Written confirmation from an authorised representative of the company will be required to confirm that you are the proposed occupants and the status of your employment.
Tenancy Agreements
The tenancy agreement forms a legally binding contract between the Landlord and the Tenant and both parties have to abide by the terms and conditions of the tenancy agreement. Please read the tenancy agreement carefully and make sure you understand the clauses contained therein. Whilst we will be happy to explain the tenancy agreement to you, if you have any queries you should consult a solicitor.
In the main there are two forms of tenancy:
Assured Periodic Tenancy (APT) for a Private Tenant – Housing Act tenancy The tenancy is taken in Tenants own name or names, this type of agreement is a Housing Act tenancy called an Assured Periodic Tenancy known as an (APT) that replaces the Assured Shorthold Tenancy (AST) from 01/05/2026 under the Renters Rights Act 2025. The property must the Tenant’s only or principal home. This means that they continue indefinitely until ended by a notice from the Tenant or a notice from the Landlord for specific reasons. Link to information on the Renters Rights Act 2025 https://www.gov.uk/government/publications/guide-to-the-renters-rights-act/guide-to-the-renters-rights-act
Common Law Tenancy – non Housing Act tenancies
If the rent exceeds £1,923.08 per week - £100,000 per annum the tenancy agreement cannot be an Assured Periodic Tenancy (APT)) as it will fall outside the Housing Act. This tenancy is as a Common Law tenancy - non Housing Act tenancy this is also the case if the Landlord is a resident Landlord, the Tenant has another main or principal home, or the letting is to a company as a Company Let. If your employer is undertaking the tenancy on your behalf, an agreement is drawn up that identifies the company as the Tenant and you as the occupant. The agreement must be signed by an authorised signatory of the company, which cannot be the occupant. We will request a letter of intent from the company.
Stamp Duty Land Tax
As from 1st December 2003, the liability for paying any Duty due, and for completing and submitting the relevant declaration form (SDLT1 and SDLT4) to the HM Revenue & Customs will be the Tenants - as that is the person to whom the tenancy/lease is granted. (This is the equivalent to the purchaser being liable to pay stamp duty when they buy a property).
Neither a Landlord nor an Agent has a liability for SDLT, or for submitting the declaration forms.
To find out how much Stamp Duty you would be required to pay, please contact Paul Lee & Company, who will advise you of the amount. The figure is based on a computation known as Net Present Value (NPV) which includes a discount percentage (the Temporal Discount Rate) set out in the Finance Act. If the NPV computation provides a figure in excess of £125,000 then SDLT is due to be paid based upon 1% of the difference between £125,000 and the NPV amount. Where the NPV amount is less than £125,000 then no SDLT is due. ( There are different arrangements for "Premium Leases" and the calculation of SDLT on these can be explained if required ).
Rent
Rental payments are due calendar monthly in advance in accordance with your tenancy agreement. These payments should be by bank standing order. It is imperative that the payments are issued by the Tenant whose name is on the agreement and cleared funds are received by the rent due date.
TENANCY / SECURITY DEPOSIT
A tenancy deposit is money held by the Landlord (or agent acting on the Landlord’s behalf) as security during the period of the tenancy and reserved for any damages or defaults on the part of the Tenant.
This is held for the duration of the tenancy and is equal to either five or six weeks rent please refer to above heading INITIAL MONIES DUE - A tenancy deposit, also known as a security deposit. It is used to offset any costs, which may be incurred as a result of damages or defaults on the part of the Tenant during the tenancy. Normally as the Agent acting on Landlord’s behalf we hold the deposit and it is held as Stakeholder in the Paul Lee & Company Clients Account. Depending on the type of tenancy agreement and current Housing Act legislation a Landlord or his Solicitor can also hold the deposit. 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.
From 1 May 2026, under the Renters’ Rights Act 2025, tenancies in England are Assured Periodic Tenancies (replacing Assured Shorthold Tenancies), and the tenancy deposit protection requirements continue to apply. Our tenancy agreement includes the necessary clauses that are required by the TDS.
Paul Lee & Company as existing ARLA Propertymark members joined the Tenancy Deposit Scheme (TDS) which is an insured scheme run by The Dispute Service for Letting Agents www.tenancydepositscheme.com. They are one of the three scheme administrators appointed by the Government. The other two schemes offer both insured and custodial schemes My Deposits https://www.mydeposits.co.uk and DPS https://www.depositprotection.com.
Interest
Any interest earned on monies that are held in the Paul Lee & Company Clients Account, will be retained by Paul Lee & Company.
Inventory
Prior to the commencement of a tenancy, the Landlord or an independent professional inventory clerk will have prepared a detailed report. The report is referred to as an "inventory" and will not only include the condition of the décor but also list every item down to the last knife and fork. At your costs you may wish for the inventory clerk to be present when you move into the property to check the inventory with you. It is in your interest to check the inventory thoroughly in order to ensure discrepancies do not arise at a later date. You will be expected to sign a declaration confirming the condition of the property and all the items listed have been seen.
Utilities
The terms of the tenancy require the Tenant to transfer into their names and pay for the electricity, gas, telephone, broadband (wifi) charges and water. It is important that you contact the utility companies at least five working days prior to the commencement of tenancy to avoid the services being disconnected. You may be required to pay a deposit to the utility companies if you have not been a previous customer.
Council Tax
This is a local authority tax levied against the occupants of residential premises. It is a legal requirement for you to advise the local authority of your occupancy and to pay the sum demanded. Charges are assessed according to the status and number of occupants in each property.
Television Licence
It is the Tenants responsibility to register for a television licence and pay the licence fee for any television set in the property. Non-payment of this fee is an offence and carries a large fine.
Insurance
The Landlord is responsible under the terms of the tenancy agreement to provide buildings and contents insurance; he is not liable for your own possessions.
Pets
From 01/05/2026, you have the right to request to keep a pet. Your landlord cannot unreasonably refuse your request. If they refuse, they must inform you in writing, and should tell you the reason why, for example a lease restriction for a Freehold property. They will need to consider each request on a case-by-case basis. You can challenge the landlord’s decision in court. For Assured Periodic Tenancies (APT) that fall within the Housing Act where The Tenant Fees Act 2019 applies in respect of the tenancy deposit amount for Assured Periodic Tenancies (APT). For tenancies that fall outside of the Housing Act the tenancy deposit can be agreed at higher amount if required, typically equal to eight weeks rent.
Property Management
Paul Lee & Company may have found you your new home, but may not be managing the property during the term of the tenancy. You will be informed as to who will be managing the property at the commencement of the tenancy. When Paul Lee & Company act as managing agents any problems you have relating to the property must be reported to us immediately. This will ensure that the matter is dealt with in line with the Landlord's instructions.
Renewals, Extensions and Periodic Tenancies
For an Assured Periodic Tenancy (APT) for a Private Tenant – Housing Act tenancies will write to the Landlord three months prior to the twelve months anniversary of the tenancy to discuss the annual rent review and to serve the Section 13 notice to the Tenant. We will send copies of the relevant documents to the Landlord and Tenant for their records. For all Assured Periodic Tenancies (APT) and if we hold the deposit as stakeholder that is registered in the TDS this will include the renewal of The Dispute Service TDS re-registration of the deposit. For a Common Law Tenancy – non-Housing Act tenancies will write to the Landlord and the Tenant prior to the expiration of the tenancy to ascertain if both parties wish to renew or extend the tenancy for a further fixed term. We will then re-negotiate the terms of the renewal or extension between the parties and send out the relevant documents for both the Landlord and Tenant to sign, signed copies will be sent to the Landlord and Tenant for their records.
Termination of the Tenancy
If you intend to vacate at the term end an inventory checkout will be arranged the cost of which is paid for by the Landlord for an Assured Periodic Tenancy (APT) that fall within the Housing Act where The Tenant Fees Act 2019 applies. If the tenancy is not a Housing Act tenancy then the Tenant will liable to pay for the inventory check out (current charges listed below). You will be advised when the inventory clerk will do the checkout report and what is expected of you prior to their visit. The property and garden (if any) should be ready to hand over in the same state and condition at the start of the tenancy. We make this point as costs by way of deduction from the tenancy deposit can be incurred if it is necessary for the Landlord or the Agent to employ the services of professional cleaners and gardeners. All keys must be given to the inventory clerk at the time of the checkout and you will have no further access to the property. You must ensure that all utility accounts, council tax and television licence charges are paid up to date (the end of the tenancy date) and the accounts are closed in your name.
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.
It is hoped that all the above information will assist you in moving home, however should you require any further information please do not hesitate to contact us.
All information is provided in good faith. It does not replace the advice of a qualified legal advisor/Solicitor.
Paul Lee & Company is an ARLA Propertymark Member.
Client Money Protection (CMP) provided by: ARLA – Association of Residential Letting Agents.
Propertymark Client Money Protection Certificate PDF
Independent Redress provided by: TPO – The Property Ombudsman.
If you have any further questions, or want to register, please contact us here
