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A Guide to Fees Charged by Letting Agents and Landlords

Once you’ve found your perfect property there are a few steps the landlord will need to take to get the tenancy set up correctly.

There are no admin fees when you let a property through us.

Here’s a quick guide to those services:

(NB: For properties in England, Scotland and Wales tenant fees, other than rent a refundable deposit and list of permitted payments, are prohibited as of June 1st 2019.)

Tenant Referencing

  • Before you move into the property it is highly likely you will be referenced. This may include a full credit check, affordability check, written employer and previous landlord reference.
  • If it appears on paper that affording the rent might be a struggle then you may be required to provide a guarantor. This is someone that can legally pay the rent if you are in arrears.
  • Typically you shouldn't pay more than 30-40% of your monthly income on your rent, otherwise your financial situation may become difficult. Do your research and make sure the rent is affordable before you commit.

Holding Deposit

  • The landlord may ask for a holding deposit to secure the property and take the property off the market.
  • The holding deposit should usually be no more than the equivalent of 1 week’s rent. This amount should be taken off the first rental payment or refunded as a lump sum when you have successfully passed referencing and the tenancy begins.
  • The terms of the deposit should be clear to both parties, including under what circumstances it would and wouldn’t be returned (for example, if you decide not to go ahead with the property or fail references due to giving false information).
  • Always get a receipt and make sure you have your landlords email, mobile and home address at this stage. You may also want to ask to see the landlord’s photo ID.
  • Do not hand over any money before you see the property and avoid taking cash to the viewing itself.
  • Make sure your landlord registers your deposit with a deposit protection scheme within 30 days. This is a legal requirement.

Assured Shorthold Tenancy Agreement

  • The tenancy agreement is the contract between you and the landlord. It typically includes the following:
  • Landlord and tenants' names;
  • The address of the property;
  • Date the tenancy commences;
  • Duration of the tenancy;
  • Rent details: amount payable, how often it should be paid, when it should be paid;
  • Bill expectation: are bills included, if so which ones;
  • Notice period
  • Landlord and tenant rights (such as the landlord's responsibility to keep the property habitable, and the tenant's responsibility to keep the place clean)

Inventory Checks

  • This is one of the most important documents of the tenancy, as it's the one that compares the state of the property before you move in to when you leave the property. Why is it important? Because that hefty deposit you paid at the start of the tenancy is riding on the outcome of the inventory.
  • The inventory details all the items and particulars in the property prior to you moving your stuff in. This includes all furnishings, doors, windows, white goods etc. These items will be accounted for at the start of the tenancy agreement and their condition will be noted. Both you and the landlord should sign off each page of items in the presence of a third party (typically an inventory clerk).
  • The key detail of the inventory is that it is a comparison. It compares the property just before you move in, to just after you move out. It does not judge on the state of the property. If the property was a dilapidated state before the tenancy and has not deteriorated since, then there should be no deduction from your deposit. If however the property was spotless before you moved in and now is absolutely trashed, then you can expect a hefty deduction from your deposit to cover the maintenance costs.
  • The inventory does however allow for "fair wear and tear" - natural damage/deterioration caused by everyday living in the property. If the damage exceeds "fair wear and tear", for example if your cat has torn the sofa to shreds, then you will need to discuss with the landlord the appropriate deduction from your deposit.

Fees later in the tenancy

  • If you chose to extend your stay in the property beyond the initial 12 months, there may be a charge for renewing the tenancy. This would cover any changes to the tenancy agreement (such as additional tenants or a change in terms)
  • Other fees that may be permissible include late fees on rent, loss of keys etc