Rental properties can go quickly, so if you are very keen on a property, you should consider putting down a holding deposit as soon as possible.
References
Landlords want to protect their property, so naturally they want to "check out" any prospective tenants before they move in. These references and other checks will normally be arranged by the letting agent. In most cases, you will be asked to pay an administration fee and complete the relevant paperwork which gives your consent to the agent to check your references. This fee is usually non-refundable. If you fail the reference check, you may not be entitled to your money back - check first before you make any payment. Passing the reference check will normally allow you to proceed to the next stage of signing the tenancy agreement and agreeing your move in dates.
- Referees usually include the following:
- Previous landlords - you will normally need to disclose where you have lived during the past 3 years
- Your bank - bank name, address, your account number, sort code, account name
- Current employer - your title, salary, payroll number, a contact at work, and name of any previous employer
- Credit Checking agency (usually commissioned by letting agency).
If the landlord or letting agent considers you to be a 'risky' prospective tenant, (for example if you are self-employed with an irregular income), you may be asked to provide a Guarantor - someone willing to accept the financial and legal risk of you defaulting on your obligations whilst living in rented accommodation. A guarantor covers the monthly rental if you fail to pay, and agrees to pay damages, costs and expenses to the landlord if you don't observe your obligations to keep the property in good order.
The Deposit
The deposit is a sum paid by the tenant to help protect the landlord in the event of damage being caused at the property by the tenant or non-payment of rent.
- Usually a deposit is equivalent to 4-8 weeks of rent.
- The deposit is held throughout the term of the tenancy. The Housing Act 2004 introduced new legislation to protect tenant's deposits and came into force on April 6th 2007. For more information on the arrangements for holding deposits and Tenancy Deposit Protection, the following information which is provided by ARLA may be helpful.
- If you return the property and any contents in the exactly the same condition in which you received it, you should get back the original deposit payment. The tenant is not usually entitled to any interest on the deposit.
The deposit is not to be confused with the "first month's rent", which is also payable in advance.