As a tenant, arriving in London for the first time, you may not be familiar with the rental market trends and relevant legal regulations.
Faced with a vast amount of rental information, it can be challenging to navigate. To help you better understand the details of the renting process in the UK and assist you in finding suitable accommodation in London, we’ve prepared the following leasing guide for you to reference:
Expenses for Renting:
Rent in London: rents are generally quoted weekly, but the payment is calculated monthly. The monthly rent is calculated as follows:
Viewing and Offers:
Based on your budget and requirements, we will filter property listings for you, accompany you on viewings, provide clarifications, and assist you until you choose a property and make an offer.
After the landlord accepts the offer, you need to pay one week's rent as a reservation deposit and accept the tenancy terms. If you change your mind midway or if your background and credit check do not pass, the holding deposit you've paid will not be refunded.
Background Checks:
Background and affordability checks, also known as credit checks, are conducted by third-party independent agencies. You need to provide required documents for identity verification and information collection on your social background, employment history, and past rental experiences.
Landlords and agents will evaluate this information to decide whether to rent the property to you. If you have a guarantor or a company providing financial guarantee, they will undergo background and credit checks too. The review period is generally 2-4 working days.
Signing the Tenancy Agreement:
After confirming lease details, you will receive a legally binding tenancy agreement. The contract will specify the lease term, rent payment details, deposit handling procedures, and rights and obligations of both tenant and landlord. It’ll also include the procedures for any unexpected or unforeseen situations.
Deposit:
Before moving in, you’ll be required to pay a deposit equivalent to 5-6 weeks' rent and the first stage rent as specified in the contract. Following UK law, we’ll deposit the money in an officially regulated institution to ensure the interests of both tenants and landlords are fully complied with.
Inventory Check and Move-In:
At the start of the lease, we’ll arrange for an independent professional inventory check company to assess the overall condition of the property and its furnishings. A comprehensive report will be provided to both you and the landlord for verification and archival purposes.
At the end of the lease, you’ll be required to return the property in its original condition according to the contract and the previous inventory check records. The deposit refund amount is determined based on the report from the third-party check company.
Tenant Responsibilities:
After moving in, you are personally responsible for registering various bills such as water, electricity, heating, internet and TV fees with the respective companies and, in doing so, determining payment methods. Additionally, it’s important to carefully read and strictly adhere to the tenant rules in the lease agreement to avoid any unnecessary losses.
How to Verify if a Rental Agency is Legal:
In the UK, rental agencies generally need to be registered with ARLA to ensure that a tenants' rent is regulated and protected, and agencies comply with the latest legal requirements. This registration also indicates that agencies must undergo regular training to update their professional skills and experience.
What Does ARLA Stand For?
ARLA stands for the Association of Residential Lettings Agents. For more information about this organisation, please click here. Crown Home Buying & Letting is also a registered member.
Best Methods to Find Rental Properties:
There are many well-established online search platforms to find rental properties, such as Rightmove or Zoopla. In addition, you can find properties through any agency website and their social media pages. Visit the Rightmove page for the Crown Home Buying & Letting by clicking here.
How Long Can I Rent the Same Property?
Lease agreements generally range from 6 months to 36 months, depending on your individual circumstances and the agreement reached with the landlord.
What is a Termination Clause, and Can I Add It to the Contract?
A termination clause allows both parties to terminate the lease agreement with notice before the formal lease expires. Tenants can request to add this clause, but it may affect the success rate of the tenancy application.
Can Students Rent Properties?
Yes! Students are usually required to pay the rent in full before the lease term or choose a guarantor residing in the UK.
What is a Guarantor?
A guarantor is anyone other than the tenant who agrees to pay the rent if the tenant cannot. The guarantor must co-sign the lease agreement, and their annual income (pre-tax) must exceed 36 times the monthly rent.
Once I Find a Suitable Property, How Do I Confirm the Lease?
Once your offer is accepted, you need to pay a one-week deposit, which will be offset against your first month's rent.
After confirming the lease, will I be charged any additional fees, and when should these fees be paid?
If your lease falls under Assured Shorthold Tenancy, you only need to pay 5-6 weeks' deposit and the first month's rent. This money needs to be paid before the lease begins and may be required when signing the lease agreement.
What is the Information Check, and What Documents Do I Need to Provide?
You will be required to fill out a referee application form and provide detailed personal information, including your occupation, residence, and proof of financial history.
Where Will My Deposit Be Stored?
According to the 2004 Housing Act, every landlord and agency must register and store the deposit in an officially authorised deposit scheme. This ensures the deposit is protected by a verified third party and will not be returned to either party before mutual agreement. The most common three schemes are Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), and My Deposit.
If Repairs are Needed in My Apartment, Who Should I Contact?
If your property is managed by an agency, you should obtain the property manager's contact details, including emergency contact information outside of working hours. They will assist you with any issues during the lease.
However, if your property is managed by the landlord, you should get the landlord's contact details, and any property issues can be directly addressed with the landlord.
What is the Check-In and Check-Out Facility Inventory?
Before the lease begins, an inspector will produce a report detailing the specific condition of all items, fixtures and other facilities in the property. Similarly, at the end of the lease, a check-out report will be issued to identify any damages to the property.
What Should I Do When the Lease Ends?
You need to ensure the property is as clean as it was at the start of the lease, and all items should be returned to their original places. It's advisable to refer to the facility inventory received at the beginning of the lease for comparison.
When Can I Retrieve My Deposit?
If the agency or landlord needs to deduct a portion of the deposit, they must notify you within 10 days. You may need to wait longer to receive the full deposit.
Watch a video about what to expect when renting with Crown Home Buying & Letting
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