TENANTS CHARGES & FEES
Initial Payment on Account
Once an offer has been accepted by the landlord this will be subject to contract and receipt of satisfactory references and original acceptable documents that allow the prospective tenant(s) to live in the UK. As a show of intent to rent the property, an initial payment on account will normally be required equivalent to two weeks of the proposed rental. This initial payment is non-refundable in the event that the prospective tenant withdraws their application to proceed with the proposed tenancy before the agreed commencement date; or does not have the right to rent in the UK; or the reference checks prove unsatisfactory. Should the Landlord decide not to proceed with the proposed tenancy the payment will be refunded. If the tenancy proceeds this initial payment on account will be deducted from first instalment of rent together with deposit payable under the terms of the tenancy agreement.
Administration Fee (Per Tenancy)
In the event of receipt of satisfactory references and original acceptable documents that allow the prospective tenant(s) to live in the UK the tenant (or joint tenants) will be charged a single administration fee of £150 plus VAT (£180 VAT inclusive) for the initial term of the tenancy due at the time of payment of the first instalment of rent and deposit to cover the following:
- Obtaining comprehensive references for each and every tenant to confirm the financial ability and suitability as a tenant. For an Assured Shorthold Tenancy we will usually require a reference from the tenant’s bank, the employer, a previous landlord/agent and/or character reference. Excel Property Services will apply for these directly provided we are given the necessary consent;
- Obtaining comprehensive references for each and every guarantor to be named on the Tenancy Agreement, where applicable;
- Performing right to rent checks;
- Negotiating and agreeing the terms of the proposed tenancy with the landlord;
- Preparing the appropriate Tenancy Agreement;
- Arranging for the landlord and tenant(s) to sign a separate copy of the Tenancy Agreement, which are then exchanged. Once all parties have received the other parties’ signed copy the tenancy is concluded;
- Registering the landlord/tenant(s) details and arranging for the protection of the deposit in a Government Approved Scheme (not applicable for corporate/contractual tenancies);
- Providing the tenant(s) with specific information regarding the protection of their deposit, known as the Prescribed Information;
Third Party Agency Reference Charges
In the event that the Landlord specifically requires the use of a third party reference agency the agency’s charges will be passed directly onto the tenant. Excel Property Services do not make any additional charges for this.
Rent is payable in advance for each tenancy. As a minimum, the tenant(s) will be required to pay the first month’s rent prior to the commencement of the tenancy, although the amount payable may differ dependent on the agreed term of the tenancy.
The deposit sum is usually the equivalent of six weeks rent, payable on or before the signing of the Tenancy Agreement. In the case of an Assured Shorthold Tenancy the deposit is protected in a Government Approved Scheme.
The charges for the Inventory Check-out and preparation of any Schedule of Dilapidations at the end of a tenancy are usually borne by the tenant. The inventory company charge will be passed directly onto the tenant and is based on a sliding scale dependent upon the size and content of the property. Excel Property Services do not make any additional charges for this.
Renewal Administration Fee
8 – 10 weeks prior to the expiration of the initial term of the tenancy the Excel Property Services will contact the landlord and tenant to review the tenancy arrangements. If both parties are in agreement to renew the tenancy we will:
- Negotiate and agree the terms of the proposed tenancy with both parties;
- Prepare the appropriate agreement for the renewal of the tenancy for a further fixed term;
- Arrange for the landlord and tenant(s) to sign a separate copy of the Renewal Agreement;
- Arrange for each party to receive the other parties’ signed copy of the agreement;
- Renew the protection of the deposit in a Government Approved Scheme (not applicable for corporate/contractual tenancies) for a new fixed term;
- Provide the tenant(s) with specific information regarding the protection of their deposit, known as the Prescribed Information;
The tenant (or joint tenants) will be charged a single administration fee of £87.50 plus VAT (£105 VAT inclusive) for the first renewed term of the tenancy, due at the time of signing of the Renewal Agreement. The same fees will apply for any subsequent renewed terms following the expiration of the first renewed term.
Early Termination Fee
Should the tenant(s) request early termination prior to a fixed term (outside the terms of the Tenancy Agreement), the tenant(s) will remain liable to pay rent and any other charges payable under the Tenancy Agreement until the date the property is either re-let; the fixed term expires; or the date any break clause can be exercised by the tenant(s).
In addition the tenant(s) will be charged an Early Termination Fee (to cover the costs of re-letting the property) at 10% plus VAT (12% VAT inclusive) of the remainder of the rent until the fixed term expires or the date any break clause can be exercised by the tenant(s).