The tenancy agreement, the deposit and getting ready to move in
So, you’ve passed your References and “subject to contract” you are moving in! What next?
A Tenancy Agreement is a legally binding document that sets out the terms of the tenancy and is drawn up to ensure that the rights and obligations of both tenant and Landlord are adhered to.
It is very important that you read this as soon as you can, so you have ample opportunity to check that you understand all the terms and what your responsibilities will be. Once all parties agree, sign and you pay your move in monies you are legally bound by this agreement until the specified end date.
Hunters Top Tip
The date on which the contract starts will normally become your rent’s due date. If you move in the middle of the month but get paid at the end of the month, you can ask your agent if you can change the “due date” to make it more convenient. You may have to pay some extra days rent to do so but your Agent will help with this.
Hunters Top Tip
Once a move in day has been agreed check with the Agent how and when your rent and/ or deposit should be paid – normally at least 48 hours prior to move in so the funds have time to clear. Ask for the details so you have time to do this.
Once the deposit is paid in full along with the first month’s rent and the tenancy is fully signed, the property is secured and keys can be released to you.
A tenancy deposit is held to give your Landlord protection in case you leave without paying the rent; cause damage to the property and / or its contents or you breach a term of the tenancy. From 1st June 2019 landlords in England are limited to 5 weeks’ deposit for new and renewed tenancies (or 6 weeks if the annual rent is £50,000 or more). Your tenancy agreement will show clearly what the deposit is for and how it will be dealt with under the terms of the Tenancy Deposit Scheme laws, according to what type of Tenancy you have. You will be informed which government approved scheme is being used by your Agent/Landlord and you should get confirmation once the deposit is correctly registered, this should occur within 30 days of you paying it.
Some Agents may offer a Deposit Alternative or Deposit Free option. A Deposit Alternative means instead of paying a traditional five weeks security deposit (or six weeks where the annual rent exceeds £50,000), you pay a fee of one week’s rent +VAT to become a member of a deposit free renting scheme which can significantly reduce the up-front costs. This fee is non-refundable and is not a Deposit. Any outstanding costs or damages will be payable by the Tenant(s) at the end of the tenancy.