Permitted payments for new Assured Shorthold Tenancies (ASTs) signed on or after 1st June 2019
When you have agreed on the property of your choice, HomeSmart Lettings will provide you with a “Contractual Agreement to grant a Tenancy” (this is not an actual Tenancy Agreement) This helps explain not only the next stages of your application but any permitted payments which are due before you sign your Tenancy Agreement and any which may become payable during and after the tenancy. This will also include confirmation of the agreed rent and the deposit.
Holding deposit (per tenancy): One weeks rent This is to reserve a property. Please Note: This will be withheld if any relevant person (including any guarantor(s)) withdraw from the tenancy, fail a Right-to-Rent check, provide materially significant false or misleading information, or fail to sign their tenancy agreement (and / or Deed of Guarantee) within 15 calendar days (or other Deadline for Agreement as mutually agreed in writing).
Security deposit (per tenancy, rent under £50,000 per year): Five weeks rent This covers damages or defaults on the part of the tenant during the tenancy.
Security deposit (per tenancy, rent of £50,000 or over per year): Six weeks rent This covers damages or defaults on the part of the tenant during the tenancy.
Unpaid rent: Interest at 3% above the Bank of England Base Rate from Rent Due Date until paid in order to pursue non-payment of rent. Please Note: This will not be levied until the rent is more than 14 days in arrears.
Lost key(s) or other security device(s): Tenants are liable to the actual cost of replacing any lost key(s) or other security device(s). If the loss results in locks needing to be changed, the actual costs of a locksmith, new lock and replacement keys for the tenant, landlord any other persons requiring keys will be charged to the tenant. If extra costs are incurred there will be a charge of £15 per hour (inc. VAT) for the time taken replacing lost key(s) or other security device(s).
Variation of contract (tenant’s request): £50 (inc. VAT) per agreed variation To cover the costs associated with taking landlord’s instructions as well as the preparation and execution of new legal documents.
Early termination (tenant’s request): Should the tenant wish to leave their contract early, they shall be liable to the landlord’s costs in re-letting the property as well as all rent due under the tenancy until the start date of the replacement tenancy. These costs will be no more than the maximum amount of rent outstanding on the tenancy.
Fees for Company Lets
Application Fee £400 (inc VAT) Referencing (identity, immigration and visa confirmation, financial credit checks, obtaining reference from current or previous landlords and any relevant information to assess affordability) as well as contract negotiation (amending and agreeing terms) and arranging the tenancy agreement.
Renewal Fee £120 (inc VAT) Contract negotiation, amending terms and updating your tenancy agreement during your tenancy