Holding Deposit (per tenancy) – One week’s rent
The holding deposit that has been paid by the Applicant(s) in relation to the Rental Property stated above. It is agreed between the Applicant(s) and Agent that the Holding Deposit can be held for a maximum of 15 calendar days or until the commencement of the assured shorthold tenancy, whichever happens first.
Where an assured shorthold tenancy has been agreed, the Applicant(s) and Payee (if applicable) agree that the Holding Deposit can be used for part payment of the first month’s rent/deposit required under the assured shorthold tenancy.
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).
Deposit
Deposits for tenancies where the annual rent is under £50,000 are limited to the equivalent of 5 weeks rental. (This covers damages or defaults on the part of the tenant during the tenancy)
Deposits for tenancies where the annual rent is £50,000 or more are limited to the equivalent of 6 weeks rental. (This covers damages or defaults on the part of the tenant during the tenancy)
Unpaid Rent
Interest for the late payment of rent at a rate of 3% above the Bank of England’s base rate from the rental due date until rental paid in full. This will not be charged until rental is more than 14 days in arrears
How to calculate interest on the rent
The calculation is (rent amount in arrears) x 0.0375 / 365 x (the number of days since the arrears began).
For example, a tenant misses a rent payment of £500 on 1st January and a further payment on 1st February, on February 28th the tenancy ends and the landlord intends to charge for payment.
£500 for the rent amount for the first 31 days £500 x 0.0375 = £18.75 £18.75/365 = 5p per day 5p x 31 = £1.55 for the first 31 days of arrears at that total.
£1000 = rent amount in arrears for the last 27 days
£1,000 x 0.0375 = £37.50 annual interest £37.50 / 365 = 10p per day
27 days have passed since the tenant went into arrears so 10p x 27 = £2.70. £2.70 + £1.55 = £4.25 in arrears can be charged for the late rent.
Lost Key(s) or other Security Device(s)
Payment of the invoice cost for the reasonably incurred costs for the loss of keys/security devices. For the loss of keys, landlords are allowed to charge a reasonable cost supported by evidence in writing.
Changes to Tenancy (Tenant’s Request)
Where tenants have requested a change in the tenancy (such as swapping tenants, etc.) the landlord/agent may charge a fee of £50 (inc VAT) per agreed variation or any reasonable costs incurred if higher. (subject to providing written evidence)
Early Termination (Tenant’s Request)
If a tenant wishes to leave their contract early, the tenant will be liable to the landlord’s costs in re-letting the property, whilst remaining liable for all rent due under the tenancy until the commencement of the replacement tenancy. These costs will be no more than t the equivalent of the rent outstanding on the tenancy.
Please do not hesitate to contact our team to discuss any of the above information.