Tenant Payments & Default Fees Explained

Since starting River Lettings Ltd in 2012, pre any form of legislation, we have always openly published information relating to any fees or charges a Tenant could be liable for. This latest update, effective from 1 June 2019, reflects the changes arising as a result of the Tenant Fees Act 2019. All amounts chargeable by River Lettings Ltd include VAT at the prevailing rate.
 

Holding Deposit

Equivalent to 1 weeks rent, calculated as the monthly rent x 12 months, then divided by 52 weeks.

Payment of the holding deposit reserves the Property and removes it from the market. During this time, you will be referenced, as will any Guarantor. Referencing will not commence, nor will the Property be removed from the market until the holding deposit has been received. We, on behalf of the Landlord, or the Landlord directly, reserve the right to refuse to reject any application prior to the commencement of referencing. Should this occur, any holding deposit received will be refunded in full.

Payment of a holding deposit creates a legally binding conditional contract between all prospective tenants (“you”) and the Landlord. Under this contract you agree to be bound to provide honest representations as to

  • Ensure that you can afford the Property. The combined household income before tax MUST exceed the rent required above. Please note, some types of benefits may not be allowable. Please discuss this before starting your application so we can ask our reference partners if they would allow that type of payment.
  • Declare – in full - any County Court Judgements, IVA Agreements or Bankruptcy orders. i.e any debt that has resulted in Court action or someone negotiating debt with creditors on your behalf that has resulted in a managed payment arrangement. If you are not sure, you can request your credit file from organisations like Equifax or the Register of Judgements for a small fee.
  • Not provide us or our credit referencing partners with any false or misleading information.
  • Carry out reasonable requests made by ourselves or our referencing partner.
  • Provide any information to support your application for tenancy in a timely manner. This information may include, but not be limited to:
    • Proof of ID
    • Proof of residence (up to three years)
    • Proof of income and / or employment
  • Provide us with evidence that you have the right to live in the United Kingdom.
     

Deadline for Agreement

The deadline for agreement is the 15th day after which the holding deposit has been taken. i.e. you will be expected to have passed referencing and entered into and signed a tenancy agreement (even if the tenancy is due to start at a later date).

In exceptional circumstances, for example where an applicant can prove they have tried to obtain information from a third party, such as an employer, but the information is delayed, the deadline for agreement can be extended by mutual agreement. If extension is not agreed, the application shall be terminated, and the Property remarketed.

We are not required to place holding deposits into a tenancy deposit scheme, unless you have specifically request us to off-set the move-in balance upon the signing of the tenancy agreement.
 

Refunding the Holding Deposit

The holding deposit will be returned to you with 7 days of:

  • You and the Landlord signing a tenancy agreement. If you are moving in within 7 days of the deadline for agreement date, you may ask us in writing to deduct this from the move-in balance; or
  • The Landlord choosing to withdraw from the proposed agreement; or
  • The deadline for agreement passing without a tenancy having been entered.

Unless a tenancy is offered and signed, the holding deposit will not be refunded where you (or any applicant on the application):

  • Provide false or misleading information (whether knowingly or unknowingly) which we and the Landlord can reasonably take into account when deciding to let the Property – this can include your behaviour in providing the false and misleading information or declaring that you do not have a CCJ, IVA or Bankruptcy (which we later find to be untrue).
  • Fail the right to rent check
  • Decide not to proceed with the tenancy (i.e. withdraw your application) - unless we or the landlord impose a requirement that is illegal, or act in such a way that would cause you to not want to enter into a tenancy (e.g. seeks an unfair in your tenancy or behaves in a threating or harassing manner).
  • Fail to take steps to enter into a tenancy agreement (and we or the Landlord have taken the reasonable steps required to enter into a tenancy).
     

First Month Rent and Tenancy Deposit

Once the reference process is complete we will ask you to pay the first month’s rent in addition to a five-week tenancy deposit (the “move-in balance”). The tenancy deposit is calculated in the same way as the reservation deposit.

The move-in balance must be received in cleared funds no later than two working days prior to commencement of the tenancy. Any later and we cannot guarantee you will move in on the day you choose. If you do not move in on the start date of the tenancy due to your own error AND you have signed a tenancy agreement, you will remain liable for the rent from the start of the tenancy.

During the tenancy you will be required to pay the rent monthly in advance no later than the rent due date. For example, if the rent is due on the 15th of the month, we would suggest you pay it to us on the 13th of the month to ensure your rent is not late. Persistent late payment of rent can lead to legal action, including eviction from the Property.

Unless the Landlord chooses to self-register the deposit with one of the approved deposit registration schemes, your deposit will be held by and registered through the Deposit Protection Service. Please visit the DPS website for more information.
 

Gas, Electric, Water, Council Tax, Telephone, Internet & TV

Unless expressly advised in writing prior to commencement, throughout the term of the tenancy, including any or periodic or fixed term renewal, you will remain liable for the cost and responsible for the payment of all supplied utilities, internet services, council tax, the television licence, satellite and/or cable services.
 

Default Fees

An automatic default fee shall apply where:

  • The rent is 14 or more days late; or
  • You have lost a key or security device requiring replacement.
     

Amendment to a Tenancy Agreement

We will normally charge you usually not more than £50 including VAT, for amending the tenancy documentation where actions or requests by you necessitate an amendment to the tenancy agreement. Typically this would be for the removal or addition of a Tenant or Permitted Occupier, or change of Guarantor, or any amendment to the tenancy Agreement requested by you.

You can lawfully be charged more than £50 to recover any reasonable costs providing it is possible to demonstrate these additional costs to you.
 

Early Termination of a Tenancy by ALL Named Tenants

We will charge you a percentage of the Landlord’s marketing and referencing costs involved in replacing you, the amount based on the number of months remaining on your tenancy and the number of tenants to be replaced.

Example:

You signed a 12-month tenancy with a rent of £850 per month, but after 3 months, you decide you all want to leave the Property. There are two tenants on your tenancy.

New tenants are found to take over from the 4th month of your tenancy, effectively meaning that you are leaving the Property eight months early. They are going to pay £875 per month, and there are four of them.

You would be charged 8/12ths of our standard landlord marketing charge of up to half a month’s rent + VAT based on your existing rent of £850. Plus, you will be charged 8/12ths of the total cost involved in referencing the replacement tenants at £30 including VAT but limited to the number of tenants in your tenancy, this example being two.

Illustration (based on above example), with

Half a month rent £425 + VAT £85
Total £510

8/12ths of £510 = £340
8/12ths of two references = £40

Total to Pay £380 including VAT 

You will still have to pay the rent, council tax, and all utilities up to the day before the new tenants move in to the Property. Any liability is limited to any time where a break clause or normal notice can be legally relied upon.
 

Client Money Protection

We hereby confirm that River Lettings Ltd that we have Client Money Protection insurance in place, arranged through the United Kingdom Association of Letting Agents (UKALA), and that client money is held in managed designated client accounts held with NatWest Direct Business Banking, sort code 60-24-77.
 

Consumer Redress Scheme

We hereby confirm that River Lettings Ltd is registered with The Property Redress Scheme, a voluntary redress body to resolve complaints against residential estate agents and residential letting agents.