Tenants GuideA helpful guide to the process of renting and Chesterton Humberts mandatory charges.

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ContentsChoosing to rent a home 3

Tenant home search process 4–7

Tenancy arrangement 8

Deposit 9

Referencing 10

Guarantors 11

Renewals and Vacates 11

Definitions 12

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Choosing to rent a homeThe popularity of renting as a lifestyle choice is growing and as with any home search, there is much for an individual to consider. Chesterton Humberts can help you focus your search to increase the likelihood of you finding the right place at the right time.

Everybody’s situation differs as does priorities and motivations impacting a tenant’s decisions. However, all renters should consider and be armed with the following information prior to their search;

• Whowillyoubelivingwith(forexample;family,friends,alone)• Location• Budget• DateofmoveinWealwaysrecommendbeingflexibleonfurnishingsandoutsidespace,however, these factors may be of utmost importance to you.

Once you have come to a decision on the above, you will undoubtedly turn to the major property web portals to search for a home. If it is your first time renting, you may also wish to visit citizens advice bureau to research your rights and obligations as a tenant.

You should also register your interest with a regulated lettings agent, which is where Chesterton Humberts can help you!

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1. Decide on budget

3. Register with Chesterton Humberts

4. Viewings

UNDER

OFFER

5. Offer on a Property

6. Agree aContract

7. Prepare for your move

8. Attend the inventory check in

9. Make yourself at home!

2. Decide on area

Tenant Home Search Process

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Decide on budgetWhenlettingviaaregulatedagentyoumustbewillingtosubmittoan independent referencing process. An element of this is to ensure thatyourearningsreflectthatyouarecapableofmanagingtherentalpayments. Please see “References” on page 10 for more information to assist you in deciding on how much you wish to spend. You will also need to consider the administration fees that you may be charged for arranging a tenancy.

Chesterton Humberts Mandatory Charges; Upon agreement of a tenancy Chesterton Humberts charge tenants the following fees;

Administration Fee £185 + VAT

Reference Fee £35 + VAT per tenant

Renewal Administration Fee**Upon a renewal of a tenancy

£80 + VAT

It is common practice to negotiate that the landlord pays for the inventory check-in at the commencement of the tenancy and the tenant will pay for the check-out. Costs may vary, but you can easily get an idea by contacting independent inventory clerks and ask for a quote based on the size and location of the property you seek.

Other charges may apply to specific circumstances which we will highlight where applicable.

Decide on areaYou may be moving within an area you are already familiar with, or, you may be moving to a new location. Internet research is a good way togetthelowdownonanarea(forexampleyoutube.com,purelocation.com)aswellastalkingtofriendsandcolleagues.Themajorityofournegotiators live in the areas they service and will be happy to provide some inside knowledge!

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Register your interest with a regulated Agent / Use the internet to research available properties Having an agent onside could speed up your search, but you should always use a regulated agent. Chesterton Humberts are members of theAssociationofResidentialLettingsAgents(ARLA).Thiswillgiveyou peace of mind that we are held to the highest standards of practices, which we adopt when negotiating a tenancy and drawing up your contract.Wewillregisteryourrequirementsandthoroughlydiscussyoursituation to ensure that all recommended properties meet your needs.

Viewings Wewillmakeeveryefforttoaccommodateyourviewingscheduleshowever,itisimportanttobeflexiblewithyouravailability.Remember,some of the properties you will be viewing will be occupied by tenants who have a say on when viewings take place.

Ask plenty of questions and note any unanswered points the negotiator may have to come back to you on. This way you will know all of your queries have been satisfied before you consider making an offer.

Offer on a PropertyIn a market where demand outstrips supply, there is no getting away from the fact that acting quickly is a huge benefit to getting the property that you want. However, as you are making a huge commitment and about to enter negotiations to arrange a legally binding contract you need to be sure you are making the right decision. Once you have decided to make an offer, Chesterton Humberts will;

1. Ask you to complete a Tenants Terms of Offer Form.2. Request preliminary monies to the sum of the equivalent of

2 weeks rent.Our Terms of Offer Form will detail the terms of taking preliminary monies, such as what it is retained against and for, as well as the particulars of your offer. If you are not sure of anything or require further explanationonanypoints,thenpleaseaskthenegotiatorwhoisdealingwith your offer. All going well, the offer will progress to a tenancy and the preliminary monies sum will be deducted from the initial monies.

Enter into negotiations to secure a tenancy agreement contract between yourself and the Landlord Chesterton Humberts’ trained negotiators will present your offer and liaise with you and the landlord until terms are agreed.

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Agree a contractOur trained co-ordinators will liaise with you in the production of all paper work including the tenancy agreement. They can respond to or field any queries you may have at this stage. Other paper work will include;abreakdownoftheagreedoffer(rent,depositetc);speciallynegotiated clauses, a breakdown of the initial monies. All initial monies must be paid in cleared funds prior to the commencement of the tenancy and we recommend that this is paid by bank transfer. All future rental payment must be received via standing order.

Legaldocumentsrequiringyoursignaturewillbesenttoyouforelectronic signature, so pease ensure you have provided us with your personal email address.

Whereaguarantorisapplicable(see“References”formoreinformation)the paper work will also include an additional agreement for them to sign to establish that the guarantor has been made aware of their obligations.

Prepare for your moveGet packing!

Liaise with Chesterton Humberts to arrange an inventory check inIt is in the tenant’s best interest to attend an inventory check in. They take place prior to any belongings being moved in, so frequently they are either the day before or the day of the move in. Chesterton Humberts uses independent third parties to carry out inventories and therefore werespectfullyrequestthattenantsremainflexibleofthetimetheycan attend, although we are committed to arranging at a time that is best for all parties involved.

Agent will exchange contracts (normally on the day of move in) Please see “Tenancy Agreement” on page 8 for more information.

Wewillinformyouwhowillbemanagingthepropertyduringthetenancy.

WhereChestertonHumbertsdoesnotmanagethepropertyonthelandlords behalf, we will forward you the landlords contact details on the day of move in and they will be your contact throughout the tenancy. Whereweareinstructedtomanageaproperty,wewillgiveyouthedetails of your property manager, who will be your point of contact.

Move in and make yourself at home! Whenitistimetomoveon,seeRenewalsandVacates.

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Tenancy AgreementA tenancy agreement is a legally binding contract between a landlord and tenant to secure tenure of a property for a tenant.

InmostcasesacontractwillbeanAssuredShortholdTenancy(AST)which dictates statutory obligations on the landlord and tenant. Statutory obligations cannot be contracted out of. There is a lot of available information for tenants on the subject of AST, please visit the citizens advice bureau website for information at citizensadvice.org.uk

The tenancy agreement will detail the landlord and tenant obligations. These include, but may not be limited to;

• Rentalpaymentsontimeinthemanneragreed—whichisfromone account by standing order

• Detailsofthedeposit;whoispayingit,whoiscollectingit,whois holding it, how it is being held, why is it being held

• Donotdisturborcausenuisancetoneighboursandprohibitguests from causing a nuisance

• Donotcausedamagetothepropertyandthecontents• Donotmakeunauthorisedalterationstotheproperty• Promptlyreportmaintenanceissuestothelandlordorthe

Property Management Agent• Allowaccessforpropertyinspections(withpriorsufficientnotice).

Generally,propertyinspectionswouldnotexceed4peryear• Transferoftenancyisprohibited—nosublettingetc.• Nottoleavethepropertyunoccupiedforlongerthan28days

withoutinformingthelandlordormanagingagent(thismayimpactthelandlord’sinsurance)

• TheLandlordnameandaddressandobligationsAnything that does not form part of a standard tenancy agreement can be recorded as specially negotiated clauses. Also known as riders, these aretermsthathavebeenagreedspecifictotheparties(landlordandtenant)concerned.

Once a tenancy agreement is signed, Chesterton Humberts will exchangethedocuments,normallyonthecommencementdateofthe tenancy.Oncethecontractisexchanged,itislegallybindingandall parties are bound by the terms.

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DepositIn the majority of cases the deposit required is equivalent to 6 weeks rent*. This is paid to the agent by the tenant and the agent will hold the deposit as a third party stakeholder. Chesterton Humberts protects the deposit with an approved tenancy deposit scheme by registering and providing the tenant with the certificate and necessary prescribed informationwhichincludesaleafletfromourtenancydepositschemeexplainingthescheme.Thedepositisheldagainstdilapidationsandrent arrears and specific information is found in the tenancy agreement. For further information regarding deposit protection, please see the direct gov website, or please ask us for more information should you require this prior to letting.

* WhereaLandlordisamenabletoacceptingpets,itiscommonpracticetoarrange a minimum 8 week deposit.

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Referencing All tenants renting through Chesterton Humberts must submit to an independent reference check. You will have to complete an application formandprovide2formsofidentification(photographiceg:passport,driverslicense&confirmationofaddresseg:utilitybill).

You will need to provide the following information to complete the tenancyreferencingprocess:

• Current/previouslandlord• Bankdetails• EmploymentdetailsThe company will check that the information you have submitted is truthfulandwillcontactyouremployerandcurrent/previouslandlord.

Thereferencingcostis£35(plusVAT)andwewillprocessyourapplication once we have received your preliminary monies. Please note that the referencing is carried out by a third party and charges are non refundable.

You should not apply for a tenancy if you are aware of any outstanding County Court Judgments or are in arrears with your current landlord. You should resolve these issues prior to attempting to rent a new property.

Financially, referencing companies check that the applicant can afford to pay rental commitments prior to recommending that the landlord proceeds with the tenant. The combined household salary should be 30timesthemonthlyrental.Belowisanillustrationofcommonrentalamounts and the earnings required to pass referencing.

Basedona1-yearcontract.Ifapropertiesmarketedbyweek,themonthlypriceis;weeklyrentalx52/12

If you believe that you will not satisfy the financial element of the reference check then you will need to find a guarantor who can financially support the tenancy.

Rent Per Month £867 £1,517 £1,733 £1,950 £2,137 £2,600 £4,333

RentPerWeek £200 £350 £400 £450 £500 £600 £1000

Household Annual Salaryinexcessof; £26,010 £45,510 £51,990 £58,500 £64,110 £78,000 £129,990

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GuarantorsA guarantor will guarantee the entire tenancy agreement legally and financially, to this end they must be referenced in the same way as a tenant. They will have to read and sign the final tenancy agreement. They will be as liable as the tenant if there is any breach of the contract. Only one UK based guarantor can be included on any one tenancy agreement and you must give this serious consideration where you may be sharing with multiple tenants. It is advised to prepare a guarantor in advance of offering on a property to limit delays to your home search. Make sure they are briefed in the aspects above and in a financial position to be acceptable.

Example ScenarioThreegraduatesmovetoLondonastheyhavesecuredemployment.Theydecidetohouseshareastheyhave£200/weekeachtospendon rent and offer £600 per week on a property. As they have not been in employment for more than than 3 months, they will require a guarantor. They must find 1 individual to act as their guarantor, ideally in employmentand/ora UKhomeowner,withnoadversecredithistoryandasalaryinexcessof £78,000.

Common causes of failing references;

• Employedascontractor(non-permanent)• RecentlygrantedentryintotheUK• Beingastudent• Salarynotreflectingyouractualmonetarystatus

(referencing companieswillnottakeintoaccountbonuses)

Renewals & VacatesThree months prior to the end of your tenancy term, our dedicated Renewals and Vacates Department will contact you to see if you wish to arrangeanotherfixedtermtenancy.Thereisanadministrationfeeof £80(plusVAT)for theissuingofamemorandumofagreement,whichwill formaliseyour extension.

Should you wish to vacate, you can serve the necessary notice to the landlord(inlinewiththetermsofyourtenancy)andwewillsendyoua vacate check list to aid you in your move. To prevent delays in deposit return, you should ensure that the property is professionally cleaned, tidy the garden where applicable, remove all of your belongings and rubbish and return all keys to the landlord or agent. The property should bereturnedtothelandlordintheconditionitwasreceivedin(aspertheinventorycheckinreport)savefor“fairwearandtear.”

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DefinitionsPreliminary Monies A sum equivalent to 2 weeks rent deductable against the initial monies, taken as a gesture of commitment from the tenant and to indemnify the agent against administration and referencing costs if the tenant choose to withdraw after considerable work has been undertaken. More details of  which are detailed in the Tenants Terms of Offer Form. The payment does not guarantee a tenancy or that the property is necessarily removed from active marketing in all cases.

Initial Monies The sum due in full prior to move in. Keys will not be handed over without these monies being received into Chesterton Humberts bank account. This is made up of the tenant administration fee, the referencing fee, the deposit andthe1stmonth’srent(orrentinadvanceasagreed)lessthepreliminarymonies amount.

Tenants Terms of Offer Form A form detailing the tenants obligations when entering into negotiations and the specifics of the Offer. The form is completed at the offer stage, however, should you wish to see a form in advance, please do request one.

OfferThe monetary and terms consideration that the tenant is asking Chesterton Humberts to put to their client, the landlord. This denotes the commencement of negotiations which, when all points have been agreed, formulated the Tenancy Agreement contract.

Fair Wear and TearIsthereasonableexpectationofdeteriorationofthepropertyoritscontentsover the life of the tenancy and number of tenants.

DilapidationsMeans the deterioration or damage at a property beyond fair wear and tear for which the tenant is financially liable.

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Canterbury

Norwich

Taunton

BridportChichester

Chippenham

Cirencester

Honiton

Lincoln

Ludlow

Marlborough

Nottingham

PetersfieldSalisburySherborne

Stamford

Southampton

Truro

Yeovil

York

Sevenoaks

Tenterden

East GrinsteadWadhurst

London

Blandford

Hereford

Hampstead

Mayfair

Pimlico

Kensington (2)

Knightsbridge

Hyde Park

Putney

Little Venice

Barnes

Tower Bridge

ChelseaFulham (3)

Kentish Town

Camden Islington

Covent Garden

Notting HillSt John’s Wood

EastSheen

Canary Wharf

Chiswick

BatterseaKew

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