Letting a Property - A Guide for Tenants

How an RICS member can help you rent a property in Leeds 

This guide has been written by RICS (Royal Institution of Chartered Surveyors) and explains the basic legal and practical issues involved in renting a flat or house. It gives a checklist of the process you will need to go through and also explains how RICS members can help if you need any professional advice.

As the world’s largest professional body for property professionals, RICS offers clear, impartial, expert advice on renting a property. Using the services of RICS members offers real peace of mind because:

• They give you clear, impartial and expert advice
• They have strict codes of conduct to protect you – including proper insurance
• RICS members have to update their skills and knowledge throughout their careers, so you can reply on their expertise
• You are further protected by a complaints service.

The process

Once you have decided on the type for property:

Finding a property to rent in Leeds

There are a number of factors to consider before finding a property to rent in Leeds. These will largely depend on your personal circumstances, location and needs.

Role of the letting agent

Once you have decided on a property check the letting agent is an RICS member – they will follow a Rent Only Management Code and Service Charge Management Code – protecting your consumer rights.

Agreeing the let

Once you have found a suitable property, you will have to agree the terms of the let, which will involve some negotiation. On agreement, formal documentation will need to be signed between the landlord and tenant setting out the terms and conditions of the let.

Moving in

You will not be able to move in until you have paid your deposit, first month’s rent and any fees. But once on your way, this can be a very exciting time.

Finding a property to rent

Whether you have rented before or this is your first time, when you rent a home there is a lot to think about:

• Does the property meet your needs?
• Cost - How much is the rent and will you need to pay extra for bills?
• Location – is the property close to local amenities? i.e. shops, doctors, schools etc.
• Size – will the property accommodate your needs? i.e. number of bedrooms required.

What type and length of tenancy should you have?

If the rent on the property is less than £25,000 per year and you do not live with the landlord, the tenancy automatically becomes an Assured Shorthold Tenancy (AST). An AST usually lasts for 6 to 12 months unless you agree a fixed term for the tenancy in advance with the landlord.

What happens at the end of the tenancy?

When the fixed term of the tenancy has expired, the landlord is able to gain back possession of the property provided they give two months written notice to the tenant. In addition, if you owe at least 2 months or 8 weeks rent, the landlord can ask you to leave.

What can you afford?

Before you even look at a property, work out what you can afford by looking at what your basic outgoings are likely to be. For instance:

£ _______   The monthly rent

£ _______   The costs of getting your references

£ _______   Inventory and tenancy agreement costs

£ _______   The deposit and any maintenance costs

£ _______   Council Tax

£ _______  Water rates, gas, electricity and telephone charges

£ _______  TV licence

£ _______  Insurance for your belongings

£ _______  Total

Role of the letting agent

Most people find a place to rent by looking in the rental property section of local newspapers, on property websites or by going to estate and letting agents in the area they are looking to move to. However if you find a property to rent, it will be managed either directly by the landlord or more usually by a letting agent.

Remember the agent is acting for the landlord and has no contractual duty to you. Check whether the agent is an RICS member as they follow a Rent Only Management Code and Service Charge Management Code – protecting your consumer rights. It is also important to identify whether the agent is a ‘sole agent’ If not, other agents may be trying to let the same property.

Agreeing the let

When you find a property, before you sign anything you should:

• Look at the property – is it clean, what kind of condition is it in and is anything broken?
• Find out what furniture, furnishings, and other equipment are included in the rent
• Ask about any management and maintenance costs
• Find out what your responsibilities are, such as cleaning or replacing broken furnishings.

Health and safety requirements

You should check and get assurances or certificates from the landlord that the property complies with these regulations:

• Furniture and Furnishings (Fire & Safety Regulations 1988, amended in 1993)
• Gas Safety (Installation and Use) Regulations 1998
• Smoke Detectors Act 1991, (if the property doesn’t have smoke alarms ask if they can be installed)
• Electrical Equipment (Safety) Regulations 1994.

In addition, you are advised to check whether electrical appliances have been PAT tested (Portable Appliance Testing) by the landlord.

References

Once you have found a property, you will need to agree the terms and conditions with the landlord. For these purposes you will need to supply the landlord with relevant information and ensure you sign the necessary paperwork required for renting the property.

Becoming the tenant usually takes anywhere from a few days to three or four weeks.

Before you sign anything, the landlord or agent should provide you with a clear statement of rent, tenancy, deposit and any costs of setting up the tenancy. This includes the administration costs of getting your references. The letting agent will get references by contacting either:

• Your bank
• Credit referencing agencies
• Current and previous employer(s)
• Current and previous landlord(s)

If you are self-employed you may need to provide copies of trading accounts and an accountant’s reference. Even if someone is going to your guarantor you will still need references.

Tenancy agreement and deposit

Once the letting agent and landlord are happy with your references you can sign the tenancy agreement. Before signing, read and if necessary get professional advice on any documents you are asked to sign. Check the paperwork mentions the following important points:

• Length of tenancy – most lettings are ‘Assured Shorthold Tenancies’
• How often and when to pay rent, as well as any other costs 
• What the deposit is – usually either a month’s rent or the equivalent or six weeks rent
• How the money will be held. Letting agents who are RICS member hold money in a special account called a ‘client account’ where it will be protected
• Is your deposit covered by Tenancy Deposit Protection? Under new legislation a landlord is required to ensure that deposits they hold are covered under a scheme from 6 April 2007. RICS members are qualified to join the Tenancy Deposit Scheme for Regulated Agents which ensures that your deposit is protected during the tenancy; and that any dispute over its return will be resolved quickly and independently without any further cost. For more details visit the TDSRA website
• How you will get the deposit back at the end of the tenancy
• Your landlord must, by law, give you an address in England and Wales for serving your notice
• How much, and who you will pay for, work at the end of the tenancy, such as checking the inventory, renewing the agreement or cleaning the property
• The contact details of the manager responsible for the property
• Whether gas, electricity and other services have been connected and that meters have been read
• You will not be discriminated against because of sex, race, sexual orientation, age, religion, marital status or disability.

Moving in

You will not be able to move in until you have paid your deposit, first month’s rent and any fees. But once on the way, this can a very exciting time and it’s very easy to forget a few important things:

• Insure your own belongings at the property – landlord’s insurance will not provide cover for them
• Make sure you know how all equipment in the property works and you have their manuals
• Find out the telephone number of the various emergency maintenance services
• Tell your gas, electricity, water and telephone companies the day you move in, making your own note of the meter readings.
• If you are responsible for Council Tax, speak to your local authority
• You may also want to speak to your local Neighbourhood Watch co-ordinator or the resident’s association if the property is in a block of flats.

Looking after your rented property

You will need to pay for fixing or replacing any damage to the property while you are renting it, otherwise it comes out of your deposit. So return the property to the landlord at the end of the tenancy in the same condition as at the start, allowing for fair wear and tear. Remember, if you are away, for whatever reason:

• You still need to pay rent on the right date
• You are responsible for the property’s security
• Make sure the property is not damaged by the weather
• Let your insurer and your landlord know so that insurance arrangements can be made
• Give the landlord emergency contact details.

Tenant’s checklist

Here’s a brief summary of the various costs you will have to consider when you rent a property:

Insurance

The landlord is most likely to obtain building insurance for the property although it is up to the tenants to insure their personal possessions. It is advisable to check with the landlord what exactly is covered in the policy.

Letting agent’s charges

The letting agent may make an administration charge for processing the application and for completing the relevant paperwork.

Reference costs

There is likely to be a cost made by the bank in order to undertake the credit checks and references.

Removal

The cost of moving will vary depending on how much belongings you have and how far you are moving.

Services

You don’t usually have to pay to have gas, electricity or water reconnected, but there may be a charge to reconnect the phone.