New landlord, joint tenants, references & admin charges

[denirosdoll]

Hi, this is my first post as bought an apartment few months ago and now imminently letting it. So i'm sure you'll be helpful for advising me as a new starter.

1. I have 2 unmarried couples interested at the moment. What can I do to ensure if 1 couple says they want the apartment, that i don't turn the other couple away, to end up with 1st couple letting me down. Can you ask for a cash surety? I don't want to do referencing work, possibly pay banks or online tenant checks for references, for them to just change their mind, or references not to be up to standard, and lose other interested parties.

2. Does anybody here advocate charging an admin charge to cover cost of referencing? If so, what's appropriate amount and should that be charged per person for a joint tenancy?

I had somebody interested a couple of months ago but when i mentioned admin charge of £75, which was what my son had to pay to a letting agent, that really put her off and she said she could easily find someone who didn't charge this.

3. Do you recommend using a Tenant Referencing Service or should i get references myself? Should I get bank, employment and previous landlord reference as a minimum? For each person? Does anybody know what banks etc. charge for references and can I pass on this cost?

4. The lady I've just shown the flat to asked if it's ok that each of her and boyfriend set up their own standing orders for half rent each, as if she paid it all she would have problems getting his half back from her boyfriend, i said ok but she would be liable to me if he didn't pay (but I don't want to be the one chasing him every month). Anyone know of any problems, apart from the one i mentioned, with me allowing them to do this?

5. Tenancy Agreement:

What do Schedules 1 & 2, and section 2.3, of the Tenancy Agreement provided by this site mean?

In section 3.5.4 it refers to hanging pictures on good quality picture hooks, but my lease has a clause about not fixing anything, including picture hooks, to walls as they could damage fire retardancy of plaster. Does anybody else have this clause in their lease? Obviously people are going to want to hang pictures (and i can see picture hooks have been in walls before but filled in), do you think i could use 'No Nails' to put up some wooden battens to hang pictures from?

Does anybody add in an 'Anti-Social Behaviour Clause' like many social housing associations do?

Does anybody add in a clause eg. if tenants lose keys and have to call you out (maybe in middle of night), would you charge them for such a call-out?

Section 3.7.2 is 'underlet' same as 'sublet'? Would you change this word for clarity to tenant?

Section 3.7.7 says details of Landlord's building insurance is attached, but I have not been given details of buildings insurance by freehold managers yet. Does this mean i cannot let the property until i have this? My solicitor has assured me it is in place but the management of the building have been atrocious with providing me with anything (I even have to get copies of keys for main entrance from another tenant in the building).

With a new tenant, would any of you write into the Tenancy Agreement, a clause to allow regular, eg. monthly, inspection checks?

Is there anything else you would recommend covering in the pro-forma Tenancy Agreement?

Is it still necessary to provide tenant with rent book, or send receipts when they pay by standing order?

Do I give tenants copies of the tenancy agreement complete with Schedules 1, 2 & 3?

Sorry for so many questions, but i know it's so important to get it right from the start, and i've already been a bit stumped over some of the questions prospective tenants have asked me.

I know you're a real friendly bunch here and will help as much as you can, as i'm sure i will when i get the hang of this and became a 'fully fledged' member of the team.

Thanks in advance folks!

[J4L]

I'll try and go through your questions one by one and answer where possible but please excuse me if I don't answer a specific topic due to scrolling the page etc.

1) Take holding deposit on the property. Explain that this is an admin fee and is for the referencing and credit checks etc and should they pull out or the checks come bask unsatisfactorily then this money is non-refundable.

Chances are if they part with a holding deposit they are not gonna do a runner. I'd be tempted to say to the other couple that you've taken a deposit from another interested party and if their checks come back ok then they are going to be allowed it. If they don't then of course you will call them.

2) Yes of course charge an admin fee and make sure you get this before you do any checks. It's going to cost you to do these checks so obviously the tenant has to pay for this.

We charge £100 per tenant but reduce it dependant on the amount of people going in. 2 for £150 3 for £175 etc.

3) There are lots of ways you can reference tenants and this depends on what you expect back in the way you go around it. Employers reference gives you what? The security that the Tenant is working, the amount they earn etc. What is it exactly that you do with the information? If you perform references yourself you are actually speaking/communicating with a real person.

You can take up as many references as you wish, but the most important part of this is what you do with the information.

Previous Landlord is general but what if that Landlord is trying to get rid of them? You are not getting a true picture of them as the LL may WANT them to go for numerous reasons but you'll recieve a glowing ref so that the LL offloads any problems onto you. He's hardly going to give a bad reference is he? I'd be looking back toward the previous LL and writing to them.

Banks usually charge about £30 to perform a tenant reference, don't worry though because they usually chrge the T for this. Your worry is, what do you do with the information when you get it??

4) Set up one S/O if she's got problems with him then that's her problem, not yours. They are both jointy liable for the rent so if there's going to be problems you only really to be chasing one debt rather than two.

5) Haven't seen the agreement and don't use it so can't comment.

I wouldn't be too worried about tenants hanging pictures etc on walls unless the walls are papered and then i'd be adamant that they don't. This because instead of removing a screw and filling, sanding and painting it you may need to re paper an entire wall.

"Does anybody add in an 'Anti-Social Behaviour Clause' like many social housing associations do?"

Yes there is a noise clause in the agreement.

"Does anybody add in a clause eg. if tenants lose keys and have to call you out (maybe in middle of night), would you charge them for such a call-out?"

You can add in what you like and charge what you like for this service, we generally charge £10 dependant of time of day, area etc.

"Section 3.7.7 says details of Landlord's building insurance is attached, but I have not been given details of buildings insurance by freehold managers yet. Does this mean i cannot let the property until i have this? My solicitor has assured me it is in place but the management of the building have been atrocious with providing me with anything (I even have to get copies of keys for main entrance from another tenant in the building)."

Again you can let a property without this but obviously it could prove detrimental if you don't, although most mortgages won't be issued unless this is in place.

"With a new tenant, would any of you write into the Tenancy Agreement, a clause to allow regular, eg. monthly, inspection checks?"

You can organise inspections as you wish, It doesn't necessarily need to be written into the contract that you will perform them monthly etc but should say that you ACTUALLY perform them.

"Is it still necessary to provide tenant with rent book, or send receipts when they pay by standing order?"Some tenants are comfortable with rent books but they are only really usable if you collect rent every month on the door. If they pay by S/O then they already HAVE a reciept in the form of their bank statement so no need to send a copy unless you feel the need.

[jamesrap]

I'll try and go through your questions one by one and answer where possible but please excuse me if I don't answer a specific topic due to scrolling the page etc.

1) Take holding deposit on the property. Explain that this is an admin fee and is for the referencing and credit checks etc and should they pull out or the checks come bask unsatisfactorily then this money is non-refundable.

Chances are if they part with a holding deposit they are not gonna do a runner. I'd be tempted to say to the other couple that you've taken a deposit from another interested party and if their checks come back ok then they are going to be allowed it. If they don't then of course you will call them.

2) Yes of course charge an admin fee and make sure you get this before you do any checks. It's going to cost you to do these checks so obviously the tenant has to pay for this.

We charge £100 per tenant but reduce it dependant on the amount of people going in. 2 for £150 3 for £175 etc.

3) There are lots of ways you can reference tenants and this depends on what you expect back in the way you go around it. Employers reference gives you what? The security that the Tenant is working, the amount they earn etc. What is it exactly that you do with the information? If you perform references yourself you are actually speaking/communicating with a real person.

You can take up as many references as you wish, but the most important part of this is what you do with the information.

Previous Landlord is general but what if that Landlord is trying to get rid of them? You are not getting a true picture of them as the LL may WANT them to go for numerous reasons but you'll recieve a glowing ref so that the LL offloads any problems onto you. He's hardly going to give a bad reference is he? I'd be looking back toward the previous LL and writing to them.

Banks usually charge about £30 to perform a tenant reference, don't worry though because they usually chrge the T for this. Your worry is, what do you do with the information when you get it??

4) Set up one S/O if she's got problems with him then that's her problem, not yours. They are both jointy liable for the rent so if there's going to be problems you only really to be chasing one debt rather than two.

5) Haven't seen the agreement and don't use it so can't comment.

I wouldn't be too worried about tenants hanging pictures etc on walls unless the walls are papered and then i'd be adamant that they don't. This because instead of removing a screw and filling, sanding and painting it you may need to re paper an entire wall.

"Does anybody add in an 'Anti-Social Behaviour Clause' like many social housing associations do?"

Yes there is a noise clause in the agreement.

"Does anybody add in a clause eg. if tenants lose keys and have to call you out (maybe in middle of night), would you charge them for such a call-out?"

You can add in what you like and charge what you like for this service, we generally charge £10 dependant of time of day, area etc.

"Section 3.7.7 says details of Landlord's building insurance is attached, but I have not been given details of buildings insurance by freehold managers yet. Does this mean i cannot let the property until i have this? My solicitor has assured me it is in place but the management of the building have been atrocious with providing me with anything (I even have to get copies of keys for main entrance from another tenant in the building)."

Again you can let a property without this but obviously it could prove detrimental if you don't, although most mortgages won't be issued unless this is in place.

"With a new tenant, would any of you write into the Tenancy Agreement, a clause to allow regular, eg. monthly, inspection checks?"

You can organise inspections as you wish, It doesn't necessarily need to be written into the contract that you will perform them monthly etc but should say that you ACTUALLY perform them.

"Is it still necessary to provide tenant with rent book, or send receipts when they pay by standing order?"Some tenants are comfortable with rent books but they are only really usable if you collect rent every month on the door. If they pay by S/O then they already HAVE a reciept in the form of their bank statement so no need to send a copy unless you feel the need.

Deposits these days should be registerd with the relevant authorities. As a responsible landlord you should be looking along the lines if you cant aford it dont do it. (renting a home out I mean)

Calling a deposit an admin fee could be ulawful as it is not an admin fee it is a deposit and you could be held liable for breach of contract.

Bare in mind you must justify any charge before a court of law as this could be classed as a penalty fee. The old saying it is in the tennancy agreement it is lawful is no longer the case these days.

[Simon Dewsberry]

a deposit is a deposit ..... a set up fee is a set up fee ..............Let us not confuse the issue !

If money held as security , to be returned then it is a dep.....if it is non ret. and tobe kept then it is a fee !!

Just get dep protected .

The Rodent

[jamesrap]

a deposit is a deposit ..... a set up fee is a set up fee ..............Let us not confuse the issue !

If money held as security , to be returned then it is a dep.....if it is non ret. and tobe kept then it is a fee !!

Just get dep protected .

The Rodent

It may be wise to register any such deposit under a tennants protection scheme as the tennant may challenge this as an unfair term. There are 2 regulations that deal with land which is the Unfair terms in consumer contracts act which deals with terms and conditions that have a debtor and a creditor and the unfair terms in contracts act which deals with commercial tennancys.

So your tennancy contract would be regulated by the oft who frequently challenge estate agents on there terms of conditions. They are succesful most of the time as well its worth noteing.