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Default Charges


Permitted tenant charges by the landlord or letting agent.

Fees whether default or none default are per tenant, in particular in our shared houses, unless it relates to a communal area and more than one tenant is responsible.

1) Rent payable.

2) A refundable tenancy deposit capped at no more than 5 weeks rent, where the total annual rent is less than £50,000. 6 weeks rent, where the total annual rent is £50,000 or above.

3) A refundable holding deposit (to reserve a property) capped at no more than 1 weeks rent.

4) Payments of £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation* of a tenancy agreement.

5) Payments in respect of utilities, communication services, TV licence and Council Tax (Unless otherwise indicated in the tenancy agreement, that any of the above payments are included in the rental payments – e.g. a professional shared house).

6) A landlord or agent may in the event of late payment of rent, charge for payment that has been outstanding for 14 days or more and with interest at no more than an annual percentage rate of 3% above the Bank of England’s base rate for each day that the payment is outstanding.

7) Payments for the replacement of a lost keys/security devices giving access to the housing, where required under a tenancy agreement – see below :

Range of Charges

Keys and locks

Replacement of each key depending on the type of key is : £5.00 – £10.00
New locks dependent on type and if a locksmith involved : £15.00 – £120.00

Charges for the above would depend entirely on what we or the landlords are charged. If for example in a worst case scenario a tenant leaves and did not return the front door key, and took other keys, such as side and back door. It could be considered a security issue and therefore as a duty of care to the remaining tenant/customers, it may be necessary to change all external locks.

Early Termination

Payments associated with early termination of the tenancy, when requested by the tenant – see below:

Permitted chargeable fees related to the above if the landlord or agent agrees, to tenancy being terminated before the end of the fixed term.
Re-advertising cost dependent on market conditions £0 – £100.00
Reference Fees Per Tenant (normally only one) £30.00 – 55.00
The reasonable costs in conducting viewings, associated work in finding and processing a suitable tenant. A maximum of £15.00 per hour will be charged, capped at no more than a total cost of £200.00

The above charges are calculated on the costs involved finding a new tenant. e.g. we already have an advert running, which we can use to assist letting our outgoing tenants/customers room, there would be no charge for advertising.

In the case of the amount of viewings and other associated work, this is an unknown factor. The charges will be in direct proposition to time spent. We cut viewing time down us much as possible by vetting potential tenants over the phone, where possible. In respect to referencing fees varying in cost, this in dependent on the service we require from the referencing agent, based on our risk assessment of a potential tenant. If for example a reference fails, we would have to charge for a second reference. However we do our best to avoid this happening through our initial vetting process.

Non-default charges

What is the difference between a default fee and damages? A default fee is a payment which can be required by a landlord or agent under an express provision in the tenancy agreement and would therefore be permitted under the Tenant Fees Act. Default fees are only permitted where a tenant is late paying their rent or loses a key or involves a security device giving access to the housing.

Damages are the general remedy available for breach of contract and cover any contractual breach, which is not expressly covered by a default provision in the tenancy agreement for late payment of rent or for replacing lost keys/security devices.

A landlord or agent is entitled to recover the costs to put them back in the position they would have been had a tenant carried out all the obligations in their contract (e.g. returning the house in the same condition as which it was found while allowing for fair wear and tear).

Holding money for people we are providing a service to.
As agents and landlords we do not hold your money. Deposits taken are held with the Deposit Protection Service (DPS) This is what is known as a custodial scheme and is a government organisation.
We are a member of the Property Redress Scheme (PRS)
Address:
Premiere House
1st Floor
Elstree Way
Borehamwood
WD6 1JH

* Novation, in contract law and business law,[1] is the act of –

  1. replacing an obligation to perform with another obligation; or
  2. adding an obligation to perform; or
  3. replacing a party to an agreement with a new party.
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