Holding Deposit & Reservation Process

To reserve a property you will be required to pay a holding deposit which is equivalent to one weeks rent. To work out the holding deposit we use the following calculation:

 

Monthly rent x 12 / 52. Using a rent of £550pcm as an example the holding deposit would be £126.92.

 

Once the holding deposit has been paid we will reserve the property for you, the holding deposit does not constitute a tenancy, or an offer of a tenancy. All tenants aged 18 or over will be named on the tenancy and will be reference checked and subject to government right to rent checks.

 

Once you have paid the holding deposit all tenants will be required to complete an on-line application form within 48 hours via our website. Within five days all tenants (and guarantors if applicable) will need to supply supporting documents (as shown below) within 5 days.

 

Once the holding deposit has been paid both the tenant and landlord must enter in to a Tenancy Agreement within 14 days, this is the ‘deadline for agreement’. However if both parties agree in writing this time can be extended.

 

Once references are passed and accepted the holding deposit will usually be used to contribute to your first months rent and bond, however we can arrange for the holding deposit to be refunded and then you would pay the full amount of the first months rent and bond.

 

The holding deposit may not be refunded in the following circumstances:

 

• If during the reference or reservation process the tenant(s) provide false or misleading information, this can include a tenant’s behaviour in providing false or misleading information

• If the tenant(s) fails a right to rent check

• If the tenant(s) withdraws from a property

• The tenant(s) fails to take all reasonable steps to enter in to a tenancy agreement and the landlord or agent takes all reasonable steps to do so.

 

Pets

If the Landlord has indicated pets are accepted you will usually be required to pay a higher rent, this will be made clear on the property advert/description and discussed prior to you paying a holding deposit. You will also need to sign a pet contract. The security deposit will be five weeks rent.

 

Security Deposit

Before your tenancy commences you will be required to pay a security deposit, this will either be equivalent to one months rent or five weeks rent. The deposit amount will be shown in the property advert/ description and discussed prior to you paying a holding deposit. This deposit will held by North East Letting as the acting managing agent, or by the Landlord. The deposit is held against damages or expenses arising during your tenancy and will not be released until after you vacate the property and all rent has been paid up to date. If North East Letting is managing the property the deposit will be held with the DPS – Deposit Protection Service. From time to time properties may be available with a no deposit option. This service will be provided by a third party company called Reposit, details of the no deposit option will be provided separately on a property by property basis.

 

Fees Payable During The Tenancy

There are still a number of fees which may be payable during the tenancy, please note these fees may only be applicable when the agent is managing the property. To find out who will be managing the property please call us on 0191 215 4567.

 

Late Rent

Where the rent remains late for 14 days or more a default fee will be charged. A daily interest rate charge which will be levied at 3% above the Bank of England base rate on the late payment of rent from the date the payment is missed will be charged.

 

Lost Key or Security Device

The tenant is responsible for ensuring that they look after the keys for the property throughout the tenancy. If they fail to do so, they will be responsible for covering the reasonable costs of replacement.

 

Contractual Damages

The Landlord is entitled to recover the costs for any breach of Tenancy and to put the property back in the position it 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).

 

Changes to the tenancy Agreement

Where the tenant(s) request a change to the tenancy agreement a charge of £50 will be payable.

 

Early Termination Fee

Where a tenant(s) requests an early termination and this is agreed by the Landlord rent will be payable as required under the tenancy agreement until a suitable replacement tenant is found. A fee to cover the landlords reasonable marketing and reference costs will also be payable, this fee will be £480.00.