If you are intending to rent a property in the UK , but have never done so before, then the terms and procedures in use can be both unfamiliar, and confusing. Arranging a residential Tenancy can be complicated and our intention is to guide you through the process and to explain the steps that need to be taken before you can move into your chosen property.

The top letting agents are all members of a trade professional organisation known as ARLA (the Association of Residential Lettings Agents). The entry requirements for ARLA are reasonably strict and so, by definition, most ARLA members have been in the lettings business for many years.

The rental market now makes intensive use of both the internet and email as a marketing tool. The web is a good way to get started and to get a feel for prices, but you cannot beat specialist advice and local knowledge that can be provided for you by a reputable Letting Agent.

Property Search

The asking rent in Central London is usually quoted per week and elsewhere in the UK , per calendar month. The asking rent does not normally include utilities, or the local property tax (Council Tax). When viewing a property, it is important to remember that some things may be negotiable, so if you like the property but want something changed, then make a note, as these changes could form part of the negotiations.

You may view several properties and it is important to make notes on them so that you can easily remember which properties you liked. It helps to end up with a short list of two or three properties just in case you are unable to proceed with the property you like the most.

Securing a Property

Once you have chosen your favourite property you will need to make an offer to the letting agent. Most property prices are slightly negotiable. Longer term rental contract offers can result in lower rents. If you have a "wish list" of improvements at the property, you should make these a part of the offer. Once you have found a property that you wish to make an offer on you will need to decide:

•  how much you are willing to pay and the payment frequency

•  the length of contract you want and the planned start date

•  who the Tenant will be

•  what options you might want to extend, or break the contract earlier than planned

•  if you have a “wish list” of changes to be made to the property.

The deal that you agree will be negotiated "Subject To Contract" and satisfactory references. It is not binding on either party until contracts have been signed. Whilst this means that you are free to change your mind, it also means that the Landlord is free to accept alternative offers. A reputable agent will withdraw the property from the market whilst the deal is finalised, and as long as the potential Tenant shows signs of proceeding, the property will not be re-offered on the market. Where the property is being offered by more than one agent, only the agent who makes the deal earns commission so rival agents may try to persuade the Landlord to accept alternative offers. You should always try to finalise a contract as soon as possible, even though the Tenancy may not start for several weeks.

When your offer is accepted, you may be asked for a holding deposit and/or monies to cover the cost of taking up references and the Agents' administration fees. A reputable Agent will only ask for a small holding deposit and will set out in writing for you the terms on which the deposit is being taken including what happens if you back out of the transaction.

Your first step is to decide who will be the Tenant of the property. You may enter into the contract yourself (a private let) or alternatively your employer may wish to enter into the contract as the Tenant (a company let), in which case you will be listed on the contract as the "Approved Occupier".

If your company is to be the Tenant with you as the Occupant, you should check your company policy on legal review of the draft contract. They may request that you use a particular firm of solicitors or their in-house relocation team.

If your money is not in the UK, make sure that you initiate a transfer as soon as possible so that you can pay any monies due. It can take seven to ten days to transfer funds from some countries. If you are to be the Tenant, then you will also need to open a UK bank account as soon as possible, especially if you are going to be in the UK for more than a few months. You can open an account with either a traditional bank or building society that often have both a branch network and internet banking facilities, or with an internet-only bank. Account opening requirements vary, but in general you will need to complete an application form and provide proof of identity such as a passport. A letter of introduction from your current bank, and an employer's reference letter are usually well received.

The Landlord will require appropriate references on the Tenant. Normal practice where the Tenant is a company is to require contact details of the company's bankers, accountants and solicitors, plus an employer's reference on the proposed "Approved Occupier".  For a private Tenant, the Landlord will usually require personal bank and employer's contact details, plus a personal reference from someone not related to the Tenant. If there is a previous Landlord who will provide a reference, then this will also be useful. Many Landlords will not accept foreign bank references.

In each case, the Landlord or his Agent will write for a reference, and they must receive a satisfactory reply, indicating that the Tenant can afford to pay the agreed rent, and is of suitable stature or character.

The Paperwork

The draft Contract is normally issued by the Landlord's Agent. Different types of contract are used depending on whether it will be a company let or a private Tenancy. You should review the Contract to make sure that the terms in the draft reflect what you have agreed. There is no standard contract in use, and the wording of each agreement varies slightly. It is advisable to have your contract checked by a solicitor or someone who has an understanding of the legal terminology. The main sections of a rental contract comprise:

•  Introduction - t his gives the names of the Landlord and Tenant, the Address of the Property, the Starting Date and Term, and the Rent payable. It may also record other information such as the amount of the Security Deposit, and the name of the Landlord's Agents

•  Tenant's Obligations - t he longest part of the contract, and normally a list of what the Tenant will pay for in addition to the rent plus a set of restrictive obligations setting out what is expected of the Tenant

•  Landlord's Obligations - sets out what the Landlord will do in return for the Rent

•  Termination – a standard section that sets out a number of reasons for automatic termination of the Tenancy, for example, the non-payment of the Rent

•  Special Clauses - a ny variations or additional clauses that are normally set out at the end of the contract. For example, any additional rights of termination by either the Landlord, or the Tenant, are listed here, as are any options to renew the contract for a further Term.

Most contracts are several pages in length. The many different rental contracts in use have evolved over a long period of time, and have often been amended as a result of legal action and court decisions. Because of this, it can be quite difficult to get agreement to delete clauses from a contract and it is often easier to agree variations or additions.

By now you should be at the stage where all references have been taken up and accepted by the Landlord and the contract signed and you will be in a position to pay your monies.

Monies

Monies

In London most Landlords request a security deposit equivalent to six week's rent. It is mandatory for any deposit monies taken against an Assured Shorthold Tenancy (the annual rent does not exceed £25,000) to be registered with a Tenancy Deposit Protection Scheme. This reinforces the concept of “Stakeholder” as it prohibits the holder of the deposit from disbursing any of the deposit monies without the agreement of the Landlord and the Tenant. Deposits for Non Housing Act Tenancies and Company Let Tenancies (which are often made in the form of a ‘Letter of Guarantee') are currently not covered by any Tenancy Deposit Protection Scheme.

The security deposit and first rent payment will be required in cleared funds prior to the commencement of the Tenancy.

If you are planning to pay the rent and deposit by personal cheque then you will need to allow at least seven working days before the start of the Tenancy for the cheque to clear. We recommend that you pay by Bank Transfer or Banker's Draft ( a cheque issued by a bank in its own name that is equivalent to cash). It is imperative that your monies are in cleared funds otherwise access to the property may not be allowed.

Commencing the Tenancy

Check-In

The final formality is the check-in. This is held at the property, and a formal document called the Inventory and Schedule of Condition (the "Inventory" ) is agreed between the Tenant and an independent Inventory Clerk using a document that will have been pre-prepared by a specialist Inventory Clerk prior to the check-in. 

The checking of the Inventory is a task that involves walking through the property, room by room, and noting the exact contents and their condition. Do not be tempted to pass or skimp on this job. Careful checking of the Inventory at the start of the Tenancy will prevent unreasonable deductions (called dilapidations) from your Security Deposit when you leave.

It is normal practice for the Landlord to pay for the Schedule of Condition and the inventory check-in at the commencement of the Tenancy and for the Tenant to pay for the check–out at the end of the Tenancy.

Council Tax

The Council Tax year runs from 1st April to 31st March and as part of the Letting Agent's service, they may contact the Local Council to confirm your Tenancy with regard to the payment of Council Tax. It is your responsibility to ensure that the Local Council is aware of your Tenancy and we would advise that you register with the Local Authority as soon as possible after move-in to open your account.

Utilities

Again, as part of the Letting Agent's service, they may contact the utility companies to advise them of the commencement of your Tenancy and the meter readings taken, although it is your responsibility to ensure that the utilities are transferred in to your name at the start of the Tenancy. Gas, electricity and water rates are billed every three months and payment can be made by direct debit.

Carter Jonas London Residential Limited is a member of ARLA.

Carter Jonas London Residential Limited hope that this brief summary of the rental procedures in Central London will help your transition from Applicant to Tenant to be as easy as possible.