Renting a Property

This section provides advice and best practice on renting a property in the UK.

In the UK, most new tenancies are Assured shorthold tenancies (AST).  AST is the most common tenancy form, applicable when:

● the property is private, 

● tenancy started on or after 15 January 1989,

● the property is the main accommodation, and

● the landlord does not live in the property

Entering an AST means having a contractual arrangement which gives the tenant some rights as well as responsibilities.  It is important to know these rights and responsibilities before renting a property.

There are Two Ways to Rent

1. Directly from the landlord

Look for landlords who belong to an accreditation scheme. Accreditation schemes provide training and support to landlords in fulfilling their legal and ethical responsibilities. 

The local Council in the area where the property is located can advise you about accreditation schemes operating in that area.  Find the relevant Council via https://www.gov.uk/find-local-council

The National Landlords Association, the Residential Landlords Association and the Guild of Residential Landlords run national schemes.

2. Through a letting agent

Letting agents must be a member of a redress scheme. You should check which independent redress scheme the agent is a member of. 

If they receive money from you such as rent payments, you should also check they are a member of a client money protection scheme via https://www.gov.uk/client-money-protection-scheme-property-agents

Fees

Typical permitted fees are as follows:

  • Rent

  • A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent.  This will be deducted from the rent after the tenancy is agreed, or refunded if the deal did not go through.

  • A refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above.  This deposit is kept at the Tenancy Deposit Scheme, and  will be refunded at the end of the lease term.

  • Payments associated with early termination of the tenancy, when requested by the tenant

  • Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy

  • Payments in respect of utilities, communication services, TV licence and Council Tax

  • A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

All other fees, including the following, are banned:

  • Viewing fees, any charge for viewing the property

  • Tenancy set up fees, any charge for setting up the tenancy or contracts

  • Check out fees, any charge for leaving the property

  • Third party fees, any charge for anything that is done by someone other than the landlord or tenant but that the landlord must pay for

The Landlord Must Provide You With:

A copy of the guide ‘How to rent: the checklist for renting in England’ as a printed copy or, if you agree, via email as a PDF attachment.

A gas safety certificate. If the property has an active gas supply. The landlord must provide you with a copy of this certificate before you enter into occupation of the property and must give you a copy of the new certificate after each annual gas safety check, if there is a gas installation or appliance.

Deposit paperwork. If you have provided a deposit, the landlord must protect it in a government approved scheme within 30 days and provide you with prescribed information about it. 

The Energy Performance Certificate. Your landlord must provide you with a copy of the EPC.  As of April 2020, all privately rented properties must have an energy performance rating of EPC Band E or above (unless a valid exemption applies) prior to being let out. You can also search online for the EPC and check its rating.

Upfront Payment and Payments and Credit Scores

Landlords or agents would want to make sure a tenant has the ability to pay rent on time by checking the tenant’s Credit Score through the Credit Reference Agency.

However, most Hongkongers would not have any local credit history, as they have just arrived.  When they look for rental properties, they will usually be asked to either provide a guarantor, or to pay 6 months’ (in some cases even a whole year) rent in advance.

Finding a guarantor is not easy, as he/she has to be a British citizen with a good credit score and is able to provide adequate income proof.  Hence, most HKers have no choice but pay months of rent in advance. 

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