Private Housing Guide 2021 - Found Somewhere. Now What?

FOUND SOMEWHERE. NOW WHAT? You’ve searched online and have shortlisted some potential properties.

When you go to view the property it’s important to know what questions to ask and what to look out for.

Once you’ve decided that a property is for you, make sure you’re armed with knowledge of your rights to ensure you get the best deal.

SECTION CONTENTS

VIEWING THE PROPERTY

Viewing the property

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What to look for and ask

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Reaching an agreement

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Understanding letting fees

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Holding deposits

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Property owner and HMO checks 21 References and guarantors

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Right to rent

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Security deposits

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Contracts 27 Break clauses 30

View a property before signing the contract; photographs are not a substitute for visiting a place yourself. It may be useful to take notes and photographs while you are there.

Listed opposite are things to think about and questions to ask when you’re viewing a property.

If there are significant repairs to be made, or you ask for certain items to be supplied (eg, security lighting) not all landlords will be prepared to carry them out. In most cases you take the property as seen. It is for you to decide if the property suits you.

TOP TIPS View the property both day and night, ideally with a friend.

Time your journey and ensure you are comfortable with the commute Are there current tenants who can give you an insight as to what the landlord is like?

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VIRTUAL VIEWINGS Some landlords or agents are using different methods to viewings to showcase their properties. These include 360-degree tours, live video tours via WhatsApp, FaceTime, or Skype. Whilst this goes some way to showing you a property, this is not a substitute for the real thing. We would strongly advise caution against paying a holding deposit or signing a contract for a property you have not actually seen in person.

We advise that you request a live virtual tour so that you can see the property in real time.

Top tip: Make sure you get any verbal promises in writing; your contract needs to have explicit terms (written in it) to manage the risks presented by the virus.

Protect yourself by adding a coronavirus clause or addendum to your agreement. If you are viewing the property virtually you should include a clause that protects you just in case the property is not as it was displayed in the video. See page 30 for more information about updating contracts.

“I LEARNED FIRST HAND HOW PROPERTIES CAN LOOK VERY DIFFERENT FROM THE PICTURES POSTED ONLINE... IF YOU HAVEN’T SEEN IT WITH YOUR OWN EYES, DON’T EVEN THINK ABOUT SETTLING” Isaac Tan, Imperial PG student Read more about Isaac’s house search: bit.ly/Isaac-accommodation-blog 15

LOOKING AT A PROPERTY

MAINTENANCE Is the property clean and well maintained?

FURNITURE

SAFETY CHECKS

Is there enough furniture? E.g. beds, wardrobes, sofa, chairs and desks etc.

Is there a gas safety certificate? Are there enough plug sockets in each bedroom e.g. for phones, computers etc.

Is the furniture in good condition?

Are there satisfactory exits if there was a fire? Does the furniture/mattress have either a fire resistant label or kitemark? Are there sufficient locks on doors and windows?

DAMPNESS AND MOULD Are there any signs of damp, mould and draughts?

LEAKS Look out for discoloured or damp patches

SMOKE ALARMS AND CARBON MONOXIDE DETECTORS Check all smoke alarms and carbon monoxide detectors.

QUESTIONS TO ASK

GENERAL CONDITION OF FITTINGS Check the toilets, white goods (fridge, freezer, microwave, washing machine etc.) and all items provided in the property.

Are they in good condition and working order?

KITCHEN Does the kitchen have enough cooking/ laundry facilities?

Are they in working order?

REPAIRS Are there any repairs being carried out? Will they be complete when you move in? Get it in writing!

PESTS Is the house free of pests? Mouse droppings are a giveaway.

QUESTIONS FOR THE AGENT OR LANDLORD □ Who manages the property? □ Who do I pay my rent to? (The agent or the landlord?) □ Who do I report repairs to? □ Are bills included? □ How many people will be sharing bathroom and kitchen facilities? □ How is the house heated?

QUESTIONS FOR THE CURRENT TENANTS □ Does the landlord/agent respond quickly to repair issues when they are reported? □ How much are the bills?

GARDENS If the property has a garden, are you responsible for maintaining it? Check if it’s neat and not overgrowing. Make sure there’s not rubbish that may attract rodents.

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□ Do you like the area and what are the neighbours like? □ Are there any current issues e.g. pests, mould etc.?

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REACHING AN AGREEMENT WITH AGENT/LANDLORD

UNDERSTANDING LETTING FEES

NEGOTIATING RENT

WHO DOES THE BAN APPLY TO?

Is the rent reasonable? Make sure you visit other similar properties in the area to make sure you are not being overcharged. You can also compare rents of similar properties online.

ADDING BREAK CLAUSES OR CHANGING CONTRACT LENGTH Signing a contact is a legally binding document and your circumstances may change. If you are unsure that you can commit to the full contract term, you may be able to negotiate a break clause or a shorter contract. See page 30 for further details on break clauses.

ADDING ITEMS AND REQUESTING WORK TO BE CARRIED OUT If you have requested additional items to be included (eg. an extra desk) or works to be carried out prior to the start of the contract, you will need to get confirmation in writing.

Any promises made should be written in the holding deposit receipt and in the tenancy agreement. See page 30 for details on how to include additional items in your contract.

The ban applies to most private tenants, including those who have an assured shorthold tenancy, who are living in student housing or with a lodger.

WHAT YOU CAN’T BE ASKED TO PAY

WHAT YOU CAN STILL BE ASKED TO PAY

If you sign or renew a tenancy you can’t be asked to pay for:

The only fees that you can be charged are:

if you are more than 14 days late paying your rent

credit and immigration checks

for the cost of replacing a key or fob

administration

renewing your contract

if you want to end or change a term in your tenancy

referencing

WHAT IF I’M CHARGED A PROHIBITED FEE? If you are charged a fee that you do not think is legal, you should raise this with your landlord or letting agent. Professional letting agents are aware of the legislation.

FROM 1 JUNE 2019, THE TENANT FEES ACT CAME INTO ACTION, BANNING MOST LETTING FEES AND CAPPING TENANCY DEPOSITS PAID BY TENANTS IN THE PRIVATE RENTED SECTOR IN ENGLAND. This act also bans prohibited fees for all existing tenancies from 1 June 2020.

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If there has been a legitimate mistake, they should rescind the charge within 28 days, or show you why they are entitled to charge you a fee -for example, if you have lost the keys to the property.

WHAT IF I’M ALREADY IN A TENANCY? If you renew your tenancy, after or on 1 June 2020, any deposit money you have paid that exceeds 5 weeks’ rent must be refunded.

If you leave your tenancy before 1 June 2020, you will still have to pay a check out fee or inventory fee if this is stated in your contract.

More information For more information see the Guidance for Tenants, published by the government. www.gov.uk/guidance/information-for-tenants The Student Hub offers a contract checking service, so make an appointment before signing if you have any doubts.

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HOLDING DEPOSITS A holding fee is paid if you agree to take the property, but have not signed the contract to take up the tenancy. Don’t pay it if you’re not absolutely sure. It will probably not be refundable. Ask for a receipt and a copy of the terms and conditions.

If you enter into a tenancy agreement, the landlord must either:

Return your holding deposit within 7 days of agreeing the contract

Deduct if from the security deposit (see page 26) or the first rent payment with your permission

HOW MUCH YOU CAN BE CHARGED From 1 June 2019, a holding deposit can’t be more than 1 week’s rent.

WHAT A HOLDING DEPOSIT RECEIPT SHOULD INCLUDE:

What if the landlord changes their mind?

If the agreement is cancelled, and it’s not your fault, the holding deposit should normally be returned to you.

What happens if I change my mind?

Amount of holding deposit

Address of the property

Proposed rent for the property

Length of contract

Tenancy start date

Requests for the landlord (e.g. cleaning or furniture to be provided)

A large majority of students would rather rent a room in houses/flats with other students (not always Imperial Students). This can sometimes be problematic as the Landlord may have a tenancy with one tenant but allow them to rent out additional rooms - this is called sub-letting.

Conditions for refunding the deposit should you or the landlord change your mind or your references fail

However, in some cases the landlord does not have any knowledge of this subletting.

Without an official contract between you and the legal property owner you do not have any protection and the landlord could ask to leave the accommodation immediately or could ask you to pay additional rent.

WHAT HAPPENS WHEN YOU PAY A HOLDING DEPOSIT

The landlord or agent should stop advertising the property

It is not permitted for the Landlord to take a holding deposit from more than one person for the same property at the same time

You have 15 days from when you pay a holding deposit to enter into a tenancy agreement You can agree a different deadline with the landlord or agent in writing

You could lose your holding deposit if you decide not to go ahead, or don't take reasonable steps to agree a tenancy by the deadline.

CHECKING THE LEGAL PROPERTY OWNER

If you are unsure whether the landlord owns the property you are about to rent, use the Land Registry website which may have a record of your landlord’s name and address: www.gov.uk/search-property-information-land-registry

You’ll need to pay a small fee for this information.

If the prospective landlord is not the property owner, you will need proof that they have the right to rent it to you.

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HOUSES OF MULTIPLE OCCUPANCY Does your landlord have the correct licence for the property? If you live in a House of Multiple Occupancy (HMO) it is worth checking if the landlord has the correct licence to legally rent out their property.

WHAT IS AN HMO? HMOs are properties where three or more unrelated people share facilities such as a kitchen or bathroom.

HOW DO I FIND OUT MY PROPERTY HAS AN HMO LICENCE?

WHAT IF AN HMO DOESN’T HAVE A LICENCE?

To find out whether a property has an HMO licence, ask your landlord or contact your local council. They have a list of all the licensed landlords in their area.

It is a criminal offence for your landlord to operate an HMO without a licence, and they could face prosecution.

www.gov.uk/find-local-council

If you think that the HMO you are living in may be unlicensed, you should report your landlord to your local council. You may be eligible to make a claim against them for a ‘rent repayment order’.

UNDERSTANDING LICENSING

Selective Licensing In some cases, councils require all private rented properties to have a licence - called Selective Licensing, in order to improve standards of quality and safety.

This applies to all private rented properties regardless of number and relations of occupants.

REFERENCES AND GUARANTORS It is likely that you will need a reference in order to let a property. Most students have yet to build up a credit history to provide the kind of references that agents require. Some agents may settle for a letter from a previous landlord or employer, or a bank statement showing proof of funds and written proof that you are an enrolled student. If not, the agent or landlord may ask you if a parent will act as your guarantor (this person must be UK-based).

WHAT IS A GUARANTOR? A guarantor is someone willing to be responsible for payment of your rent or damage if you don’t pay it. Remember, you and your flatmates will all be liable as well as your guarantors.

If you do not have a UK-based guarantor, the agent or the landlord could ask you to pay more rent in advance. It is common to pay between 3 and 6 months rent in advance when you don’t have a guarantor. We would advise not to pay more than 6 months.

Mandatory HMO Licensing

+

+

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It is a legal requirement to licence properties that are defined as Mandatory HMOs

RENT GUARANTOR SCHEME

This applies to larger shared rental properties with five or more (unrelated) people from more than one household. e.g. student house.

The College can act as a legal guarantor for students renting in the private sector who are not able to provide a suitable UK guarantor.

Additional HMO Licensing

Please visit our website to check if you are eligible and read our full terms and conditions.

This has been introduced in certain parts of London where the council has evidence of a need to improve standards of quality and safety.

bit.ly/imperial-rent-guarantor

Applies to smaller shared houses and flats with three or more (unrelated) occupants from more than one household.

The scheme is managed by the Student Hub, and will allow successful applicants to rent any property up to a maximum weekly allowance.

Please note a £60 inc. VAT administration fee applies per submitted application.

WE HAVE ACTED AS GUARANTOR FOR OVER 600 STUDENTS SINCE 2017 23

RIGHT TO RENT Private landlords and agents are legally required to check the immigration status of all prospective tenants.

RIGHT TO RENT CHECKS Depending on your immigration status you will need to have the following checks:

WHAT DOCUMENTS DO I NEED TO PROVIDE? A landlord will want to see an original copy of your passport and any relevant visa document demonstrating a legal right to live in the UK. If you are unable to provide such documentation because your application is in process or you’re appealing a decision, the landlord can ask for a ‘right to rent’ check from the Home Office.

See the website for more information: www.gov.uk/check-tenant-right-to-rent-documents WHO HAS THE RIGHT TO RENT?

I have an unlimited right to rent

Right to rent checks take place before the start of your tenancy

Right to rent checks must be done within 28 days of the tenancy start date

No further checks are required for this tenancy

Your documents will need to be checked again at the following intervals:

Depending on your immigration status you will either have an unlimited right to rent or a time-limited right to rent.

CHANGES DUE TO COVID-19 As a result of COVID-19 there are temporary changes to the way you can check documents.

Read guidance about the adjusted process, including how landlords can ask for documents digitally, making checks on a video call, and what to do if a tenant cannot provide any accepted documents.

See the website for more information: www.gov.uk/ guidance/coronavirus-covid-19-landlord-right-torent-checks EU RESIDENTS

I have time-limited right to rent

Annually from the date the last checks were made Until the expiration of your ‘leave to be in the UK’ Until the expiration of the documentation which evidences your right to be in the UK

If you are an EU, EEA or Swiss citizen and need support regarding Right to Rent please read through information at: www.gov.uk/check-tenantright-to-rent-documents/how-to-check

CHECK YOUR ELIGIBILITY ON WWW.GOV.UK If you need further help or advice you can visit the International Student Support Office, Level 3, Sherfield Building 24

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SECURITY DEPOSITS

CONTRACT CHECKING AT THE STUDENT HUB

The security deposit (also known as tenancy deposit) is an amount of money that you pay to the agent/landlord for any damage and/or cleaning that may be required when you leave the property.

Top tips when it comes to signing a contract:

The return of your deposit will rely on a number of conditions laid out in your contract.

Most common causes of deductions relate to the state of the property when you leave, so be sure to have a detailed inventory to refer to. (see page 33) From 1 June 2019, the maximum tenancy deposit is equal to 5 weeks rent.

WHAT IS TENANCY DEPOSIT PROTECTION? It is an independent scheme that has been designed to ensure:

You get all or part of the deposit back when you are entitled to it.

Disputes between you and your landlord will be easier to resolve as an independent third party is involved.

Tenants and landlords/agents make a clear agreement from the start on the condition of the property.

DEPOSIT PROTECTION SCHEMES: HOW THEY WORK

Get someone to look over the contract your parents, a solicitor or the Student Hub

If the landlord/agent won’t let you take the contract away to get it checked first, think twice about signing it! Do not pay any money to the landlord/ agent until you are all happy with the contract

Some landlords or letting agents ask for a holding deposit while you look over the contract. Check this is refundable if you decide not to take the property

Make sure you get a receipt for any monies paid to the landlord/agent

Your landlord or agent must protect your deposit with an authorised scheme if you have an assured shorthold tenancy. Most private renters have this type of agreement.

GET YOUR CONTRACT CHECKED BY THE STUDENT HUB

Your landlord does not need to protect your deposit if:

Make an appointment to see one of our advisors:

Read the full contract beforehand

Prepare specific questions

Use the online contract checker, which can be found on the private accommodation page of the website:

You are living with your landlord as a lodger.

You live in the same converted building as your landlord but in a separate flat.

Your deposit should be protected in one of the following schemes: The Deposit Protection Service 0330 303 0030 www.depositprotection.com

My Deposits 0333 321 9401 www.mydeposits.co.uk

The Tenancy Deposit Scheme 0300 037 1000 www.tenancydepositscheme. com

THE AGENT OR LANDLORD HAS 30 DAYS TO PLACE YOUR DEPOSIT INTO ONE OF THESE SCHEMES

bit.ly/imperial-contract-check

IN 2019 WE HELPED OVER 220 STUDENTS CHECK THEIR CONTRACTS AND SUPPORT THEM WITH DEPOSIT ISSUES

Go to each website listed above to check if your deposit is protected.

You need a postcode, surname, tenancy start date and deposit amount to search.

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CONTRACTS Contracts are legally binding documents, ensuring both parties are clear as to the others’ responsibilities. Most contracts are for a fixed term of 9 to 12 months. If you have a longer contract, you may wish to request that a “break clause” be inserted into the contract (see page 30 for more information about break clauses).

Assured Shorthold Tenancy Agreement (AST) Is a fixed term agreement between the landlord and tenant either individually or as a group. There are various clauses within the contract that both the landlord and the tenant(s) must abide by. The main obligations are:

WHICH CONTRACT WILL I HAVE? Are you looking to rent a room and live with a live-in landlord?

yes

Assured Shorthold Tenancy Agreement

no

If you are not living with the landlord, then you will be signing an AST. There are two ways this can be applied.

Licence agreement If you become a lodger, this is the most likely contract type you will have.

When you rent as a group you most likely sign one contract with everyone’s names, meaning you are all liable for costs.

yes

no

If you are renting a room in a houseshare, but the landlord is not living there, you may have an individual AST which will set out your legal obligations and liabilities.

Licence Agreement If you live with a live-in landlord or a member of his/her family, it is likely you will have a Licence Agreement. Key aspects of this contract type are:

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The landlord can enter your room without giving notice

Pay the rent on time and in the manner specified

Keep the property clean and in good condition

Let you live in the property free from harassment (the landlord has to give reasonable (usually 24 hours) notice if he wishes to enter the property)

Not cause a noise nuisance

To protect the security deposit in one of the government schemes

Report any repairs or damage as soon as they occur (the landlord cannot be held responsible until they are informed)

To insure the building and the landlord’s contents (the landlord will not insure your belongings).

Return the property in the same condition as it was when you moved in (less fair wear and tear)

To carry out repairs within a reasonable time unless it is found to be the tenant’s neglect or misuse.

Individual AST

TYPES OF CONTRACT

Your deposit does not have to be protected in a scheme

Landlord

Are you looking to rent a whole property as a group?

Joint AST

Tenant

The landlord does not have to go to court to evict you, but would be expected to give you reasonable notice

Joint vs individual tenancies Often students with an AST sign one contract with everyone’s names included. This means you are individually and jointly liable for the cost and state of the property. In practice, this means that if one tenant stops paying rent, then the others are responsible for ensuring the full amount is paid. If you sign a group contract the landlord will charge a total rent and it is up to you to decide the proportionate share of rent for each room.

You could negotiate individual tenancies leaving you liable for the rent in your room only, but still jointly responsible for the shared rooms (e.g. kitchen) and all of the household bills.

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CONTRACTS WHAT SHOULD BE IN YOUR CONTRACT

ADDING AN ADDENDUM

VIEWINGS DURING COVID-19

Landlord’s name and address with telephone number

Property address (of the house you are renting)

“The attached tenancy agreement dated 1 February 2019 for the property 11 Mill Lane, London, WC1 1AA is being signed on the understanding that prior to the tenancy the landlord will provide the following items and will carry out the following schedule of work [date of completion].

If you’ve been on virtual viewings and found a place you liked we would strongly recommend that you don’t pay any fees or enter into any agreements until you have seen it in person.

The amount of rent to be paid

Who the rent is paid to (the agent or landlord)

When the rent is to be paid (weekly, monthly, quarterly)

Items to be provided:

Wardrobes in each bedroom

Vacuum cleaner

Name of every tenant (not just the spokesperson)

Kitchen table and chairs

Details of services offered by the landlord (e.g. cleaning, gardening and maintenance etc.)

Professionally clean property

Paint bedroom walls”

Who is responsible for the bills (are they included/excluded from rent?)

Contact details in case of an emergency

Length of notice (is there a notice period?)

Landlord’s right of access

Where the security deposit is protected or who is holding the deposit

If you have requested additional items or works to be carried out prior to the start of the tenancy, the ‘addendum to contract’ is an example of how this should be done.

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CONTRACTS AND COVID-19

Make sure you get any verbal promises in writing; your contract needs to have explicit terms (written in it) to manage the risks presented by the virus. We suggest asking to add a flexible tenancy clause into your contract that states if the accommodation or the area are not what you expected when you arrive you have a ‘cooling off’ period where you can withdraw from the agreement with a reduced notice period.

Protect yourself by adding a coronavirus clause or addendum to your agreement and use our flowchart to help you decide which clauses you might need.

View the flowchart online: bit.ly/covid-clauses

Schedule of work:

If the landlord fails to carry out the repairs or install listed items then the landlord or agent would be in breach of contract.

ADDING A BREAK CLAUSE A break clause allows the tenant to give notice and leave the property prior to the end of the tenancy without any further obligation to the contract.

If you have a joint AST and one person in the group initiates a break clause, then you all have to leave; however, if only one person wants to leave it may be possible for that person to find another tenant to replace them in the contract. Permission from the agent or landlord would be required and this may incur a cost.

SHORT-TERM ACCOMMODATION If you’re reluctant to sign a contract on a place you’ve not seen in person, you can always arrange to stay in short-term accommodation whilst you are house-hunting.

Our Private Housing COVID-19 pages have some resources for short-term accommodation bit.ly/private-housing-covid 31