Common use of Before You Start Clause in Contracts

Before You Start. Key questions □ Is the landlord or letting agent trying to charge any fees? For example, for holding the property, viewing the property or setting up a tenancy agreement? Since 1 June 2019, most fees charged in connection with a tenancy are banned. A charge to reserve a property is permitted but it must be refundable and it cannot equate to more than 1 weeks’ rent. Viewing fees and tenancy set-up fees are not allowed. See ‘Permitted fees’ below for more details. □ How much is the deposit? Since 1 June 2019, there has also been a cap on the deposit that the tenant is required to pay at the start of the tenancy. If the total annual rent is less than £50,000, the maximum deposit is 5 weeks’ rent. If the annual rent is £50,000 or above, the maximum deposit is 6 weeks’ rent. The deposit must be refundable at the end of the tenancy, usually subject to the rent being paid and the property being returned in good condition, and it must be ‘protected’ during the tenancy. See ‘Deposit protection’ below. □ How long do you want the tenancy for? The landlord must allow you to stay in the property for a minimum of 6 months. Most landlords offer tenancies for a fixed term of 6 or 12 months. However, it is possible to negotiate a longer tenancy. Alternatively, you could agree to a tenancy which rolls over on a weekly or monthly basis. These tenancies have no fixed end date, but the landlord must allow you to stay in the property for at least 6 months. □ What can you afford? Think about how much rent you can afford to pay: 35% of your take-home pay is the most that many people can afford, but this depends on what your other outgoings are (for example, whether you have children). □ Are you are entitled to Housing Benefit or Universal Credit? If so, you may get help with all or part of your rent. If you are renting from a private landlord you may receive up to the Local Housing Allowance (LHA) rate to cover or help with the cost of rent. Check with this online calculator to see if you can afford to live in the area you want. You should also look at this advice about managing rent payments on Universal Credit. □ Which area you would like to live in and how you are going to look for a rented home? The larger the area where you are prepared to look, the better the chance of finding the right home for you. □ Do you have your documents ready? Landlords and agents will want to confirm your identity, immigration status, credit history and possibly employment status. □ Do you have the right to rent property? Landlords in England must check that all people aged 18 or over, living in their property as their only or main home have the right to rent. Landlords must carry out this check before the start date of your tenancy agreement. There are two types of right to rent checks; a manual document-based check or a check via the Home Office online checking service. Your landlord can’t insist which option you choose but not everyone can use the online service. Further information on how to prove your right to rent to a landlord can be found on XXX.XX. □ Will you need a rent guarantor? Some landlords might ask someone to guarantee your rent. If you don’t have a guarantor, you can ask Shelter for advice. Ways to rent a property Direct from the landlord Through a letting agent □ Look for landlords who belong to an accreditation scheme. Accreditation schemes provide training and support to landlords in fulfilling their legal and ethical responsibilities. Your local authority can advise you about accreditation schemes operating in your area. The National Residential Landlords Association and the Guild of Residential Landlords run national schemes. □ Letting agents must be a member of a redress scheme. You should check which independent redress scheme the agent is a member of in case you have an unresolved dispute. □ If they receive money from you such as rent payments, you should also check they are a member of a client money protection scheme. See a list of approved schemes. By law, this information should also be clearly visible to you at the agent’s premises and on their website. □ Reputable agents are often accredited through a professional body such as ARLA Propertymark, GPP , Safeagent, RICS or UKALA. Watch out for scams! Be clear who you are handing money over to, and why.

Before You Start. Key questions □ Is the landlord or letting agent trying to charge any fees? For example, for holding the property, viewing the property or setting up a tenancy agreement? Since 1 June 2019, most fees charged in connection with a tenancy are banned. A charge to reserve a property is permitted but it must be refundable and it cannot equate to more than 1 weeks’ rent. Viewing fees and tenancy set-up fees are not allowed. See ‘Permitted fees’ below for more details. □ How much is the deposit? Since 1 June 2019, there has also been a cap on the deposit that the tenant is required to pay at the start of the tenancy. If the total annual rent is less than £50,000, the maximum deposit is 5 weeks’ rent. If the annual rent is £50,000 or above, the maximum deposit is 6 weeks’ rent. The deposit must be refundable at the end of the tenancy, usually subject to the rent being paid and the property being returned in good condition, and it must be ‘protected’ during the tenancy. See ‘Deposit protection’ below. □ How long do you want the tenancy for? The landlord must allow you to stay in the property for a minimum of 6 months. Most landlords offer tenancies for a fixed term of 6 or 12 months. However, it is possible to negotiate a longer tenancy. Alternatively, you could agree to a tenancy which rolls over on a weekly or monthly basis. These tenancies have no fixed end date, but the landlord must allow you to stay in the property for at least 6 months. □ What can you afford? Think about how much rent you can afford to pay: 35% of your take-home pay is the most that many people can afford, but this depends on what your other outgoings are (for example, whether you have children). □ Are you are entitled to Housing Benefit or Universal Credit? If so, you may get help with all or part of your rent. If you are renting from a private landlord you may receive up to the Local Housing Allowance (LHA) rate to cover or help with the cost of rent. Check with this online calculator to see if you can afford to live in the area you want. You should also look at this advice about managing rent payments on Universal Credit. □ Which area you would like to live in and how you are going to look for a rented home? The larger the area where you are prepared to look, the better the chance of finding the right home for you. □ Do you have your documents ready? Landlords and agents will want to confirm your identity, immigration status, credit history and possibly employment status. □ Do you have the right to rent property? Landlords in England must check that all people aged 18 or over, living in their property as their only or main home have the right to rent. Landlords must carry out this check before the start date of your tenancy agreement. There are two types of right to rent checks; a manual document-based check or a check via the Home Office online checking service. Your landlord can’t insist which option you choose but not everyone can use the online service. Further information on how to prove your right to rent to a landlord can be found on XXX.XX. □ Will you need a rent guarantor? Some landlords might ask someone to guarantee your rent. If you don’t have a guarantor, you can ask Shelter for advice. Ways to rent a property Direct from the landlord Through a letting agent □ Look for landlords who belong to an accreditation scheme. Accreditation schemes provide training and support to landlords in fulfilling their legal and ethical responsibilities. Your local authority can advise you about accreditation schemes operating in your area. The National Residential Landlords Association and the Guild of Residential Landlords run national schemes. □ Letting agents must be a member of a redress scheme. You should check which independent redress scheme the agent is a member of in case you have an unresolved dispute. □ If they receive money from you such as rent payments, you should also check they are a member of a client money protection scheme. See a list of approved schemes. By law, this information should also be clearly visible to you at the agent’s premises and on their website. □ Reputable agents are often accredited through a professional body such as ARLA Propertymark, GPP , Safeagent, RICS or UKALA. Watch out for scams! Be clear who you are handing money over to, and why.

Before You Start. Key questions □ It’s important to get your lodgings arrangement off to a great start. We’re here to help you prepare. Your home Your lodger’s accommodation should be decent and secure. You can obtain full guidance from the Environmental Health department of your local council – but you should consider: • Gas safety – you should get a landlord’s gas safety certificate issued. Most gas engineers will be able to issue these in addition to an annual gas safety check. • Fire – are there working fire alarms in communal spaces and in bedrooms? • Damp and condensation – can the bathroom and bedrooms be ventilated adequately? Can draughts be prevented? Has any damp/mould been treated? • Cooking and washing – is there a bathroom that the lodger can use? Is this shared? Are there facilities for storing, preparing and cooking food? You should also consider those in the landlord or letting agent trying family and those visiting. Do they support the idea of a lodger? Do they have their own private space if they need it? Your possessions It’s a good idea to charge any fees? For example, have a safe place for holding the property, viewing the property or setting valuable possessions and documents. You may also wish to draw up a tenancy agreement? Since 1 June 2019house inventory at the point of moving in, most fees charged including any furniture and fittings within the lodger’s room and other shared areas. You should update your home and contents insurance so that your insurers know you have a lodger staying in connection your house. House rules You should consider agreeing basic house rules with your lodger. It’s worth talking these through with your lodger so you’re both happy with them. Here are some points you could consider: • Cleaning of kitchen / communal areas; • Use of kitchen / bathroom; • Contribution towards “kitty” items (tea, sugar, washing up liquid, etc) • Overnight stayers (including children); • Noise / music. Rent and bills We will discuss with you a rate of rent payment that will be in line with market rates and in line with what a lodger would be likely to afford to pay. The rent should provide you with a tenancy are bannedsupplementary income whilst providing the lodger with good quality, affordable accommodation. A charge You may wish to reserve a property is permitted but it must be refundable and it cannot equate to more than 1 weeks’ rent. Viewing fees and tenancy set-up fees are not allowed. See ‘Permitted fees’ below for more details. □ How much is the deposit? Since 1 June 2019, there has also been a cap on the deposit that the tenant is required to pay at the start of the tenancy. If the total annual rent is less than £50,000, the maximum deposit is 5 weeks’ rent. If the annual rent is £50,000 or above, the maximum deposit is 6 weeks’ rent. The deposit must be refundable at the end of the tenancy, usually subject to the rent being paid and the property being returned in good condition, and it must be ‘protected’ during the tenancy. See ‘Deposit protection’ below. □ How long think about: • Rent frequency – do you want the tenancy forrent to be paid weekly? The landlord must allow Monthly? On what day of the month? You may wish to discuss this with your lodger so that payment due dates match up with when they receive income. • Bills – are you going to stay include bills in the property for a minimum cost of 6 months. Most the rent? Many landlords offer tenancies for find it easier to include a fixed term of 6 or 12 months. However, it is possible to negotiate a longer tenancy. Alternatively, you could agree to a tenancy which rolls over on a weekly or monthly basis. These tenancies have no fixed end date, but the landlord must allow you to stay amount in the property for at least 6 monthsmonthly rent to cover utility costs. □ What can you afford? Think about how much You may wish to specify any costs that would not be included in the rent you can afford to pay: 35% of your take-home pay is the most that many people can afford, but this depends on what your other outgoings are (for example, whether you have childrensuch as itemised telephone calls). □ Are • Collection – are you are entitled going to Housing Benefit keep a rent book? Would you accept payment in cash or Universal Creditby standing order? If soIt is important that you keep a clear record of what is agreed and paid, in the event of any disputes. Tax and benefits Any income you receive from lodgers will be subject to tax; however, you may get help with all or part wish to opt into the government’s Rent-a-Room scheme. This scheme enables you to receive up to £7,500 per year rental income tax-free. For more details, visit xxx.xxx.xx/xxxx-xxxx-xx-xxxx-xxxx The impact on your benefits will depend on your circumstances. Your local Citizens Advice Bureau will be able to provide a full calculation of your rentthe likely impact. If you are renting receive means-tested benefits (such as Employment Support Allowance, Jobseekers Allowance, Housing Benefit and Tax Credits), taking in a lodger will have an impact on the amount you receive. You will need to declare the income you receive from a private landlord you may receive up your lodger to the Local Housing Allowance (LHA) rate relevant benefits agencies. One way to cover or help with reduce the cost impact of rentlodging income on your benefits is to provide a boarding arrangement rather than a lodging arrangement. Check with this online calculator to see if you can afford to live in The key difference is that a boarding arrangement includes the area you want. You should also look at this advice about managing rent payments on Universal Credit. □ Which area you would like to live in and how you are going to look for a rented home? The larger the area where you are prepared to lookprovision of food – usually, the better the chance of finding the right home for you. □ Do you have your documents ready? Landlords and agents will want to confirm your identity, immigration status, credit history and possibly employment status. □ Do you have the right to rent property? Landlords in England must check that all people aged 18 or over, living in their property as their only or main home have the right to rent. Landlords must carry out this check before the start date of your tenancy agreement. There are two types of right to rent checks; a manual document-based check or a check via the Home Office online checking service. Your landlord can’t insist which option you choose but not everyone can use the online service. Further information on how to prove your right to rent to a landlord can be found on XXX.XX. □ Will you need a rent guarantor? Some landlords might ask someone to guarantee your rentmeals. If you don’t have receive a guarantorsingle person’s discount on your Council Tax, you can ask Shelter for advice. Ways to rent may lose this take on a property Direct from the landlord Through a letting agent □ Look for landlords who belong to an accreditation scheme. Accreditation schemes provide training and support to landlords in fulfilling their legal and ethical responsibilities. Your local authority can advise you about accreditation schemes operating in your area. The National Residential Landlords Association and the Guild of Residential Landlords run national schemes. □ Letting agents must be a member of a redress schemelodger. You should check which independent redress scheme the agent is a member of in case you will need to inform your local council that your circumstances have an unresolved dispute. □ If they receive money from you such as rent payments, you should also check they are a member of a client money protection scheme. See a list of approved schemes. By law, this information should also be clearly visible to you at the agent’s premises and on their website. □ Reputable agents are often accredited through a professional body such as ARLA Propertymark, GPP , Safeagent, RICS or UKALA. Watch out for scams! Be clear who you are handing money over to, and whychanged.