Tenancy Terms

James Bovey, Head of Property Finding

Building on our previous blog, “How to Secure the Right Rental Property,” we now delve into the next crucial stage once an agreement to rent is reached in principle. This phase is vital in ensuring the affordability of the rental and safeguarding our client’s position throughout the process.

Managing this process smoothly is essential, as it can become quite complex. Effective management ensures a seamless transaction, giving the client the confidence to proceed.

Rental Amount

Since 2020, the UK rental market has faced a significant shortage of available properties, making it increasingly unlikely that landlords will accept offers below the advertised rent.

Before submitting an offer, it’s important to assess several factors:

How long the property has been on the market
Whether there is other interest
The condition of the property
Whether the landlord intends to undertake any works before or during the tenancy

After evaluating these points, you will be better placed to submit a reasonable offer.

Given the current market conditions, landlords are generally less inclined to accept lower offers. While some clients may propose paying 12 months’ rent upfront, we advise against this. Offering a large sum upfront can be risky — particularly when you are unsure whether the landlord will reliably adhere to their obligations under the tenancy agreement. Our clients are ordinarily more financially secure than other tenants and should be able to pass the usual referencing process.

Length of Tenancy

The length of the tenancy will depend on the client’s individual needs and circumstances.

Often, we work with clients who may require a property on a trial basis, such as for six months, or for a longer, indefinite period. In some cases, adaptations may need to be made to the property, which can delay move-in and incur significant costs.

To ensure security for the client and minimise the risk of hasty decisions, we typically recommend securing the longest tenancy possible — three years is generally the maximum for a fixed-term agreement.

However, if the client prefers flexibility, we can include a tenant-only break clause which can be executed any time after the first 12 months, allowing them the option to exit the agreement early if their circumstances change.

Referencing

At this stage, letting agents often need additional guidance on how to handle the referencing process, particularly regarding how funds are acquired.

When agents ask whether a potential tenant is employed, responses such as “no” from family members can often cause them to lose interest and prioritise other offers. This is where educating the agent becomes key.

We advise them that our clients can pass the referencing process through their preferred referencing supplier. We also assist in securing a proof-of-funds letter with the necessary wording, alongside a brief on the client’s situation and, when appropriate, a Deputyship Order.

Our long-established relationships with referencing agencies make this process straightforward.

Reviewing the Assured Shorthold Tenancy (AST) Agreement

Once the application and referencing process is complete, we turn our attention to the AST. These documents can vary significantly in complexity and content. In the excitement of securing a property, tenants may be tempted to sign quickly — but this can lead to issues later.

For example, we once dealt with four rentals through the same corporate letting agent. Despite this, the ASTs differed significantly between branches.

Our role is to ensure:

The terms are fair
Any negotiated additions are included
Unenforceable clauses are challenged and removed

Key Areas We Focus On

Tenant-Only Break Clause: Must be clearly defined within the agreement
Adaptations: Any agreed-upon adaptations must be explicitly stated
Reinstatement Clause: Ensures the property is returned in suitable condition (fair wear and tear considered)
Permitted Occupiers: Family members can be included as non-paying residents when the tenancy is held by a client or their deputy
Inspection Notice Period: We seek to extend the standard 24-hour notice period to 72 hours, supporting clients who may have therapy or medical routines
Tenant Fees Act 2019 Compliance: We check for clauses regarding outdated or prohibited fees and request their removal

We report all findings to the client and their legal representatives. Once agreed, the agent sends the final contract for signing, and, once done, we advise on transferring the move-in funds.

At this stage, we also ensure the provision of all legally required documentation to include:

Energy Performance Certificate (EPC)
Gas Safety Certificate (if applicable)
Deposit registration details

Finally, we arrange for key collection and an Inventory and Schedule of Condition inspection.

What is an Inventory and Schedule of Condition?

Upon receiving the keys, tenants may overlook the importance of this document. But this report is crucial in protecting against future disputes.

The Inventory Includes:

A list of all contents, including furniture, appliances, fixtures, manuals, and remote controls
Photos of each item and area, documenting condition at move-in

The Schedule of Condition Documents:

The property’s overall physical condition
Existing damage or wear and tear
Cleanliness and functionality
A room-by-room breakdown with photographic or video evidence

Any discrepancies should be noted before signing and returning the document. This should be done within seven days, along with any supporting photos or videos. After that, clients can move in, or any agreed adaptations can begin.

The Process We’ve Refined

Our streamlined process ensures tenancy matters are managed efficiently and in the best interests of our clients. We work to secure the most favourable tenancy terms and provide the structure and support clients need to feel secure.