Tenancy Agreement terms

Mozzanov

Hi,

I kind of rushed into putting down some money for a place (so that it was taken off the market) for various reasons and never saw the tenancy agreement beforehand.

Today I'm finally off work and visited the office. I didn't take some documents they wanted (as before I sign anything I wanted to read the tenancy agreement).

The first thing I was told is that those documents (an application form) were supposed to be returned within 48 hours. I had never been told this (and it's not written in the documents they sent me via email) and had told them on Friday (I had given them my debit card details over the phone on Thursday for a £250 "good faith deposit" as it's written on the document they sent me via email) I wouldn't be able to attend until Tuesday or Wednesday due to work (12 hour shifts including the weekend). The admin fee (to me) is quite high at £375 and the deposit is normal (I think) at £550 (rent is £450, but I don't know if that has any relation to the deposit).

What the document they sent me does state is:

Please note if the tenancy does not proceed due to any of the following circumstances there will be a charge to cover any reasonable costs, up to a maximum of the full deposit :-

* where you or any proposed joint tenant change your mind and withdraw after references have been sought and / or documents prepared and / or preparations for the tenancy put in hand.
* where the tenancy does not start within one calendar month of the signature of this agreement because of any action by you. (As the property will be taken off the market there will be no possibility of finding another tenant).

Anyway, I read through the tenancy agreement, although the example one I was given was not the same as the one I would sign (and apparently they couldn't give me that), but very similar and the only difference is about the place having to be "professionally cleaned" (as I mentioned I might get a cat). According to the OFT, this might be an unfair term. Although I guess not if it is explicitly limited to if I have an animal there?

I want to make sure the terms are fair and legal. A few are quite badly worded and just make my head hurt, otherwise seem very wrong (especially about the insurance).

Putting up pictures is allowed, but the terms are:

Not to fix or hang any posters, pictures, photographs or ornaments to the walls, ceilings or woodwork with nails, glue, sticky tape, blu-tac or similar adhesive fixings other than solely with a reasonable number of commercially made picture hooks appropriate for the purpose and to make good at the end of the tenancy, or be liable for the fair costs of making good any unreasonable damage, marks or holes caused by such fixing or their removal.

I was thinking about the 3M adhesive pads and hooks, but would need to confirm if these are acceptable. There isn't anywhere to hang coats, so I would probably get a coat stand, although there isn't much space for one.

Where the tenant allows the utility or other services to be cut off, by default or by specific instruction, either during, or at the end of the tenancy, to pay or be liable to pay,the costs associated with reconnecting or resuming those services.

So, I was planning to switch to a fixed rate service (like what I am currently on), but what happens when I leave, won't telling the gas and electric company that I am moving out mean the service will end?

To permit the landlord, his agent or authorised workmen access, from time to time upon a minimum of 24 hours prior written notification (except in the case of an emergency), to enter property during working hours or at other reasonable times, including the weekend, to inspect the property, its fixtures and fittings, and to do work which might be required from time to time in order to fulfil obligations under this agreement or relevant legislation.

I take it they can go on in, even when I'm not around. To be honest, due to work, 24 hours isn't much notice and what if they want to come around at what's an unreasonable time to me, like 9am after working a night shift, I want my sleep before I start another one. Do I have rights to disagree and arrange a more suitable time?

To be held liable for the fair net costs involved in carrying out repair and maintenance to the property or its fixtures and fittings where such action is a result of negligence or significant breach of this agreement.

This is standard and reasonable, I'm sure. If I break something, I should pay for it.

But according to the OFT the following _IS_ an unfair term:

Where the property is managed by the agent, to insure the possessions introduced into the property by the tenant for the duration of the tenancy, through Letscover which includes accidental damage to the Landlord’s possessions UNLESS the tenant can prove adequate cover and a copy of the insurance schedule is provided to the agent. Furthermore, the tenant agrees to pay all premiums and renewal premiums to ensure continuous cover.

I just did a quote on Lets-cover.co.uk and it's £279 per year for the insurance, which is crazy. There's no way I am willing to pay that much.

Having replaced the landlord’s items in the same area of the property (as far as is practicable) as at the commencement of tenancy, to co-operate in the checking of any inventory and or schedule of condition and to pay, or be liable to pay, up to the sum of £50 (fifty pounds) plus VAT, should the landlord or his agent be required to rectify any damages which were the responsibility of the tenant, his invited guests or visitors. Such fee being in addition to any contractors’ charges or compensation to the landlord (if any) so that the property is ready for immediate re-occupation.

(The landlord’s obligations also states, “To pay the cost of checking the inventory upon termination of the tenancy.”)

That to me is just so badly worded. Does it mean I have to pay for an inventory check? And also the landlord?

About the inventory check there is also:

If the tenant shall not keep an appointment made by the landlord or his agent to check the inventory and in case of the check out should the tenant fail to keep the appointment previously agreed or refuses to attend the property at the time of the check-out, any assessment made by the landlord or his agent of the fair and reasonable compensation or other sums payable by the tenant shall be final and binding on the tenant.

Mozzanov

Regarding the insurance, I've found an equivalent (I think):

Cover for accidental damage caused to your landlord's glass and bathroom fittings and other landlord's items you’re legally responsible for, up to 10% of your total contents cover

After cashback, that comes to about £25 (vs their £279 insurance). Whether they would accept it as an equivalent, I don't know. I'll take it out and stop by the office tomorrow.

I'm still a bit confused by the utility bills bit. It would be insane to keep an account open until a new tenant has moved in. Perhaps they just mean transfer it into the LL's name?

HappyMJ

I wouldn't put the 3M sticky adhesive pads on the wall. I'd use normal picture hooks and keep the number low.

Mozzanov

HappyMJ wrote: »

I wouldn't put the 3M sticky adhesive pads on the wall. I'd use normal picture hooks and keep the number low.

What is "make good" in reasonable terms? Fill the holes and then paint over (assuming I can find the same paint) or just fill the holes? The walls are painted magnolia and nothing fancy. I just want to make sure I'm well-prepared when I see the letting agent again tomorrow.

HappyMJ

Mozzanov wrote: »

What is "make good" in reasonable terms? Fill the holes and then paint over (assuming I can find the same paint) or just fill the holes? The walls are painted magnolia and nothing fancy. I just want to make sure I'm well-prepared when I see the letting agent again tomorrow.

Just fill the holes as long as the holes are small the white filler will blend in with the surrounding magnolia and make them more difficult to see....or just leave the picture hooks in place. The adhesive pads could pull the paint from the wall and you will have to repaint.

Hump

Have you signed it? and are you in England?

G_M

1) pictures/posters etc - this clause adds nothing to your implied obligations so ignore. You must return the property at the end of the tenancy in the same condition as it was at the start. That means either 'making good' any damage (whether you caused it by sticking up posters, or putting your fist through a window!) or paying the LL to do so (from your deposit or your pocket).

2) as above! If there are services connected/active when you move in, you must leave them connected when you move out! Or pay to re-connect. It's the same as 'damage' in principle! (leave the property as you found it) All you do at end of tenancy is tell the gas company (etc) to 'close' your account but not to 'disconnect' the service. The LL (or next tenant) then takes over the bills from that date

3) access. This is a standard right for the LandLord. Indeed an unnecessary clause, at it adds nothing to his implied right of access, and his statutory (legal)obligations to enter to make repairs, obtain annual gas safety certificate, etc. However you also have the right (whether or not written in the tenancy agreement) of 'Quiet Enjoyment' of the property - so you can always deny the LL access, despite any contract clause. Only a judge could over-rule you (though he'd be likely to do so if the LL wanted access for a reasonable purpose.

4) costs of repair - again. Totally unneccary clause. Ignore! Of course you will have o pay for repairs if you caused the damage!

5) Insurance. This is an unfair term. However, if you refuse/make an issue you are unlikely to be granted the tenancy. Solution? Take out the policy, sign the tenancy agreement (and get LL/agent's signature) then use the 14 day cooling off period for insurance to cancell and get refund. LL/agent cannot cancel a legal tenany once signed just beacuse you cancelled a 3rd party insurance! (note - agent is probobly getting commisssion for each policy sold)

6) £50 fee on top of damage. This is an unfair term. As above, not worth disputing. IF they charge this at the end of the tenancy, raise a dispute via the scheme with which the deposit is registered. Yes, you will be made to pay the COST of the damage (contractors, parts/paint etc) but NOT the extra 'fee.

7) fee for not attending at appointment. A nasty little clause, but I guess fair in that you should pay for the agents time IF there is a wasted journey and IF you fail to attend the appointment. Solution? a) make sure you attend appointments. b) An appointment must be agreed (either explicitly, or implicitly by lack of objection. So if the LL/agent says "I'm coming at 2.00 PM next thursday", you can tell him "Sorry, not convenient. Please come at 6.00 PM on Friday or some time (to be agreed) over the weekend".
If they still come at 2 on Thursday you have not missed the appointment as the appointment was cancelled. Always do this in writing.

So basically, ignore the clauses, sign the tenancy, and deal with issues if they arise.

Mozzanov

HappyMJ wrote: »

Just fill the holes as long as the holes are small the white filler will blend in with the surrounding magnolia and make them more difficult to see....or just leave the picture hooks in place. The adhesive pads could pull the paint from the wall and you will have to repaint.

That makes sense. I'll see what the LA has to say tomorrow.

Hump wrote: »

Have you signed it? and are you in England?

No, I haven't signed yet. I am in England.

Mozzanov

1) pictures/posters etc - this clause adds nothing to your implied obligations so ignore. You must return the property at the end of the tenancy in the same condition as it was at the start. That means either 'making good' any damage (whether you caused it by sticking up posters, or putting your fist through a window!) or paying the LL to do so (from your deposit or your pocket).

G_M wrote: »

2) as above! If there are services connected/active when you move in, you must leave them connected when you move out! Or pay to re-connect. It's the same as 'damage' in principle! (leave the property as you found it) All you do at end of tenancy is tell the gas company (etc) to 'close' your account but not to 'disconnect' the service. The LL (or next tenant) then takes over the bills from that date

Thank you, that makes much more sense now.

G_M wrote: »

3) access. This is a standard right for the LandLord. Indeed an unnecessary clause, at it adds nothing to his implied right of access, and his statutory (legal)obligations to enter to make repairs, obtain annual gas safety certificate, etc. However you also have the right (whether or not written in the tenancy agreement) of 'Quiet Enjoyment' of the property - so you can always deny the LL access, despite any contract clause. Only a judge could over-rule you (though he'd be likely to do so if the LL wanted access for a reasonable purpose.

I have no problem with access, as long as it's mutually reasonable. I believe other shift workers (nurses) live in flats there, too, so hopefully the LA will be understandable.

G_M wrote: »

5) Insurance. This is an unfair term. However, if you refuse/make an issue you are unlikely to be granted the tenancy. Solution? Take out the policy, sign the tenancy agreement (and get LL/agent's signature) then use the 14 day cooling off period for insurance to cancell and get refund. LL/agent cannot cancel a legal tenany once signed just beacuse you cancelled a 3rd party insurance! (note - agent is probobly getting commisssion for each policy sold)

Well, if they won't accept the insurance I've found, then I won't go with them. It would be a shame to miss out on the place, but it's a warning sign of what else could be ahead if they want to stick to such an unfair term.

Thank you for all your helpful advice.

Mozzanov

There were too many questionable terms and odd attitude by the LA. I had returned to talk to them about it and the fact is they wouldn't show me the agreement I would be signing. The one provided was "similar" (so they claimed) except for a couple of things and it just kept on turning out to be more things that were different. So, the money (holding deposit) has been retrieved in full (despite them trying to keep it). The cheque was finally received yesterday. Now I'm looking (for the second time) to buy instead, before committing to renting yet again.

Thanks again to everyone for their time and advice.

mart.vader

Mozzanov wrote: »

There were too many questionable terms and odd attitude by the LA. I had returned to talk to them about it and the fact is they wouldn't show me the agreement I would be signing. The one provided was "similar" (so they claimed) except for a couple of things and it just kept on turning out to be more things that were different. So, the money (holding deposit) has been retrieved in full (despite them trying to keep it). The cheque was finally received yesterday. Now I'm looking (for the second time) to buy instead, before committing to renting yet again.

Thanks again to everyone for their time and advice.

I think you have done the right thing.

When you consider your next Tenancy agreement, I would advise against just ignoring any dodgy clauses in the agreement.

In my admittedly limited experience, the courts do not understand / recognise the meaning of "Unfair Terms" in agreements. I was told by a judge last year, "If you signed it, you are bound by it" : https://forums.moneysavingexpert.com/discussion/comment/54375605#Comment_54375605

The agreement in your case has some things that I would object to. (and I would cross them out, sign it, and return it. - If that meant that I didn't get the flat, then so be it)

1) There is a necessity to get the flat "professionally cleaned" at the end of the tenancy. There has been some discussion on this forum to the effect that this is not enforceable. You or someone else that you employ as an "amateur" cleaner might do a better job than a professional cleaner, and what is a professional cleaner ? Someone who provides an invoice after their work ? Most reasonable agreements require that the property is returned in as clean a state as it was when you got it. Thread here : https://forums.moneysavingexpert.com/discussion/comment/59026745#Comment_59026745

2) Admin fee at £375 seems excessively high. Can they justify this ?. They are already charging the LL around 6% to 10% as their fees for tenant finding etc.

3) The clause for access for LL or his workmen to get in with 24 hours notice, except emergencies is fairly standard.

4) The clause making you use their insurers is IMO "Unfair". I'd cross it out, but see above.

5) The clause requiring you to pay £50 for damages in addition to the costs of repair, and co-operate in the checking of the inventory, is IMO Unfair. You are already liable to pay the costs of repair in other parts of the agreement. Why should you pay for the LL/ LA to check their inventory ? (Particularly if the LL is also liable to pay the cost of checking it)

6) The last clause you refer to, is also IMO Unfair, but I suppose you could make sure that you attend all mutually agreed check-out appointments. You could insert your own clause stating that if the LL / LA "fails to keep any appointment previously agreed or refuses to attend the property at the time of the check-out", they pay you "fair and reasonable compensation".

As I said above , they may just decide you're not a suitable tenant.