When renting a property, there are various costs that you will need to take into consideration when making an offer.
Below, we have outlined the applicable charges payable when renting a home from Knights Property Services. We believe in being completely upfront regarding our fees – so you can manage the cost effectively and don’t have to worry about any hidden charges along the way.
Relevant letting fees and tenant protection information when renting through us.
In addition to paying rent for the property (payable in advance) you may also be required to make the following permitted payments:
Before the tenancy starts:
- Holding Deposit: equivalent to 1 week’s rent; and
- Deposit: equivalent to 5 weeks rent.
- Companies seeking to rent a property will be required to pay £300 including VAT (£250 plus VAT) for the completion of a Company Reference carried out by an independent referencing agency.
During the tenancy some charges may apply:
- Payments to other third parties: such as Council Tax, utilities or payments for communications services;
- Default Charges: such as payments for the replacement of lost keys or interest on overdue rent may be applied.
- Tenancy Changes: such as requests to vary the terms of or reassign the tenancy may also be applied which will be limited to £50 including VAT (£41.67 plus VAT).
We may consider numerous tenancy applications for a property but will not collect a Holding Deposit until initial enquiries have been completed and the Landlord’s approval to proceed to formal referencing for a specific party has been obtained.
Holding Deposits will be paid towards the Tenancy Deposit upon commencement of the Tenancy where successful referencing and statutory checks have been completed.
A Holding Deposit will be retained by Knights Property Services where a prospective tenant:
- Withdraws from contract before entering into the tenancy agreement
- Provides false information for referencing purposes
- Fails to act reasonably to enter into the tenancy before the deadline for agreement
- Fails ‘Right to Rent’ checks
Loss of Deposit
If you fail referencing you will lose your deposit, however if you fail the referencing due a CCJ or Bankruptcy which hasn’t been declared by yourself your deposit will be forfeit due to the cost incurred for references. A guarantor will be required if the Landlord decides to proceed with the tenancy and this is at the landlord discretion , alternatively the rent will need to be paid up front.
As a landlord you will need to factor the following:
We believe in being completely upfront regarding our fees – so you can manage the cost effectively and don’t have to worry about any hidden charges along the way
The percentages below are applied in each case to the monthly rent payable by the tenant under the tenancy agreement, and are all inclusive of VAT.
1. Sole Agency
Rent Collection Service – 14.4%
Fully Managed Service – 18%
2. Joint Agency
Rent Collection Service – 16.8%
Fully Managed Service – 20.4%
3. Let Only Service
10.8% for sole agency for initial 12 month and then 5.4% for any extension whether a fixed term or on a periodic basis
13.2% for joint agency for initial 12 month and then 6.6% for any extension whether a fixed term or on a periodic basis
A set up fee is payable of £432 Inc. Vat to cover initial administration costs.
Set Up Fee ( Landlords Share ) – This charge covers the following; Photographs and Marketing, Negotiating of tenancy offer, Accompany viewings, Arranging of tenant referencing, Advise of Landlord compliance and letting consents required, Drawing up of Tenancy Agreements and exchanging the same.
4. Services relating to any Court or Tribunal proceedings or any protracted correspondence between Knights and the Tenant where Knights is instructed to act on the Landlords behalf – £300 Inc. VAT for up to a half day’s work or £600 Inc. VAT for a whole days work.
Knights Property Services are members of the Property Ombudsman being the largest lettings redress scheme in the UK.