Tenant Referencing & Reservation Process
Once a property has been marketed and a prospective tenant found, the next step is to assess their suitability and ability to sustain the tenancy.
To reserve a property, applicants are normally required to pay a holding deposit equivalent to one week’s rent in accordance with the Tenant Fees Act 2019. Referencing is then carried out through FCC Paragon and may include:
- Identity verification;
- Credit history checks;
- Employment and affordability assessments;
- Previous landlord references where appropriate;
- Right to Rent checks in accordance with immigration legislation.
While referencing helps assess suitability, neither Whites Residential Lettings Ltd nor any referencing provider can guarantee tenant conduct, payment of rent, property condition or vacant possession.
Most residential tenancies are periodic assured tenancies under the current Renters’ Rights Act framework. Tenancy agreements are tailored to the type of property, including student accommodation and HMOs where applicable.
Once referencing is complete and terms agreed, tenancy agreements are signed electronically and the tenancy start date confirmed.
Inventories & Deposit Protection
A detailed inventory and schedule of condition should be prepared before occupation. This includes the condition of decoration, flooring, fixtures, furnishings and any supplied items, supported by photographs and video evidence where appropriate.
Tenancy deposits must be protected within a government approved tenancy deposit protection scheme in accordance with current legislation. Inventories can form important evidence in the event of a dispute relating to damage, cleaning or missing items.
At the end of the tenancy, deposits will be returned in accordance with the rules of the relevant tenancy deposit scheme, allowing for fair wear and tear.
Utilities & Council Tax
Utility providers and local authorities should be informed when a tenancy begins and ends. Unless otherwise agreed, tenants are generally responsible for utility charges and council tax during their occupation.
Meter readings should be recorded at the start and end of the tenancy to minimise disputes and ensure accurate billing.
Where a property becomes vacant, responsibility for utility charges, council tax and ongoing property costs usually returns to the landlord.
Insurance, Mortgages & Permissions
Before letting a property, landlords should notify:
- Their buildings insurer;
- Mortgage lender;
- Freeholder or managing agent where applicable.
Some lenders and insurers require specialist landlord products or formal consent to let. Leasehold properties may also require permission from the freeholder before occupation by tenants.
Landlords are responsible for insuring any contents provided within the property, while tenants are responsible for arranging their own personal possessions insurance.
Keys & Property Information
A suitable number of keys should be provided for all tenants together with any relevant alarm codes, manuals and operating instructions for appliances, heating systems and equipment within the property.
Rent Protection & Legal Expenses Cover
Whites Residential Lettings Ltd can introduce landlords to independent rent protection and legal expenses providers, including policies available through FCC Paragon.
Depending on the policy selected, cover may include:
- Rent arrears protection;
- Legal expenses relating to possession proceedings;
- Court attendance costs where covered by the insurer.
All insurance products remain subject to underwriting criteria, policy exclusions and changing insurer terms. Whites cannot guarantee insurer acceptance or claim outcomes.
Taxation
Rental income is generally taxable and landlords may be able to offset allowable expenses against rental income in accordance with HMRC guidance. These may include:
- Mortgage interest where applicable;
- Repairs and maintenance;
- Insurance;
- Letting agency fees.
Landlords should seek independent advice from an accountant or tax adviser regarding income tax, capital gains tax and non resident landlord obligations where applicable.
The End of a Tenancy & Possession
Under the current Renters’ Rights Act framework, residential tenancies generally operate as periodic tenancies and possession can only be sought using the statutory grounds set out in legislation.
Landlords may be entitled to seek possession using grounds including, but not limited to:
- Serious or persistent rent arrears;
- Repeated late payment of rent;
- Breach of tenancy obligations;
- Anti social behaviour or nuisance;
- Damage to the property;
- False or misleading information provided by the tenant;
- The landlord intending to sell the property;
- The landlord or a close family member intending to occupy the property as their main residence;
- Redevelopment, substantial refurbishment or major works requiring vacant possession;
- Loss of HMO licensing or other legal restrictions affecting occupation where applicable.
The relevant legal notice must be served correctly and all prescribed legal obligations complied with before court proceedings can commence. This may include compliance with:
- Tenancy deposit protection requirements;
- Gas Safety Regulations;
- Electrical Safety Regulations;
- Energy Performance Certificate requirements;
- Right to Rent obligations where applicable;
- Any other prescribed legal requirements in force at the time.
Notice periods and possession procedures vary depending on the possession ground being relied upon and may change in accordance with legislation and court procedures.
Where possession proceedings become necessary, landlords may need to provide supporting evidence to the court, including rent schedules, inspection reports, tenancy correspondence, proof of service and evidence of compliance with statutory obligations.
If the tenant remains in occupation after notice expiry, possession can generally only be enforced through the court process and, where required, enforcement officers.
Once the property becomes vacant, responsibility for utility charges, council tax, insurance, security and ongoing property costs returns to the landlord until a new tenancy commences.