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Tenant Fees
How We Support Property Investors
At WER, we offer a full range of tailored services designed to help investors maximise returns, manage risk, and grow their property portfolios with confidence.
To protect both tenants and landlords rights you’ll have to go through a series of checks, referencing and sign tenancy agreements.Â
Wer Investments Limited are members of the Property Redress Scheme (PRS) Â
Client Money Protection is provided by CMP Protect Â
We always want you to rent through us, so we don’t just organise viewings; we help you at every stage of the complex rental process, including making and agreeing an offer.
On the 1st June 2019 the UK Government introduce a Tenant Fee Ban Act, this means landlords or agents are no longer permitted to request charges onto tenants or Guarantors to make certain payments in connection with a tenancy.
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The Law also capped Tenancy Deposits and letting fees which had been charged to Tenants at the outset and throughout the tenancy There are a few exemptions from the allowed charges, these are referred as ‘Permitted Payments’.Â
We have detailed everything below to give you an idea of what to expect. NB: The rules for how fees will be charged for Assured Shorthold Tenancies (AST) are different to how fees will be charged for Non-Housing Act Tenancies (NHA).e
Housing Act Tenancies
Assured Shorthold Tenancies (AST)
An AST is the most common type of tenancy if you rent from a private landlord or letting agent.
You usually have an AST if:
· you don’t share any accommodation with your landlord and they live elsewhere
· the rent is less than £100,000 a year
· the tenant is an individual and is using the property as their main home
Permitted Payments and Charges
Rent Paid in Advance
Reservation Fee (Holding Deposit)
Equivalent of one weeks rent, which will be put towards your first rent due on completion of the tenancy. The rules for how and when we withhold any funds from your holding deposit are set out in our letter called Your ‘Holding Deposit Explained’ which is provided when your offer has been accepted.
Security deposit:
(Annual rent less than £50,000)
Capped at Five weeks’ rent –
(covers Landlord for damages or defaults)
Late, unpaid, returned rent payments:
Interest charged at 3% above the base rate of Bank of England, calculated daily from rent due date (not levied until rent is more than 14 days in arrears).
Lost, extra sets keys or security devices:
Charges for the cost of replacing extra sets or lost keys/security devices charged at £15 per hour (inc.VAT).
Variation of Contract (Tenant’s Request):
Charge of £50 (inc.VAT) for the cost of preparing and executing the new legal documents.
Early Termination (Tenant’s Request):
Charge of no more than the maximum amount of rent outstanding on the tenancy (inc.VAT) if the tenant should wish to terminate their contract early, as they are liable to the landlord’s costs in re-letting the property
Non-Housing Act Tenancies (NHA)
Common Law Tenancies
A tenancy would be created as a NHA if the rent is over £100,000 a year, or where it is not the tenant’s main home.
Company tenancies are also NHAs.
A company let is when a company takes on a residential tenancy agreement as the tenant, rather than an individual. The tenancy will be in the company name. The company employee will live in the property.
Permitted Payments and charges
Rent Paid in Advance
Reservation Fee (Holding Deposit)
Equivalent of one weeks rent, which will be put towards your first rent due on completion of the tenancy. The rules for how and when we withhold any funds from your holding deposit are set out in our letter called Your ‘Holding Deposit Explained’ which is provided when your offer has been accepted.
Security deposit:
(Annual rent more than £50,000)
Capped at Six weeks’ rent
(covers Landlord for damages or defaults)
Late, unpaid, returned rent payments:
Interest charged at 3% above the base rate of Bank of England, calculated daily from rent due date (not levied until rent is more than 14 days in arrears).
Lost, extra sets keys or security devices:
Charges for the cost of replacing extra sets or lost keys/security devices charged at £15 per hour (inc.VAT).
Variation of Contract (Tenant’s Request):
Charge of £50 for the cost of preparing and executing the new legal documents.
Early Termination (Tenant’s Request):
Charge of no more than the maximum amount of rent outstanding on the tenancy (inc.VAT) if the tenant should wish to terminate their contract early, as they are liable to the landlord’s costs in re-letting the property
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