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In line with the requirements outlined within Renting Homes (Fees etc.) (Wales) Act 2019, you are required to pay a refundable holding deposit equivalent to one week’s rent in order to reserve a property.
In line with The Renting Homes (Fees etc.) (Prescribed Limits of Default Payments)(Wales) Regulations 2020 the late rent fee is 3% APR after 7 days of late payment. Other default fee’s and charges that are applicable during a tenancy are as follows: Rent, Security Deposit, Holding Deposit to reserve a property (Refundable), Late payment of rent, Replacement of lost keys, Council Tax, Utilities, TV Licence and Communication Services.
The purpose of the holding deposit is to enable both the landlord and tenant to demonstrate a commitment to entering into a tenancy agreement on the terms agreed whilst reference checks are undertaken. The holding deposit creates a binding conditional contract between tenant and landlord.
Under this contract, the tenant agrees to provide honest representations as to income, tenancy history, and references, and to enter into the tenancy under the terms agreed with the landlord.
The landlord agrees to enter into the tenancy as per the agreed terms subject to satisfactory fulfilment of all pre-tenancy checks. The ‘deadline for agreement’ for both landlord and tenant will be within 15 calendar days from the date that the holding deposit has been received by the landlord or letting agent.
The tenancy agreement must be signed by all parties within 15 calendar days from receipt of the holding deposit.
The tenant will be notified of any extension to the 15-day deadline in writing. The tenant must request an extension to the 15-day deadline in writing.
The property will be withdrawn from the market pending referencing.
The holding deposit will be retained by the landlord/letting agent if false or misleading information is provided which affects a decision to let the property and calls into question your suitability as a tenant.
The holding deposit will be retained by the landlord/letting agent if you withdraw from the proposed agreement.
The holding deposit will be retained by the landlord/letting agent if you fail to take all reasonable steps to enter an agreement when the landlord and/or agent has done so.
If we intend to retain the holding deposit, we will advise you in writing the reason for this within 7 days of deciding not to enter an agreement.
The holding deposit will be refunded to you if the landlord withdraws from this agreement or the deadline agreement is not met.
A Guarantor will need to own their own home as well as earn 2.5 times the annual rent to support the tenancy.
Should you be accepted to act as a guarantor following checks and references, the following conditions and obligations will be applicable. The below information will be provided to tenant/guarantor in writing when signing for the tenancy:
That the Tenant shall pay the rent reserved in the Agreement on the days and in the manner aforesaid and shall perform and observe all the obligations on the part of the Tenant contained in the Agreement; and
That in the case of default in the payment of such rent or in the performance or observance of such obligations, the guarantor shall pay and make good to the Landlord on demand all losses damages costs (including legal costs) and expenses thereby arising or incurred on an indemnity basis PROVIDED THAT any neglect or forbearance by the Landlord in endeavouring to obtain payment of the rent reserved by the Agreement when the same becomes payable or to enforce performance or observance of the several obligations on the Tenant’s part therein contained, or any time to pay which may be given to the Tenant by the Landlord, shall not release or exonerate or in any way affect the liability of the Guarantor under this indemnity
That the provisions of this indemnity shall apply to any increased rental and/or to any continuation extension renewal or re-grant of the tenancy created by the Agreement whether by operation of law or agreement between the Landlord and the Tenant or otherwise as if this indemnity were incorporated in full in such continued extended renewed or re-granted tenancy (as the case may be) and for the avoidance of doubt the Guarantor hereby agrees with the Landlord that the Tenant shall pay the rent reserved by such continued extended renewed or re-granted tenancy (as the case may be) and shall perform and observe all the obligations on the part of the Tenant therein contained.
Any demand shall be valid if sent by post or left at the Guarantor’s address specified above or such other address as the Guarantor may notify to the Landlord in writing as to whether any such demand should be sent, so long as a receipt for such notification of the alternative address is issued by the Landlord.
For the avoidance of any doubt the guarantor confirms that he is aware that if he wishes to end his obligation at the end of the fixed term or after this or any other fixed term has finished he is required to give two months’ written notice on or before the contracted payment date. If the tenancy is not renewed at the end of the fixed period the tenancy will automatically revert to a periodic tenancy (a month by month arrangement). This periodic tenancy will require two months’ notice from the guarantor to terminate the agreement. Any notices must be served on or before the due date and notices can be served at any time during the periodic tenancy.
How do we ensure our tenants are protected?
We are a registered member of the Propertymark Client Money Protection Scheme. This is a client money protection scheme to ensure your money is handled within the correct manner. Download a copy of our Propertymark Client Money Protection Certificate here.
To review the PropertyMark Membership Rules and Conduct that we adhere to, click here.
We are also members of The Property Ombudsman, which is a redress scheme for consumer complaints.
