We are a member of Propertymark (which includes their Client Money Protection Scheme) and The Property Ombudsman.
The information given below is provided to ensure you are fully informed of any fees and costs involved in renting a property through Orchid Homes.
Tenancy Deposit
A Tenancy Deposit is money held by the landlord (or agent acting on the landlord’s behalf) as security during the period of the tenancy and reserved for any damages or defaults by the tenant.
Tenancy Deposits are capped at five weeks’ rent where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is less than £50,000 a year and six-weeks’ rent where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is £50,000 or more a year.
Holding Deposit
A Holding Deposit is a payment made by a tenant to a landlord (or to an agent acting on the landlord’s behalf) to reserve that property.
NB: If the amount of Holding Deposit exceeds one week’s rent, the amount of the excess is a Prohibited Payment.
One week’s rent means the amount of annual rent payable in respect of the tenancy immediately after its grant, renewal or continuance divided by fifty-two.
RETAINING THE HOLDING DEPOSIT
The landlord or letting agent who received the Holding Deposit can keep it if the tenant:
- Fails a Right to Rent check regardless of when the deposit was accepted
- Provides false or misleading information to the landlord or letting agent, which the landlord is reasonably entitled to consider in deciding whether to grant the tenancy because this materially affects their suitability to rent the property
- Notifies the landlord or letting agent before the deadline for agreement that they have decided not to enter into a tenancy agreement
- fails to take all reasonable steps to enter into a tenancy agreement
Changes to a tenancy
A change to a tenancy is any reasonable request to alter a tenancy agreement, after the tenancy agreement has become binding. Examples of commonly-requested changes are:
- To be able to keep a pet at the property
- To change one of the tenants on a joint tenancy
- To be given permission to decorate or alter the property
A charge can be made for any other amendment which alters the tenant’s obligations in the agreement.
£50 per agreed variation.
Early termination fees:
Claims for deposit deductions can still be made in connection with the early termination of the tenancy if a tenant has requested this (other than when exercising a break clause in accordance with the terms of the tenancy agreement).
For example, a landlord or agent may agree to early termination on the condition that replacement tenants are found. In this circumstance, the landlord or agent can claim from the deposit the costs associated with re- advertising the property or referencing new tenants, provided evidence is provided to confirm that the claim and its amount is reasonable.
If a suitable replacement tenant is found, the landlord or agent will only be permitted to charge rent until the new tenancy has started. Landlords are only entitled to recover rental payments that the outgoing tenant should have paid to the extent that the replacement tenant will be paying a lower amount.