Tenant’s Guide to Residential Lettings

Here at Stella Lange LLP, we wish your rental experience to go as smoothly as possible from start to finish, so we have compiled the following guide to help steer you through the rental process.  Should you have any further questions please do not hesitate to telephone our office on +44 (0)20 7794 4821 or email us at info@stellalange.co.uk.

 

Before you start looking

Set yourself a lettings brief, including:

  • Monthly budget to include rent, gas, electric, water, broadband and council tax
  • Commute distances to available transport and to work
  • What amenities would you like close by (schools, shops, parks, restaurants)
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Finding a Property

When searching for a home, consider:

  • What bills are payable in addition to the rent?
  • Which government approved tenancy deposit scheme will your deposit be secured with, with an Assured Period Tenancy?
  • What is the local area like?
  • Who manages the property and who to call in case of emergencies?

Your Referencing & Affordability Checks

Once a rent has been agreed, the Landlord will want to ensure you or a guarantor can pay the rent. Each tenant will undergo a reference and credit check using a specialist tenant referencing service and we will supply the application form for you to complete, please have suitable referees ready to confirm your ability to meet the commitment.

Individuals

  • Proof of income or employment
  • Previous Landlord (if applicable)
  • Bank 
  • Accountant (if applicable)
  • Character (if applicable)

Companies

  • Accountant
  • Bank (If applicable)
  • Accounts

In the event of an individual/company acting as Guarantor for the Tenant, the above reference rules also apply.

 

Right To Rent

By law, landlords must ensure that any tenant has the ‘Right to Reside’ in the UK.  You will be asked for the appropriate forms of identification. 

 

Deposits

Holding Deposit - Assured Periodic Tenancy

Once an offer has been agreed, it is normal practice for a holding deposit of one week's rent to be paid in respect of the proposed tenancy. 

This deposit does not constitute a formal tenancy for the property nor does it secure the accommodation.

Once we have your holding deposit, current legislation stipulates that the necessary paperwork should be completed within 15 days or such longer period as might be agreed. 

If at any time during that extended period you decide not to proceed with the tenancy, then your holding deposit will be retained by our company. By the same token, if during that period you unreasonably delay in responding to any reasonable request made by our company, and if it turns out that you have provided us with false or misleading information as part of your tenancy application or if you fail any of the checks which the Landlord is required to undertake under the Immigration Act 2014, then again your holding deposit will not be returned. It will be retained by our company.

Should the Landlord decide not to proceed with the tenancy, then the holding deposit will be refunded in full.

Holding Deposit - Non-Housing Act Tenancy & Company Tenancy

Once an offer has been agreed, it is normal practice for a holding deposit of one weeks rent to be paid in respect of the proposed tenancy. This deposit does not constitute a formal tenancy for the property nor does it secure the accommodation.

Should you withdraw from the transaction prior to the completion of a formal tenancy, the holding deposit may be retained in respect of administration charges or loss of rental income.

If at any time during that extended period you decide not to proceed with the tenancy, then your holding deposit will be retained by our company. By the same token, if during that period you unreasonably delay in responding to any reasonable request made by our company, and if it turns out that you have provided us with false or misleading information as part of your tenancy application or if you fail any of the checks which the Landlord is required to undertake under the Immigration Act 2014, then again your holding deposit will not be returned. It will be retained by our company.

Should the Landlord decide not to proceed with the tenancy, then the holding deposit will be refunded in full.

Security Deposit - Assured Periodic Tenancy (APT)

A security deposit usually equivalent to five weeks rent for properties where the annual rent is up to £50,000 per annum, and six weeks rent for where the annual rent exceeds this, will be held for the duration of the tenancy by either the Landlord or Agent against damages, dilapidations, missing items etc. 

With an Assured Periodic Tenancy (APT), then your deposit will be subject to the Tenancy Deposit Protection Scheme (TDPS). This is a government approved scheme that requires by law that the tenant’s deposit is protected by either an insurance based scheme or a custodial scheme. The landlord or letting agent can hold the deposit and register it with an insured scheme or pass it on to a custodial scheme to hold. If Stella Lange LLP is asked to hold the deposit, it will be registered with an insurance based scheme of the Tenancy Deposit Scheme (TDS). The deposit will be covered by the Client Money Protection Scheme – NFoPP reference number C0008227, which is an insurance scheme that covers any money handled by the letting agent.

 

Security Deposit - Non-Housing Act Tenancy or Company Tenancy

For tenancies that fall outside of the Housing Act a tenancy deposit can be agreed at an amount equivalent to six weeks rent. If the Tenant has a pet and the Landlord agrees and gives their consent for a pet to stay in the property then typically an additional two weeks rent is requested from the Tenant so the tenancy deposit is then equal to eight weeks rent.

Tenancy Agreement

Assured Periodic Tenancy (APT) for a Private Tenant – Housing Act Tenancy

This type of tenancy is taken in the Tenant’s own name or names, and if the annual rent does not exceed £100,000 per annum. This has replaced the Assured Shorthold Tenancy (AST) from 01/05/2026 under the Renters Rights Act 2025. The property must be the Tenant’s only or principal home. This means that they continue indefinitely until ended by a notice from the Tenant. Or a notice from the Landlord for specific reasons. 

Non-Housing Act Tenancy or Company Tenancy

If the rent exceeds £100,000 per annum the tenancy agreement cannot be an Assured Periodic Tenancy (APT) as it will fall outside the Housing Act. This is known as a Common Law Tenancy. Where the rent is either above or below £100,000 per annum and the Landlord is a Resident Landlord, the Tenant has another main or principal home, or the letting is to a company as a Company Let, these tenancies also fall outside the Housing Act. If your employer is undertaking the tenancy on your behalf, an agreement is drawn up that identifies the company as the Tenant and you as the occupant. The agreement must be signed by an authorised signatory of the company, which cannot be the occupant.

 

Tenant Expenses for a Tenancy

Assured Periodic Tenancy (APT)

The Tenant Fees Act 2019 came into force on 01/06/2019, applied to an Assured Shorthold Tenancy (AST) and from 01/05/2026 it applies to an Assured Periodic Tenancy (Renters Rights Act 2025). 

The following payments are chargeable in connection with a tenancy:

  • the rent if the tenancy agreement has been signed
  • a tenancy deposit
  • a holding deposit to reserve a property
  • a payment to change the tenancy when requested by the tenant
  • a payment when the correct amount of notice is not given
  • including utilities, communication services and council tax as part of the rent when not paid separately
  • a fee for late payment of rent
  • a fee for replacing a key or security device

Non-Housing Act Tenancy or Company Tenancy

The following payments are chargeable in connection with a tenancy:

  • the tenancy agreement 
  • the rent
  • the inventory check in
  • a tenancy deposit
  • a holding deposit to reserve a property
  • a payment to change the tenancy when requested by the tenant
  • a payment when the correct amount of notice is not given
  • including utilities, communication services and council tax as part of the rent when not paid separately
  • a fee for late payment of rent
  • a fee for replacing a key or security device

Payments may include, but are not limited to, those listed above.

 

Rent

Assured Periodic Tenancy (APT)

This is the amount when agreeing to let the property. On or after 1 May 2026, the rent must not be more than the advertised amount, and must be explained clearly what is included. Rent should be paid at regular intervals and should be equally split across the tenancy. On or after 1 May 2026, your Landlord cannot ask for rent to be paid before the tenancy agreement is signed. A maximum of 1 month’s rent in advance is paid after you have signed the tenancy agreement. Rental payments are due calendar monthly in advance in accordance with your tenancy agreement. These payments should be made by bank standing order and cleared funds to be received by the rent due date

Non-Housing Act Tenancy or Company Tenancy

The first payment of rent in advance, equivalent to a calendar month or as per negotiated, ie quarterly or 6 monthly.

 

Stamp Duty and Land Tax

Stamp Duty Land Tax means the tax payable (if applicable) to the Stamp Office on the signing of this Agreement by the Tenant, if the Rent after discount exceeds the threshold.  Further information can be obtained from the Inland Revenue website on https://www.gov.uk/topic/business-tax/stamp-taxes 

 

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Utilities

At the commencement of the tenancy, you will be required to transfer the electricity, gas, water, broadband and telephone into your name.  You may need to pay a deposit to the utility companies concerned, unless you have been an account holder before. Please note where utilities are included in the rent, you will be advised of this.

Council Tax

You will be obliged to pay the Council Tax, which is levied on the property by the local authority and in this regard, you must notify the local authority to forward all demands directly to you.

Inventory

The Landlord is responsible for providing an inventory and schedule of condition at the commencement of your tenancy. This is usually prepared by an independent inventory clerk. You will be given a maximum of 7 days from receipt of the document in which to check the inventory and to bring to our attention any discrepancies which you may find. 

Assured Periodic Tenancy (APT)

At the end of the tenancy, the inventory will be checked by the inventory clerk and a report prepared as to the condition of the property.  This is a cost to the Landlord.

Non-Housing Act Tenancy or Company Tenancy

The Landlord will supply you with a professional inventory report at the commencement of the tenancy. The Tenant will pay for the inventory check in at the commencement of the tenancy and the landlord will pay for the inventory check out at the end of the tenancy.

TV Licence

You are responsible for obtaining a TV Licence regardless of whether a television is provided by you or the Landlord.

Insurance

The Landlord is responsible for insuring the building and any furniture, fittings and effects provided by the Landlord. The Landlord is not responsible for insuring your own furniture or possessions and we therefore strongly advise you to insure your own effects.

Pets

You have the right to request to keep a pet. Your landlord cannot unreasonably refuse your request. If they refuse, they must inform you in writing, and should tell you the reason why, for example a lease restriction for a Freehold property. They will need to consider each request on a case-by-case basis. You can challenge the landlord’s decision in court. For tenancies that fall outside of the Housing Act the tenancy deposit can be agreed at a higher amount if required, typically equal to eight weeks rent.

 

Periodic Tenancy, Renewals and Extensions

Assured Periodic Tenancy (APT) for a Private Tenant – Housing Act Tenancies 

We will write to the Landlord and yourself three months prior to the twelve months anniversary of the tenancy to discuss the annual rent review and to serve the Section 13 notice. We will send copies of the relevant documents to the Landlord and Tenant for their records.

Non-Housing Act Tenancy or Company Tenancy

We will write to the Landlord and yourself prior to the expiration of the tenancy to ascertain if both parties wish to renew or extend the tenancy for a further fixed term. We will then re-negotiate the terms of the renewal or extension between the parties and send out the relevant documents for both the Landlord and Tenant to sign, signed copies will be sent to the Landlord and Tenant for their records. 

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Point of Contact

If we are not managing the property, you will be given contact details for your Landlord/Managing Agent.  If we are managing the property, you will be given dedicated contact details to assist you with any issues or queries.

 

Termination of the Tenancy

If you intend to vacate the property, you can leave at any time giving at least 2 months notice on a rent due date. An inventory checkout will be arranged the cost of which is paid for by the Landlord. You will be advised when the inventory clerk will do the checkout report and what is expected of you prior to their visit. The property and garden (if any) should be ready to hand over in the same state and condition at the start of the tenancy. We make this point as costs by way of deduction from the tenancy deposit can be incurred if it is necessary for the Landlord or the Agent to employ the services of professional cleaners and gardeners. All keys must be given to the inventory clerk at the time of the checkout and you will have no further access to the property. You must ensure that all utility accounts, broadband, telephone, council tax and television licence charges are paid up to date (the end of the tenancy date) and the accounts are closed in your name.

It is hoped that all the above information will assist you in moving home, however should you require any further information please do not hesitate to contact us.

 

Link to information on the Renters Rights Act 2025 https://www.gov.uk/government/publications/guide-to-the-renters-rights-act/guide-to-the-renters-rights-act

Regulated Memberships

Stella Lange LLP is an ARLA Propertymark Member.

Client Money Protection (CMP) is provided by: ARLA - Association of Residential Letting Agents.

We are members of Tenancy Deposit Scheme (TDS) and The Property Ombudsman Scheme for Residential Lettings.

Independent Redress is provided by: TPO - The Property Ombudsman.

See link for our Client Money Handling Procedures

See link for our Conduct and Membership Rules