Contract Holder Guide to Renting
After viewing a property, on registering your interest, we will supply you with a pre reference application form which all occupiers over the age of 18 will need to complete.
Contract Holder Information
Important information for Contract Holders looking to rent a property with Watts & Morgan
Referencing Process & Right to Rent Checks
You will be required to supply information regarding employment status, income, credit information, most current landlord details, proof of address, a copy of your valid photo I.D and pet status if applicable. If self-employed, accounts and income details will be required for the past three years.
On supplying this information, you will be authorising Watts & Morgan to pass your details onto a third-party reference company. There are no fees connected to the contract holder for the referencing process.
Guarantor Requirements
If a guarantor is required, which may not become apparent until your referencing has been completed, your chosen guarantor will need to complete an application form. In addition, they will need to provide valid photographic identification and proof of residence, along with standard referencing which covers employment status and salary checks, right to rent checks, and credit history. There is no charge relating to this.
Holding Deposits
A holding deposit is taken in order to secure the property during the reference process. It also serves as a guarantee to the contract holder that the landlord will hold for them pending a successful reference. This is payable in advance by bank transfer.
A Holding Deposit is equivalent to 1 weeks rent. Calculation – Monthly rent divided by 4.35.
This can be retained if the contract holder provides false or misleading information to the letting agent/landlord. The letting agent/landlord is reasonably entitled to consider in deciding whether to grant the tenancy as a result:
• If the contract holder decides to withdraw before the Deadline for Agreement.
• If the contract holder fails to take all reasonable steps to enter into a occupation contract by a given date.
However, once a successful reference has been obtained, the holding deposit will be put towards the first month’s rent.
Reference Acceptance
On receipt of a successful reference, a suitable move in date is agreed and the occupation contract is prepared along with a full inventory recording the condition of the property.
When an occupation contract has been granted, the necessary monies, as listed below, must be paid by cleared funds, by the agreed moving in date. The first Month’s Rent is payable in advance by bank transfer.
The Deposit is equivalent to five weeks rent and is payable in advance via bank transfer. The company bank details will be passed to contract holder prior to move in. The deposit will be returned at the end of occupation contract, providing there is no breach of occupation, no outstanding rent or bills, and the property is clean and tidy with no damage above wear and tear.
If the property is managed by Watts & Morgan the deposit is protected under a government authorised scheme, TDS.
Please note: Ingoing costs to be received by cleared funds on move in day. We are unable to take any card payments. We are unable to release the keys until funds are cleared.
The Occupation Contract
This is a contractual Agreement between yourself and the Landlord. It is a legally binding document on both parties and clearly sets out the terms and conditions and the obligations of both parties during the period of the occupation. Most occupation contracts will run for a minimum period of six months and thereafter on a month to month basis or such other period as may be agreed between the parties.
Before you can take occupation of the property, the occupation contract must be signed and we must hold cleared funds representing the deposit and the first month's rent.
Download occupation contract here
Deposit
Before the occupation contract commences, we will require a deposit representing 5 weeks rent of the property. The deposit is held by ourselves as stakeholder on behalf of the Landlord and with no interest payable to either party. The purpose of the deposit is to cover any loss or damage that may arise to the Landlord's property, during the tenancy.
It is a statutory requirement that all deposits are now protected. Watts & Morgan operate an insurance based scheme as members of RICS and ARLA through The Dispute Service (TDS) the legislation sets out clear time scales and the manner in which deposits and any disputes are to be dealt with at the end of a occupation contract. For further information please visit the website https://www.tenancydepositscheme.com/
Rent
The first month's rent is payable in advance with all future payments payable by standing order. In certain circumstances, alternative methods of payment may be allowed, although this should be agreed in advance either with ourselves or, with the Landlord.
Schedule of Condition and Inventory
Prior to your occupation of the property, a Schedule of Condition and Inventory of any contents at the property will have been prepared. Copies will have been provided to you at the commencement of the occupation and it is imperative that you check its accuracy, sign and return to us within 5 working days. Any discrepancies must be reported within 5 working days since this will form the basis of resolving any dispute relating to damage to the property or contents at the end of the occupation.
Utilities
Contract holders are usually liable for all service and utility charges including Council Tax relating to the property. Watts & Morgan undertake to notify the providing companies and Local Authority and provide them with commencing meter readings and start dates. Similarly end meter readings and termination dates are provided to the relevant statutory and Local Authorities.
Insurance
It is the contract holders responsibility for ensuring their own personal effects and with a policy adequate to cover any damage that may be occasioned to the Landlord's buildings or contents.
Contract Holder Protection
Watts & Morgan is a member of RICS, which is a client money protection scheme, The Property Ombudsman, which is a redress scheme and licensed under Rent Smart Wales number #LR-86002-26633.
Management Visits
Where properties are managed by Watts & Morgan, they will be the subject to periodic inspections in order to confirm that you are complying with your obligations under the terms of the occupation contract. Such visits are normally undertaken quarterly and by prior appointment with the contract holder. We do nevertheless reserve the right to enter properties, with 24 hours notice served, to undertake these inspections where all reasonable efforts to confirm an appointment have failed.
Contract Holder Obligations
If Watts & Morgan manage your contract, in line with your obligations, you are required to notify us of any maintenance issues in a timely manner to enable a prompt response. We will also require access by prior arrangement to fulfil annual safety certificate requirements. In case of an out of hours emergency, a list of our approved contractors is available here.
Register as a contract holder