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Insight article

September 22, 2017

Giving rookie renters a helping hand

Following the recent A level results, many first-time students will be looking for last-minute accommodation, if they aren’t heading to their first choice of university with an assured place in the halls of residence.

Parents can help guide the rookie tenants through the process but may themselves not be aware of how things have changed since their uni days or first-time flat rental.

Parents and students often focus on the emotional upheaval or logistics rather than the important details of checking out the property and ensuring the landlord is a safe bet.

Privately-owned student accommodation is likely to be a house of multiple occupation (an HMO) if it accommodates three or more students. AN HMO places extra obligations on the landlord. For example, an HMO must satisfy special requirements regarding fire and general safety, utility supplies and management of communal areas, which could include fire alarms, extinguishers and fire blankets on every floor. You can also ask to see the landlord’s HMO licence. If a landlord doesn’t have a licence when they should, they can be prosecuted, and you may reclaim up to 12 months’ worth of rent paid during the time that the HMO was unlicensed.

Whether the property is classed as an HMO or not, all landlords should ensure that gas appliances are covered by an annual check, that all electrical installations are checked every five years by a qualified electrician and that any appliances like washing machines, kettles or toasters have a PAT certificate.

Any agreement will likely be based on an assured shorthold tenancy (an AST) in privately owned student accommodation. This can be for a fixed term, such as the academic year, for 12 months, or periodic, which may run from month to month. Most lets include the summer holiday period these days, with either full or reduced rent due.

The landlord should provide a written agreement, and as a minimum, this should be a statement of the main terms, including:

  • the date the tenancy will begin
  • the rent due
  • when and how it must be paid
  • if the rent can be changed
  • how long the agreement is for

Under some agreements, the tenants may be jointly and severally liable for the rent. This means that if one of the tenants does not pay their share, the landlord can sue any of the other tenants for the unpaid rent and may pursue the easiest option. E.g., in a house share with a mix of home and overseas students, the landlord may choose to pursue one UK resident for the whole sum rather than any of the overseas students. Also, every student will likely have to be backed up by a guarantor such as a parent.

By law, the landlord must hold any deposit in a registered deposit protection scheme, and you should ask to see evidence of this being done within 30 days. The deposits may be held in the name of one or more designated tenants.

The property should be checked carefully against the inventory. Whether this is a comprehensive record of all contents and the general condition of each aspect of the accommodation or a simple list, it’s worth taking photographs of the condition of everything, including any damage or poor condition that you pick up as you go around the property, to ensure that you have a strong case for the full return of your deposit at the end of the tenancy.

Recently, a group of student tenants in Bristol took a letting agent to court and overturned a deduction of £780 worth of charges which was being taken from their deposit to cover redecoration and cleaning. The students had photographic proof of the state of the accommodation when they took it on and could show it was cleaner when they left, as well as having evidence to demonstrate that works claimed for by the letting agent had not subsequently been done. Their attention to detail helped them secure a County Court judgement and the return of the deposit.

Property partner, John Gillette, explained:

“Thanks to the huge rise in demand for university places over recent years, many different types of investors and private landlords have entered the student accommodation sector. There’s been a big shift away from the scruffy digs that people used to experience at university, but there are still many older properties that may be more likely to pose problems in terms of repairs and general condition, and no sector is immune from difficult landlords.

The important thing is to make sure young people have some guidance, and if necessary get the contract and terms checked out professionally. It’s likely to be the parent who is on the line as guarantor, so it’s worth taking time to be sure, and not just jumping to secure a last-minute property.”

John’s top tips include:

  • If you’re using a letting agent, be sure of their procedures and where a holding or advance rental deposit is required. Find out if it will be refunded if the application fails to complete, for example, if you don’t pass a credit check.
  • Ask for the relevant licences, such as for a House in Multiple Occupation and any gas or electrical installations and appliances.
  • If the letting agent or landlord says that any work will be undertaken as a condition of you taking on the tenancy, get it in writing before signing any agreement.
  • Read the small print on the tenancy agreement, and if anything doesn’t sound right, get it checked out, as once you’ve signed, you’re committed.
  • Check the inventory – dispute anything inaccurate and take photographs when you move in.
  • Make sure the deposit is being held in a Government-backed scheme.

Speak to John Gillette today.

Note: This is not legal advice; it provides information of general interest about current legal issues.

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