Here are NUS’ top tips to think about when signing a contract:
1. Don’t panic
Often you will be told that there are no more houses, or that there's a queue of people waiting to sign the house you are looking at, to encourage you to sign for a house quickly.
This is why it’s important you find out about your housing market, as in many places there is actually an over supply of rented accommodation. Even if you are studying in one of the areas where supply exceeds demand, it is still not worth being pressured into something. Take time to read over the contract, check what it means and get a third party – your students’ union, Shelter or Citizens Advice Bureaux – to look over the contract for you to make sure it’s reasonable. You might also want to check out the Office of Fair Trading’s guidance on Unfair Terms (www.oft.gov.uk).
Only once you have had some time – at least 24 hours - and thought through all the information on these pages, should you consider signing the contract.
2. Think about who’s responsible for what
In some cases, you and your housemates will all sign an individual contract. However in lots of cases all tenants will sign the same contract. This can mean that you are all ‘jointly and severally’ liable for things like paying the rent. This means that if one tenant leaves, doesn’t pay their rent or damages the property, you may be left having to pay. This is why it’s so important that you think long and hard about whom to live with, and make sure it’s someone you trust.
Lots of landlords and letting agents will also require a ‘guarantor’ – this may be a parent or other individual who will be liable to pay rent or other money should you not be able to. If you are on a joint contract, check the wording of this to ensure that your guarantor is not joint and severally liable for your other housemates.
3. Check for extra costs
Are there other fees to pay in addition to the rent? For example, does the landlord or letting agent charge a referencing, booking or admin fee? These are non-returnable fees in addition to the deposits which some people will charge. These can range from £50 to over £150. Make sure you include such charges in your estimates of how much this property will cost you.
4. Check the contract has everything it needs
Some things that you should see on a contract:
- Name and address of landlord
- Names and contact addresses of the tenants
- Address of the property – make sure this matches the address of the house you looked at.
- When the contract starts, and when it will end (if a fixed term contract)
- Reasons why the contract may end
- The amount of rent payable, when payable, how it is to be paid,
- What the rent includes, and what it doesn’t
- The amount of deposit, where the deposit will be protected (if applicable)
- Tenant obligations (legal requirements and specific requirements to that contract) – remember to get someone to check this to ensure they are not unfair terms
- Landlord obligations
- Any work that will be completed prior to tenant moving in
Most students will be on an assured shorthold tenancy. If you are on such a contract, you have particular rights and responsibilities, including that of Tenancy Deposit Protection.
5. Check the inventory
With your contract you should also have an inventory. This is a list of everything that comes with the property, and their condition.
Read this carefully and ensure that everything is listed, and you agree with the description of it. Does everything on it match up with what you saw and felt in the property? If not, speak to the landlord and get this altered to descriptions and details you both agree with.
At the end of a tenancy, this is a hugely important document in terms of getting your deposit back.
6. Ask for other necessary documentation
HMO License
Lots of students will live in properties that are legally required to be licensed. These are properties with 5 or more people who are not all a part of the same immediate family living on three or more floors.
In some areas, other rented properties also need a license. This is why it’s important that before you start house hunting you familiarise yourself with the rental market.
If your property does require a license, ask your landlord for a copy.
EPCs
As part of the EU Directive 2002/91/EC tenants renting a property should receive an Energy Performance Certificate which rates the energy efficiency of your home.
Landlords are legally required to provide you with this information. It can be really useful in terms of working out how much your property will cost in real terms. For example a property rated at F or G will cost a lot more in heating and electricity bills than one rather A B or C, which may determine what property you ultimately choose.
7. Sign it
Once you have checked the contract, looked at the property, seen all the necessary paperwork and had a third party check the contract, you are ready to sign for your new house.
Remember; don’t pay any money to a landlord or agent – like fees, rent or deposits - until after you have signed the contract. No one wants to fall prey to a scam where someone runs off with your money.
8. Keep a copy
Photocopy the contract and keep it for yourself. This will come in handy if you need to check out anything during your tenancy or need to speak to an adviser in your students’ union or other local housing advice service.
You might also want to get a copy to send to a parent or someone else for safe keeping.