With summer comes the peak season of the rental market! More and more university students and fresh graduates started hunting for residences, and it is crucial for them to take heed of the following 6 tips as renting a flat could be very complicated for “rental market rookies”.
Ensure the Seller You Deal With is the Property Owner
There were cases when scammers pretended to be the residence owner and disappeared after receiving the rental deposit from the victim. Thus, it is suggested that rookies should confirm whether or not the person they are dealing with is really the property owner and whether or not that person possesses complete ownership of the property by checking with the Land Registry before signing the tenancy agreement to avoid being scammed.
Require the Property Owner to Present the Written Consent for Property Leasing
In general, if the property is mortgaged to a bank and the owner wishes to rent it out, he must obtain a written consent from the associated bank in advance. Without such document, the bank reserves the right to take possession of the property without the consent of the tenant if the owner fails to repay the mortgage, and the tenant may be forced to move out without receiving any refund for the rent and deposit paid. In this regard, rookies are advised to require the property owner to present the written consent obtained from the mortgaged bank prior to signing the tenancy agreement.
Understanding What are “Fixed-term Tenancy” and “Break Clause”
Currently, the mainstream lease term in the market is around two years, with the first 12 months of the lease term being the “fixed-term contract period” and the period from the 13th month till the termination of the lease being the “flexible-term contract period” if the tenancy agreement contains a break clause. Unless otherwise specified, the owner and the tenant are prohibited from increasing the agreed rent and terminating the tenancy respectively or they will be subject to compensation. In addition, it is not uncommon that the property owner and the tenant forget to stamp the tenancy agreement, leaving the document unprotected by the law in case of any disputes.
Prepare 1 Month’s Rent and Rental Deposit Worth 2 Month’s Rent
When signing the tenancy agreement, the tenant will usually pay the property owner the rent for the first month of tenancy and a deposit equivalent to two months of the rent (the payment amount and date are subject to the negotiation between the property owner and the tenant) and the property owner will pass the key for the property to the tenant at the same day. However, it is crucial to note that the deposit is not equivalent to the rent and will be refunded to the tenant after the owner has taken possession of the property upon the termination of the tenancy agreement and confirmed that the flat is free from any damages.
Pay Attention to All the Possible Bills
It is worth noting that sometimes the rates and management fee required for the rented property are not included in the rent. Thus, to avoid any disputes, do clarify with the property owner if the rent is inclusive of all the possible charges and request from him previous water, electricity and gas bills to check the consumption and ensure the flat is free from any arrears.
Inspect Thoroughly All Furniture and Electrical Appliances
If the rented property is furnished, tenants are suggested to check all the furniture and electrical appliances on the inventory list one by one and state clearly in the tenancy agreement the condition of all the furniture, the party who is responsible for the maintenance and whether or not the furniture is rented out together with the flat.
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