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How Flat Leases Work

How Flat Leases Work

If you aren’t lucky enough to be a flat owner then you are one of the millions people who are interested in the price on the flats leases. If you live on rent, then you are facing the nerve-wracking challenge of moving all your stuff from one place to another. However, movings are necessary usually because you need to move to a better location or just to a cheaper one. In a big city such as London, flats are arranged in complexes or buildings and then individually leased out. In the UK flats, rent is paid on weekly basis.

  • Security deposit. Once the offer has been made and the agreement with your landlord checked, it’s time to pay your security deposit. The amount of the security deposit varies and it depends on your landlord wishes, but it usually equals to 3-6 weeks rent. Deposit is then paid to the estate agent who transfers it to the landlord. The landlord is required by the law to transfer the deposit in a special tenancy deposit scheme within 30 days. When the tenants are moving out they are required to return the property in the same condition as they received it, so it’s is recommended to use the help of professional end of tenancy cleaners.

  • Administration fees. Also known as admin fees are charged to cover the estate agent who administrates the leases and inventory check.

  • Listing fees. Listing fees are also paid to the agent for showing the property and the listing. This fee is paid to the landlord and it’s usually one month rent.

  • First month’s rent. A common practice among the estate agents is to require the first month to be paid upfront. In that case, you pre-pay for each month you will live in that flat. If you do the math, you will see that the fees are quite high and you will have to live in the flat, at least, six months in order to get your investment back and afford carpet cleaning services, for instance.

Now you know how the flat leases in London works.

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