Renting Explained
How it all works
1. Rental Contracts
England
A tenancy is the contract between you and the Landlord. There are two types of options available through My Future Living in England.
Assured ‘lifetime’ Tenancies (AT)
These are our usual tenancy type. Key features are:
- This is a long-term tenancy which offers increased protection from eviction, provided tenants keep to the terms of the tenancy agreement.
- After an initial fixed term, the tenancy automatically continues on a ‘periodic assured tenancy’ basis whereby the tenant stays for as long as they wish and yet may give the required notice to leave at any time.
- The landlord can only regain possession by obtaining an order from the court if there has been a breach of contract by the tenant.
Assured Shorthold Tenancies (AST)
These are the more common tenancies on the open market and many of our properties can be rented in this way, if preferred. Key features are:
- This is a fixed term tenancy, where our landlords usually offer tenancies of between two and five years.
- Once this fixed term is up, either a new tenancy will be negotiated and offered to the tenant or the landlord may wish to regain possession.
Wales
From 1 December 2022, everyone who rents a home in Wales will have an ‘occupation contract’. An occupation contract is the agreement between tenant or licensee called the ‘contract-holder’ – and their landlord.
A contract-holder who does not breach the terms of their contract is entitled to occupy for a minimum of one year from the occupation date of a new contract.
My Future Living offer two types of contracts in Wales.
Periodic Standard Occupational Contract (POC)
This is a long term contract where after an initial fixed term the tenancy automatically continues on a periodic rolling basis. A contract holder can end a periodic contract by giving 4 weeks notice. We have removed the Section 173 notice from our POC contracts in order to give customers even more security. This means we cannot serve the notice to evict.
Standard Occupational Contract (SOC)
A fixed term standard occupation contract requires both the contract-holder and the landlord to commit to a minimum term. After the end of this initial fixed term, the contract-holder and the landlord may agree a new fixed term and the contract-holder will be given a further standard fixed term contract or a periodic standard occupational contract.
The fixed contract can be brought to an end:
- by mutual agreement by both parties
- by the landlord serving a section 173 which requires the Landlord to give 6 months notice.
Scotland
Private Residential Tenancy (PRT)
Since 2017, all new tenancies in Scotland must be a private residential tenancy.
Key features are:
- This is a no fixed term tenancy.
- The tenancy is brought to an end by the tenant giving notice or, the landlord obtaining an eviction order from the First-Tier Tribunal using one or more of the grounds set out in Schedule 3 of the Private Housing (Tenancies) (Scotland) Act 2016.
It’s important to note that all our tenancies are subject to an annual rent increase that is linked to the Retail Price Index.
2. Managing your finances
One of the many benefits of renting is that it can be easier to budget your money every month. When you rent the landlord covers the ongoing costs of maintenance, building service charges and buildings insurance, so there are no surprises. For older people with limited incomes this can be really reassuring.
To help you plan your finances below are the bills you will be responsible for:
- Monthly rent
- Council tax
- Utility bills – electricity, gas, water (please note in many cases water rates are included in the rent)
- Other personal bills – telephone, internet, home contents insurance, TV license and any TV subscriptions
These are the costs you will pay prior to moving into your rental home:
- Holding deposit – equal to one week’s rent. This reserves the property and is paid towards the first month’s rent. Holding deposits do not apply in Scotland.
- Security deposit – equal to one month’s rent. This covers damages and defaults on the part of the tenant during the tenancy. The deposit is reimbursed at the end of the tenancy, subject to the details of your agreement and the findings of the inventory check-out report.
- Advance rent 4-6 weeks rent depending on your start date.
3. Security deposit
Everyone that rents a property will be asked to pay a security deposit prior to moving in, which is normally one month’s rent. This is held for the duration of the tenancy and the landlord can claim against any damages or unpaid rent at the end of the tenancy.
We are members of the Tenancy Deposit Scheme (TDS) which means we hold deposits in a secure managed account. Any properties rented on assured shorthold tenancy in England and all properties in Wales will be registered with the scheme as required by law.
In Scotland all our deposits are held by My Deposits Scotland Scheme.
The release of funds at the end of the tenancy requires both parties to agree on any deductions, often following an inspection to ensure the property is left in good order. If there is a requirement for repairs and/or cleaning the landlord can request the amount be withheld from the deposit.
My Future Living holds deposits as a stakeholder which means in any dispute funds cannot be released unless agreed by both parties (tenant and landlord). Disputes will be passed to the independent case examiner at the TDS to arbitrate and resolve.
4. Our fees
We keep our fees simple and transparent, with no hidden fees. This enables our future tenants to understand all the charges they will be liable for, which helps them make the decision of renting is for them or not.