Information for a Prospective Tenant
Introduction
This information sheet will provide you with all you need to know on the process of applying for a property with Purplebricks, all the way through to collecting the keys to your new home.
Reserving a Property
Reserving a Property (England, Wales and Northern Ireland)
Should you make an offer on a property and it be accepted by the Landlord, you will be asked to pay a holding deposit equivalent to one weeks agreed rent. This will remove the property from the market whilst reference checks and preparation of the tenancy agreement is undertaken. The holding deposit is taken as a financial commitment from you, the prospective tenant to proceed towards entering into the agreement.
Refunding a Holding Deposit
Should you proceed to enter into a tenancy agreement with the Landlord, the holding deposit will be paid towards the balances of your first month’s rent.
Should the Landlord choose to withdraw from entering into the agreement, this money will be refunded to you.
The holding deposit paid will remain on account for the duration of your application.
Retaining a Holding Deposit
A Holding Deposit will be retained where a prospective tenant;
Provides false or misleading information which is reasonable considered when deciding a let of a property
Fails a right to rent check
Withdraws from entering into an agreement for the property
Fails to take reasonable steps to enter into a tenancy agreement
Should any of the above occur, Purplebricks retains the right to deduct its reasonable expenses on a case by case basis which may include the administration, referencing or any other costs incurred.
Reserving a Property (Scotland)
Once an offer has been accepted you will be asked to provide details for your references. No holding deposit will be payable.
Tenancy Agreements
Please find a draft copy of our Assured Shorthold Tenancy Agreement (England and Wales) here and Private Residential Tenancy Agreement (Scotland) here.
Redress Scheme and Client Money Protection
Purplebricks is a member of Property Mark Client Money Protection Scheme, and also a member of The Property Ombudsman which is a redress scheme.
Start Date of the Tenancy
At the point of making an offer, you will be asked for a preferred date for the commencement of your tenancy. Please note that we require a minimum of 7 days to complete the administration on a new tenancy. This move in date will not be confirmed until referencing has been completed. We would also advise that no removal services are booked until the time to collect your keys has been agreed.
Tenancy Agreement
Following a successful referencing application, you will be emailed the Tenancy Agreement. Please read this carefully as it is a legally binding document. Should you have any queries, please do not hesitate to contact us.
We offer initial tenancies of either six or twelve months. At the conclusion of this term, subject to agreement from the landlord, you may be offered another fixed term contract, or the tenancy will roll on a month by month period basis.
We would ask you sign and initial the agreement where applicable via Adobe Sign within 5 working days of receipt. Once you have moved in, a copy of this agreement will be emailed to you signed by, or on behalf of, the landlord.
By submitting a tenancy application with Purplebricks, you agree to receive a copy of your 'How to Rent Guide' electronically in the form of a PDF. Should you require a hard copy, please inform you dedicated Lettings Coordinator.
Deposit
You will need to pay a deposit for the property up to a maximum value of 5 weeks rent. This will be registered in a recognised tenancy deposit scheme for the duration of your tenancy.
Initial Monies
Prior to you moving in, you will need to pay the outstanding balances on your account as detailed in your Initial Monies Request which you will receive following the return of satisfactory references. This will include your first months' rent, deposit and minus and holding deposit that has been retained already.
The funds must be cleared at least 5 working days prior to the commencement of your tenancy.
Once payment has been made, your will receive a receipted invoice.
Should your landlord have opted for a 'Tenant Find' service, any subsequent payment made to Purplebricks will be returned to you. This will be outlined in your final email from Purplebricks' Lettings Coordinators as well as being detailed in your tenancy agreement.
Furnishings
The inclusion of furnishings and appliances within the let should be discussed prior to the signing of agreements. Levels of furnishing vary greatly and no set precedent exists. If you require clarification on what will be included, please contact us at your earliest opportunity. We will ask the landlord to supply a brief list of furnishings at this stage.
Purplebricks or the Landlord will not be held liable to supply items that are assumed to be included.
Inventory
Prior to, or on the day of you moving in, should your landlord have opted to provide one, you will be supplied with an inventory and schedule of condition for the property. We would ask you to check this carefully, amend if necessary, sign where appropriate and return to us within 5 working days.
Move In
We will arrange for you to meet either our Local Expert, the Landlord or an Inventory Clerk at the property on the day of the commencement of your tenancy. All tenants are required to bring their passport with them to the handover. You will then be provided with all relevant contact information and keys.
Tenants Referencing Guide
Introduction
Who carries out the referencing?
We use an external, third party company called LegalforLandlords to carry out our referencing process. They will require information from yourself and/or your employer and/or your current landlord/Letting agency to obtain the necessary documentation/evidence to support your application. Please let all parties know to expect communication as this will speed up your application.
I have had my offer accepted, how do I submit my application?
After paying the holding deposit (if applicable) through the Purplebricks website, our system will allow you, the prospective tenant, to complete the reference application form.
To re-enter the form, simply select the offer tab within ‘myPurplebricks’, and then respond under the accepted offer.
What is Checked and What Information to Supply
Employment/Income Reference
If you are Employed, in support of your application you can provide:
Contact details of employer (e.g. line manager or HR) to include email Please note, we are unable to accept an employment reference from a mobile phone number.
A copy of your employers contract offer letter
3 month’s pay-slips
Proof of sufficient savings to cover the full rental held in a personal account for a minimum of 30 days. Please note savings need to be instantly accessible and cannot be held in stocks, shares or investments
NB. We are unable to accept a verbal reference from a mobile phone number to verify your employment.
If you are Self-Employed, we will require at least one of the below to evidence your earnings:
Contact details for accountant to include email address
12 months bank statements
HMRC annual tax return
Proof of dividends paid
Proof of sufficient savings to cover the full rental held in a personal account for a minimum of 30 days. Please note savings need to be instantly accessible and cannot be held in stocks, shares or investments.
If you are Retired, we will require:
Confirmation of pension through relevant paperwork from your pension provider and/or DWP.
Proof of sufficient savings to cover the full rental held in a personal account for a minimum of 30 days. Please note savings need to be instantly accessible and cannot be held in stocks, shares or investments.
If you are Unemployed, you will more than likely require a guarantor. However, the following benefits are considered (upon providing evidence of receipt) and may be used to top up other sources of income:
Long term unemployment and support allowance
Working tax credits
Child Tax Credits
Maintenance payments
Disability living allowance
If you are a Student, again you will most likely require a guarantor, however we may also consider:
Proof of sufficient savings held for a one month period or longer
Proof of a bursary paid for living expenses
Affordability Check
The affordability criteria for our properties is as follows:
Tenants:
Total annual income of all tenants (pre-tax) must be equal or greater than 30 times the monthly rent. NB. Commission and bonus payments are not taken into consideration unless they can be proved to be guaranteed.
Guarantors:
Total annual income for guarantors must be equal or greater than 36 times the monthly rent. NB. In the case of two or more guarantors being provided, the percentage of the rent the guarantor is guaranteeing must meet the above criteria.
Landlord Reference
If you are currently residing in rented accommodation you will be required to provide contact details, including email address, of your current and/or previous landlord(s). It may your current Letting agents details that we require – please check who you currently make your rental payments to and provide these details.
Credit Check
A credit history search is conducted through Experian, this looks back over the previous 6 years. This will not hinder your ability to receive credit moving forward and will not show as search on your credit report.
Right to Rent
This check ensures that you have the right to live in the UK.
In order to process your application, please provide a photocopy from the below list of acceptable documentation.
Current or expired British / EEA / Swiss Passport or National Identity Card.
Valid Biometric Immigration document.
Certificate/Card confirming permanent residence issued by the home office.
A passport or other document stating that the holder is exempt from immigration control and is authorised to stay in the UK indefinitely.
If for any reason you are unable to provide one of the above, you must provide 2 of the following documents as evidence.
Full birth certificate/Adoption Certificate.
Letter from an employer/UK government department or local authority (dated within the last 3 months)
Letter confirming acceptance of UK Educational institution.
Full or provisional UK driving licence.
Letter from a UK Police force or HM prison service (must be dated within the last 3 months)
In all instances, we will require a form of identity and proof of current address that is dated within the last 3 months.
Frequently Asked Questions
I am paying the rent in advance, do I need to be referenced?
Yes. The agreement which is being entered into is ongoing, it does not automatically end at the conclusion of the initial term. This would then be re- assessed two months before the conclusion of the agreement to see whether you could now pay monthly, or pay in advance again. Additional references may be required at this stage to allow you to pay monthly – this would be at the landlord’s discretion.
I will be paying all of the rent, does my partner/family need to be referenced?
Any individual over the age of 18 should be referenced, whether they are contributing to the rent or not. They will be added to the agreement under a license to live there but hold no responsibility towards the rent. The landlord still has the right to know information such as previous landlord references for people living under a license.
I do not earn 30 times the monthly rent as an annual income alone, however both myself and my partners income combined will equate to this, will I be accepted?
The affordability calculation is done jointly between all tenants that are living in the property and therefore named on the agreement. So long as the joint annual income is greater than 30 times the monthly rent, the affordability check will be passed.
What is a guarantor?
A guarantor is an additional party to the agreement made between the landlord and tenant. They ‘guarantee’ the financial obligations of the tenant under the agreement wholly and indefinitely. They will be asked to sign a separate agreement with the landlord (Deed of Guarantee) and therefore referencing is again needed to complete due diligence. A guarantor must be UK based and all referencing highlighted above, aside from the landlord reference, will be required for the guarantor and a signed copy of the Deed of Guarantee must be provided before the tenancy agreement can be signed by yourself.
What will happen with my references?
Your full reference reports including all details obtained will be sent to the landlord to allow them to make an informed decision as to whether they wish to enter into the tenancy agreement with you.
Your Consent
Please note the following permissions which we wish you to provide in relation both to the information you enter on this form when you register with us and of your residence at an address let to you under our agency.
By agreeing to the terms outlined, you indicate your consent to your personal information being passed to our Utility Management Partner, Hallmark Corporate Services Limited who will attend to the continuity of your energy and service supply. You also consent to Hallmark Corporate Services Limited offering you the opportunity to sign up to the services of its preferred utility supplier, British Gas.
By agreeing to the terms outlined, you indicate your consent to receiving email marketing, telephone marketing, postal marketing and or text messages from our Utility Management Partner, Hallmark Corporate Services Limited and its selected third party utility providers, such as Home Telecom.
I confirm I have read and understood the above information, including the privacy notice, and consent to comply with the terms outlined.
Signed…………………………………………
Dated………………………………………….
Please tick this box ONLY where you DO NOT wish to receive a Utility Pack from Hallmark Corporate Services Limited in order to be offered the opportunity to sign up to the services of Hallmark Corporate Services Limited’s preferred utility supplier, Octopus Energy
Privacy notice
For the purposes of the Data Protection Act 1998 (the “Act”), the data controller is New Broom Limited T/A Purple Bricks, Avon House,435-441 Stratford Road, Shirley, Solihull B90 4AA.
We use the personal details that you submit to provide you with our services. You may give us personal details about you by filling in this form or by corresponding with us by phone, email or otherwise. In addition to the information you give us on this form, we may also collect additional information (for example, details of your property, current energy providers) as necessary to provide our services and to deal with your queries.
Disclosures of your personal details
We may pass your personal details to our Property Management Partner, Hallmark Corporate Services Limited to enable us to provide you with our services.
In turn, Hallmark may pass your personal details on to selected third party service providers to enable these providers to provide you with energy and other utility services that you request.
We may also share your information with:
credit reference agencies and other companies for use in credit decisions, for fraud prevention and to pursue debtors; and
other third parties (including law enforcement bodies and Government agencies) if we are under a duty to disclose or share your personal details in order to comply with any legal obligation, or to defend or exercise our legal rights.
Marketing information
We would also like to use your personal details:
to tell you about other goods and services that we offer that are similar to those that you have already asked us to provide or have enquired about; and
to provide you, or permit selected third parties to provide you, with information about goods or services we feel may interest you. Those third parties include our Property Management Partner, Hallmark Corporate Services Limited and Hallmark’s preferred energy and other utility supplies. For the purposes of the scheme “utilities” includes gas, Electricity, Water, Council tax and Telecommunications.
Accessing your information
The Act gives you the right to access information held about you. Your right of access can be exercised in accordance with the Act.
Please send any questions, comments, complaints or requests regarding this privacy notice to: lettings@purplebricks.com