The amount of rent you charge is up to you but it should be reasonable, based on the size and condition of the property. Remember that if it is not in line with rents being charged for similar properties in the area you are unlikely to attract a tenant.
Rents and Bonds
What is Local Housing Allowance?
Local Housing Allowance sets the maximum amount of Housing Benefit that can be awarded to a household based on the size of property (i.e. the number of bedrooms) they need. If the amount of rent you charge is higher than the Local Housing Allowance entitlement of the household renting your property, they will be responsible for paying the difference.The factsheet produced by Torfaen Council, 'Local Housing Allowance For Landlords' provides further information and a guide to Local Housing Allowance rent levels for each bedroom size.
Can I keep the bond until the tenant moves out?
Since 6th April 2007 it has been a legal requirement for all deposits (for rent up to £25,000 per annum) taken by landlords or letting agents for assured shorthold tenancies to be protected by a tenancy deposit protection scheme. There are three schemes available, two of which are insurance-based and which allow the landlord to keep the deposit as long as they pay a premium to the scheme, and one custodial scheme which holds the bond on behalf of the landlord (free of charge) until the end of the tenancy.
You must give the tenant details about how their deposit has been protected within 14 days of receiving it. Failing to protect a bond/deposit can result in court action and a requirement to repay the bond and a fine of 3 times the amount of the bond. It may also mean that you will may not be able to gain possession of property at the end of the tenancy.
What if my tenant requires help or advice?
Support can be provided to help people who are having difficulties with tenancy-related issues. Tenants in this situation should contact: Torfaen Council Public Health Team: 01633 648095.