Deposit – to be capped at 5 weeks rent if annual rent under £50,000 per year.
Tenancy Renewal – if tenancy renewed after 01/06/2019, any deposit currently held, which equates to more than 5 weeks rent, will have to be refunded.
REPLACEMENT KEYS, reasonable costs with receipts to support the cost, it does not allow for hourly charge for organising etc.
RENT ARREARS – 3% above bank rate (currently 0.75%), the charge is added after 14 days late on payment, and can be back dated to day 1, can only be charged if over 14 days late for payment. Cannot charge for sending out rent chase letters. If the tenant has a direct debit, the additional charges can be collected by direct debit.
HOLDING DEPOSITS – up to 1 weeks rent can be taken to hold a property, it can only be held for a maximum of 15 days.
The following conditions would apply:-
- Landlord/Letting Agent pull out – then a full refund is to be made to the tenant
- Landlord/Letting Agent dragging their feet – then a full refund is to be made to the tenant
- Tenant pulls out – then no refund to the tenant
- Tenant is dragging their feet – then no refund to the tenant
STUDENT LETS – if tenancy agreement is sorted out and signed up before 01/06/2019 – however the tenancy does not start until after 01/06/2019 – then current fees can be charged now.
FEES – current fees can be charged for all tenancies signed for up to 01/06/2019, even if the move in date is after 01/06/2019, as long as all documents are signed prior to this date, then the fees can be charged. Existing tenancies, fee’s currently stated within the tenancy agreement can be charged up to 31/05/2020, however all these fee’s will cease from 31/05/2020 no matter what date the current tenancy start, including periodic and fixed terms.
Renewals – any tenancy renewed after 01/06/2019 will have the new tenancy fee ban in place.
RIGHT TO RENT CHECKS
No fees can be charged for carrying out these checks.
If the tenant fails – you can withhold refunding any holding deposit taken.
EU Citizens post Brexit – not sure if things will change – further guidance is awaited.
If it is written into the tenancy that the tenant must have an insurance product (eg, Tenant Liability/Contents) then you cannot charge for it. If it is a suggestion/recommendation that the tenant has it then you can have commission from the product.
ENDING TENANCY EARLY BY TENANT
Yes – if the tenant ends the tenancy early of the fixed term, you will be able to charge a fee – still waiting for confirmation on maximum fee allowed.
No fee allowed.
PROFESSIONAL CLEANING OF A PROPERTY AT THE END OF TENANCY
Cannot charge for this, and the clause within the tenancy agreement needs to be changed – suggested wording “ The property must be returned to the same condition the property was in at the start of the tenancy, after a professional clean had taken place”.
No fees can be charged for carrying out an inventory.
The tenant has the right to sign a copy of the final check/inventory report.
You cannot charge an extra deposit for pets to take the deposit to over the 5 week limit.
However, you can charge extra rent for an allowance of a pet (eg, £10.00 per week), however due to the conditions of consumer protection, if a pet is allowed at the property, you must advertise the property advising what the rent would be (eg, property is £100 per week, or with the allowance of a pet £110.00 per week).
NIL DEPOSIT/DEPOSIT REPLACEMENT SCHEMES
You can offer the tenant to pay the deposit as normal, or offer a Nil deposit Scheme – but you need to give the tenant the option. If the Nil Deposit Scheme has a condition tied into it that the tenant must have Tenant Liability Insurance/contents insurance you can enforce this, but only if you give the tenant the choice/option of paying the deposit or the scheme. If you are saying the only option for your tenant is to join the Nil Deposit Scheme then you can not make them take out the insurance products.
PENALTY IF ANY OF THE ABOVE CONDITIONS ARE BROKEN OR NOT ADHERED TO IS UP TO £5000 FINE PER FEE CHARGED (NOT PER LETTING AGENT OR LANDLORD).