Letting fees to be banned from June - MSE News

Comms69

michalis1986 wrote: »

Hi all,

I would like to hear your feedback/input on our case below

Our tenancy is up for renewal on the 29th June and was today asked if we would like to stay or vacate the property. They should have contacted us at least a month in advance am i right? - nope, no such rule

Nevertheless, in the letter we received they give the two following options

The Tenancy for the above mentioned property expires on the 29 June 2019. Further to our telephone conversation, I would like to determine whether or not you wish to renew the existing tenancy.

"Your options are:-
a) I/We* wish to extend the Tenancy for a further period of 6 / 12* months and confirm payment of £120.00 (£100.00 plus VAT) to cover the administration charge, alternatively you are welcome to contact the office to make payment using a debit card
b) I/We* wish to vacate the property at the end of the current Tenancy."
C) I / We wish to remain in the property on a periodic basis; as this happens automatically by law, we will do just that.

We would like to extend the tenancy but are we in the right to object paying the £120 admin charge or is it something not covered by the regulation that came to force on 1st June?

Many thanks
Michalis

For existing tenancies the law starts in 2020, so it is legitimate; but you can just go periodic if you choose

michalis1986

Comms69 wrote: »

For existing tenancies the law starts in 2020, so it is legitimate; but you can just go periodic if you choose

Thanks for your prompt response.

Will get back and ask for the periodic option and see where that takes us.

Many thanks
Michalis

Comms69

michalis1986 wrote: »

Thanks for your prompt response.

Will get back and ask for the periodic option and see where that takes us.

Many thanks
Michalis

No need to ask, it happens automatically. You can just ignore the letter

System

Fantasticaly wrote: »

Thank you again for the replies, most of my friends have mortgages so don't understand the complexities of renting, so it's nice to have somewhere to ask advice.

When I say the cellar floods, I'm talking inaccessible - the water comes up to my knees and fills wellies, so it's not just a little water we're talking about. Having to navigate that once a week to top up the gas meter is beyond even my patience - it has fungi floating on top of the water!

Glad to hear about the deposit, that is some good news and that money will prove invaluable when/if we come to move.

I do have deed polls etc, so can prove I am who I say I am, so that's also reassuring.

The problem with coordinating the water being drained with the gas engineer is that sometimes I don't even get a reply from the LA/LL, so it would be a logistical nightmare trying to get both done on the same day, and it fills up again within hours.

I will try the LA again and see what he says (or not)

Thanks again

sorry but that isn't acceptable and I would question whether that meets the Fitness for Human Habitation Act 2018. You really should bring it up with the LA again and if they don't reply report to the relevant council department

Crashy_Time

Will EA`s have to actually sell houses now, by managing down price expectations?

[Deleted User]

Since the 1st of June fee ban, I've noticed lettings agents are now asking for 1 weeks rent as a holding deposit which will then go towards the first month rent once you pass "right to rent checks" and sign the tenancy.

Do these right to rent checks include passing income and credit checks or just if you have a right to live in the UK?

Otherwise it just looks like the old "admin fee" con from before the ban.

Crashy_Time

Deleted_User wrote: »

Since the 1st of June fee ban, I've noticed lettings agents are now asking for 1 weeks rent as a holding deposit which will then go towards the first month rent once you pass "right to rent checks" and sign the tenancy.

Do these right to rent checks include passing income and credit checks or just if you have a right to live in the UK?

Otherwise it just looks like the old "admin fee" con from before the ban.

Just desperation for income IMO, the lack of "legit" fees will be hurting. Time to start selling houses again, but price drops will probably be required to get any decent volume going at this point.

tom9980

Deleted_User wrote: »

Since the 1st of June fee ban, I've noticed lettings agents are now asking for 1 weeks rent as a holding deposit which will then go towards the first month rent once you pass "right to rent checks" and sign the tenancy.

Do these right to rent checks include passing income and credit checks or just if you have a right to live in the UK?

Otherwise it just looks like the old "admin fee" con from before the ban.

It's the maximum holding deposit allowed (1 week rent) most landlords ask for a holding deposit, there is no admin fee here because it forms part of the first months rent or the deposit which then gets put in one of the deposit protection schemes.

Being a serial renter I would have expected crashy time would know this is common.

[Deleted User]

tom9980 wrote: »

It's the maximum holding deposit allowed (1 week rent) most landlords ask for a holding deposit, there is no admin fee here because it forms part of the first months rent or the deposit which then gets put in one of the deposit protection schemes.

Being a serial renter I would have expected crashy time would know this is common.

The 1 week rent worth of deposit they (the letting agents) are asking for now, will they return it if you fail the credit/income check?

If not then it's just a scam like the old days where some dodgy agents will sit and fill application form in, ask for £150, then turn round and say sorry you can't rent property because you have a satisfied CCJ or your income falls short. Yet they knew they while filling the form in.

tom9980

Deleted_User wrote: »

The 1 week rent worth of deposit they (the letting agents) are asking for now, will they return it if you fail the credit/income check?

If not then it's just a scam like the old days where some dodgy agents will sit and fill application form in, ask for £150, then turn round and say sorry you can't rent property because you have a satisfied CCJ or your income falls short. Yet they knew they while filling the form in.

Ask for the terms of the holding deposit.

In my experience a holding deposit is returned except in cases where the tenant pulls out. It is a bit more murky where a tenant has lied during the application process but we don't regularly see tenants complaining on these forums about holding deposits being withheld.