Tenancy fee ban question

beachball_2

Regarding the forthcoming Tenancy Fee Act on Jun 1st, is it:

a) the start date of the tenancy

or

b) the date it is signed

...which is the deciding factor as to whether fees can be charged or not?

Looking to move end of May and the agent managing the property will want to charge £600 in fees (400 for first applicant, 200 for the second). If one day makes all the difference, I'd obviously want the start date to be 1st Jun!

G_M

It is the date the charges are proposed.


See also


https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

markin

The fees will be paid for by increase in rent, you can bet on that.

jonnygee2

The fees will be paid for by increase in rent, you can bet on that.

In part, but not entirely.

Fees are normally charged by property agents. Tenants generally chose a property regardless of fees based on whats available. But landlords can chose property agents purely by what they charge.

So, the charges have basically been moved from an uncompetitive market to a competitive one. And landlords are going to question the £400 contract signing fee, £200 credit check fee etc.

So, I think, this really is just going to hit property agents more than anything, particularly the ones who have been charging tenants £600+ in fees.

dimbo61

Credit checks cost £12 per address on the RLA website so £24 for 2 tenants.
Employer references !
Someone has to pay for the smart suits and posh offices ?
However landlords need to get All the checks and paperwork done right.
Gas Safety certificate, EICR, Video/Photo Inventory and report, Tenancy agreement, deed of guarantor, Deposit certificate / Deposit information and prescribed information. Right to Rent checks, How to Rent information, and PAT testing all come to mind
Fire safety with smoke alarms and CO alarms and a fire risk assessment.
Lots of people will now say that all of the above is not required by law However it is taking a risk not to do things right.
Don't forget the landlords insurance and BTL mortgages ( some of which have ) terms and conditions which discrimination against anyone on benefits and other groups in society.

System

It is the start date of the tenancy, all tenancies starting on or after the 1st June will be fall under the new legislation.


However the checks will all be performed prior to this date in order to get the tenancy set up so an agent can still charge, if you wait till after the 1st to find a property then no charges.


here is a link to the guidance for tenants as published by the Government


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791280/TFA_Guidance_for_Tenants.pdf

Blackpool_Saver

Can someone spell this out please... I can see it says you still have to pay a month upfront, plus deposit which can be 6 weeks, is this instead of 2 months? In other words will tenants now pay more?
Will there be no fee for setup? referencing? Inventory etc....so 1 month plus 6 weeks at the worst... have I got it right?

G_M

Blackpool_Saver wrote: »

Can someone spell this out please... I can see it says you still have to pay a month upfront, plus deposit which can be 6 weeks, is this instead of 2 months? In other words will tenants now pay more?
Will there be no fee for setup? referencing? Inventory etc....so 1 month plus 6 weeks at the worst... have I got it right?

Not sure how it can be better spelt out.


The guide lists the various fees/costs which can, or no longer can, be charged - and how much.


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791280/TFA_Guidance_for_Tenants.pdf

Blackpool_Saver

G_M wrote: »

Not sure how it can be better spelt out.


The guide lists the various fees/costs which can, or no longer can, be charged - and how much.


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791280/TFA_Guidance_for_Tenants.pdf

It would take hours to read all that, is there a bullet point document please? Round here it's normally 2 calendar months of rent, but I have read that it can now be 1 month plus 6 weeks, so even though the fees are going down or out completely, the deposits can go up?

System

Blackpool_Saver wrote: »

Can someone spell this out please... I can see it says you still have to pay a month upfront, plus deposit which can be 6 weeks, is this instead of 2 months? In other words will tenants now pay more?
Will there be no fee for setup? referencing? Inventory etc....so 1 month plus 6 weeks at the worst... have I got it right?

All fees will be banned under the new legislation except for


• [FONT=Arial,Arial][FONT=Arial,Arial]the rent [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial] [/FONT][/FONT]
• a refundable tenancy deposit capped at no more than five weeks’ rent where your total annual rent is less than £50,000, or six weeks’ rent where your total annual rent is £50,000 or above

• a refundable holding deposit (to reserve a property) capped at no more than one week’s rent

• payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher

• payments associated with early termination of the tenancy, when requested by the tenant

• payments in respect of utilities, communication services, TV licence and council tax; and

• A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement[FONT=Calibri,Calibri][FONT=Calibri,Calibri]. [/FONT][/FONT]


This in just basic info and there are some exemptions where the holding deposit can be retained and further information on this is in the link GM provided

Blackpool_Saver

Thank you, so Like I say instead of 2 months down it could now be 2 months and 1 week, so it might not be that much less overall layout....
I am grateful for your bullet points.