Applying for rental property now but not moving in until the end of June...fees?

M1nnsh

Hi,

Just wondered where I stand with regards to agency application fees for a rental property I will be applying for in the next week with a move in date of the end of June.

From what I gather as the tenancy will be "signed" after the 1st June I shouldn't have to pay the fees? Or am I mistaken?

Not entirely sure as I know it's not "law" just yet.

Just wondered because it would save me and my other half £360!

Thanks!

anselld

They will presumably be application and referencing fees which are payable on application. They are not banned until 1 June so unless you can delay application until then they are legal.

ognum

Fees are payable on application so apply now then pay now. If you want to save the fees pay after June 1st

System

This is a bit of a grey area and depending on who you talk to will get differing opinions.


The legislation say for all tenancies starting on or after then the fees are banned so in theory you shouldn't pay any fees but as the checks are being done prior to the 1st then the fees are legal. It does depend on when the tenancy agreement is entered in to.


When does the ban apply?


[FONT=Arial,Arial][FONT=Arial,Arial]It depends on when you entered into a tenancy agreement. The ban is being introduced in two stages.


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[/FONT]1. [FONT=Arial,Arial][FONT=Arial,Arial]From [/FONT][/FONT]1 June 2019, [FONT=Arial,Arial][FONT=Arial,Arial]if you enter into a tenancy agreement, student let or licence to occupy housing in the private rented sector, a landlord or agent will be prohibited from charging you any fees or other payments that are not included in the list of permitted payments above. [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]
[/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]Landlords will be responsible for the costs associated with setting up, renewing or ending a tenancy (e.g. referencing, administration, inventory, renewal and check-out fees). Agents and landlords do not have to pay back any fees that they have charged you before [/FONT][/FONT]1 June 2019[FONT=Arial,Arial][FONT=Arial,Arial]. You should challenge a landlord or agent if you think they are charging an unlawful fee. [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]
[/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]If you entered into a tenancy before [/FONT][/FONT]1 June 2019[FONT=Arial,Arial][FONT=Arial,Arial], a landlord or agent will still be able to charge fees up until [/FONT][/FONT]31 May 2020, [FONT=Arial,Arial][FONT=Arial,Arial]but only where these are required under an existing tenancy agreement. This might include, for example, fees to renew a fixed-term agreement where you had already agreed to pay these. Nonetheless, businesses such as letting agents are prohibited from setting unfair terms or fees under existing consumer protection legislation. If you consider the level of fees being charged to be unfair, you should discuss this with your landlord or agent. [/FONT][/FONT]


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