Renting - Starting in June

SemperFi

All


Looking to start renting a place (approx £700/month) in June. Some time before 25th June.


In your opinion, should I wait until after 1st June to commit (wrt to the fees changes), or just do it whenever.


Rental monthly costs could go up to compensate for fees cap. I could miss out on a nice property in the mean time.



Any advice and guidance welcomed.


Thanks in advance

jonnygee2

I really don't think rent will go up by much, if at all, so I wouldn't worry about that.

Missing out on a place - that's a risk I suppose. You'll have to decide if it's worth saving £200 - 400 for or not.

ognum

My agents when I questioned them have set the following fees for tenant finding on my managed properties.

I can cover this from the income from my properties but of course would consider increasing the rent. I am also sure it will tip some LL over the brink to sell and that will further increase demand. My tenants stay for quite long terms, around 3 years usually. I usually have one year first terms and now will certainly not entertain a 6 month let.


“Our intention is to introduce a fee of £600 + VAT (£720.00) for finding a tenant on a managed service.

This will include the following:

Marketing on Rightmove, Zoopla, Primelocation & On The Market;
Finding your new tenant;
Comprehensive tenant referencing to include, full credit check, previous landlord referencing, full employment referencing;
Assured Shorthold Tenancy Agreement;
Bespoke Glossy Brochure;
EPC & Floorplan for marketing;
Check In Inventory;
Check Out Report;
Initial gas safety inspection;
Registration of tenant deposit with the DPS;

I have done quite a bit of research into the charges other agents will be introducing, both up front and ongoing, and I believe the above keeps us very competitive.”

Hope this helps

need_an_answer

My fees as a LL will be going up post June and I am with a very reasonable letting agent....

Make of that what you wish with regard to rents going up for tenants.

In the area in which I live rent started to go up gradually since around Feb time across the rental board,that could have been in response to an annual increase that will happen but I suspect it could also have been in response to the new rulings.


To give an example a 2 bed flat in a maintained complex has risen by between £25 -50 PCM dependant on the agents marketing them.

SemperFi

My head says to wait until June before signing anything. My heart will probably rule if I find something suitable before then.


I appreciate the impact on LLs.



My cost now would be £420. £35/month in rent increase is entirely feasible, 5%. Hmmm.



Thank you for your input though

amethystrose

I'm also looking at finding somewhere to rent and I'm not sure whether to try and wait or not either! Would be great if someone could confirm a couple things I'm not sure about:

Are the fees definitely being scrapped in June or is there a possibility it might not happen?

Also if I were to sign a contract before June, once June passes would any further fees be stopped or would I be classed as under the old rules and could still get fees for things?

Thanks

need_an_answer

amethystrose wrote: »

I'm also looking at finding somewhere to rent and I'm not sure whether to try and wait or not either! Would be great if someone could confirm a couple things I'm not sure about:

Are the fees definitely being scrapped in June or is there a possibility it might not happen?

Also if I were to sign a contract before June, once June passes would any further fees be stopped or would I be classed as under the old rules and could still get fees for things?

Thanks

At the point you sign the contract all the checks have already been done,so you are likely to have to pay for them if this happens before 1st June.

with regard to is this definitely happening all I can say is as a LL my letting agent and other local agents will be adopting this practice as of 1st june and as such are contacting their LL's to discuss the options going forward.

saajan_12

amethystrose wrote: »

I'm also looking at finding somewhere to rent and I'm not sure whether to try and wait or not either! Would be great if someone could confirm a couple things I'm not sure about:

Are the fees definitely being scrapped in June or is there a possibility it might not happen?

Also if I were to sign a contract before June, once June passes would any further fees be stopped or would I be classed as under the old rules and could still get fees for things?

Thanks

Yes "it" is definitely happening in June. What "it" is needs to be understood:
1) Fees due before June 2019: fees are still chargeable
2) Fees due between June 19 and June 20, if your tenancy started before June 19 but the fee is payable later, then it is still chargeable (e.g. for checkout fees). Most fees are not chargeable for tenancies that start after June 19.
3) Fees due after June 20: Most fees not chargeable

"Most" fees also needs to be understood.. it includes things like tenancy drafting, referencing, check in/out, etc. It doesn't include things like late rent payment, changes to tenancy agreement etc which can still be charged upto a limit.

fixx

It's worth actually checking with the local agencies. The one I rented my current place through has a sign out front at the minute saying "We've already stopped charging... our competitors still do" or something to that effect.

amethystrose

That makes a lot more sense, thank you so much, I really appreciate it!

I had also thought about sorting somewhere but not having the start date until June but that's clearly not going to work!
Now to decide if it's worth waiting!