We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Is the tenancy set-up fee legal?
Wallflowerperks
Posts: 11 Forumite
Hello!
I am due to move into a new rental property on June 3rd. I have not yet signed the tenancy agreement or signed anything- including the agents’ terms of business.
I am aware of the new “ban” on many agent fees, coming into effect from June 1st.
Here is my question:
One of the fees to be banned is referencing fees to set up a tenancy which I already have paid at a cost of £275.
Because these fees are for a tenancy beginning after June 1st and an agreement I intend to sign on June 1st- are the agency required to refund me for this fee? Or is it acceptable because I actually paid it before June 1st!? I am slightly confused on the law regarding this.
Many thanks!
I am due to move into a new rental property on June 3rd. I have not yet signed the tenancy agreement or signed anything- including the agents’ terms of business.
I am aware of the new “ban” on many agent fees, coming into effect from June 1st.
Here is my question:
One of the fees to be banned is referencing fees to set up a tenancy which I already have paid at a cost of £275.
Because these fees are for a tenancy beginning after June 1st and an agreement I intend to sign on June 1st- are the agency required to refund me for this fee? Or is it acceptable because I actually paid it before June 1st!? I am slightly confused on the law regarding this.
Many thanks!
0
Comments
-
My interpretation is that whether the fee is band or not depends on the date you sign the tenancy agreement. Therefore when you sign the tenancy agreement on 3rd of June I think you can then challenge the referencing fees as unlawful and demand a refund.0
-
It's perfectly acceptable.0
-
What is the explanation for that with reference to the legislation, please?0
-
-
Wallflowerperks wrote: »What is the explanation for that with reference to the legislation, please?Wallflowerperks wrote: »Sorry... what is the explanation for that with regard to the legislation, please?
It's really quite simple - The law doesn't exist yet. It wont exist until the 1st June.0 -
-
basically if you have agreed to taking a rental property after 1st june but the paperwork and checks are done before that date then you are still liable for any set up fees.
If you agree a rental property after 1st june then you will be asked to place a holding fee which will be returned but you as the tenant will not pay for referencing and setting up the agreement directly.
If you want to avoid the fees before 1st june you need to look for an agent who has implemented the new practice early...there are some around although from what I have seen the monthly rental payment may be slightly higher.in S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
need_an_answer wrote: »basically if you have agreed to taking a rental property after 1st june but the paperwork and checks are done before that date then you are still liable for any set up fees.
If you agree a rental property after 1st june then you will be asked to place a holding fee which will be returned but you as the tenant will not pay for referencing and setting up the agreement directly.
Thank you for explaining, this is helpful. I guess I should have waited a couple more weeks then!0 -
Wallflowerperks wrote: »And thus it refers to tenancies entered into after June 1st, which mine will be.
Stop!
The law doesn't exist. Whatever it says isn't real today.
It is irrelevant. It's like on the 1st of June murder is legalised. If you kill someone today it doesn't matter.
Today they can charge you a fee. Next week they can charge you a fee.
the law does not exist. whatever you are reading is NOT REAL today.0 -
The quite clearly says from[FONT=Arial,Arial][FONT=Arial,Arial] 1st June 2019, [/FONT][/FONT]if you enter into a tenancy agreement then the fees are banned.
The key is to determine when you entered that agreement is it when the tenancy begins or is it when you sign the tenancy or is it when you agree to take the house.
In this instance the payment was lawful as Comms69 says the legislation doesn't exist till the 1st June. How long ago did the process start, if it was say a month ago suck it up if it was just a week ago shame on that agent but still lawful.
I know I'm contradicting myself but the comment in bold is my opinionThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards