Summer Retainer Payment for University House Next Year

m15527

Hi there,
From September 2020 I will be renting a house with my 3 other mates for University. I have to pay a summer retainer which the property agent has said that: "a summer retainer is a payment made to retain a property over the summer months.  As student tenancy applications are usually started months in advance, sometimes 10 months - it is a security payment from the tenant to provide commitment to the Landlord.  In return, the Landlord's commitment is that the property is taken off the market and
secured for the group months in advance of when the tenancy actually starts." I have already paid a deposit for the house next year, which is refundable, but I don't believe the summer retainer is refundable? The retainer is the same amount of two months of rent for July & August. Considering the circumstances with coronavirus, I don't know where I would stand. I don't have alot of experience with this so sorry for any incorrect information, but any help or advice would be much appreciated

greatcrested

I don't believe a 'summer retainer' would be legal following the Tenant Fees Act 2019.

However, it sounds more like rent, if it is the same amount as rent would be and covers July and August. What start date is given for the tenancy?

This may also help:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819635/TFA_Tenant_Guidance_190722.pdf

If it IS a prohibited payment, my advice would be to pay it to secure the tenancy, and then once the tenancy has started in Sept to follow the guidance:

What should I do if a landlord or agent has charged a prohibited payment?

1. Check the list of permitted payments within this guidance document – if you are still unsure you could seek independent assistance from a charity like Citizens Advice.

2. Use the draft letter/email in Annex Bto ask your landlord or agent to return the payment immediately.

3. If a letting agent has charged an unlawful payment and they are refusing to return this, you could complain to the relevant redress scheme.All letting agents must belong to a Government-approved redress scheme. This information should be clearly available on the agent’s website. If this is not available, you should ask your letting agent which redress scheme they belong to. Redress schemes offer an independent dispute resolution service between tenants/landlords and agents – they do not charge for their service.

4. Contact your local authority if your landlord or agent still does not return the payment. Local authorities (usually trading standards) are responsible enforcing the ban. They can take formal enforcement action against the landlord or agent and require them to repay any fee that has been unlawfully charged. They may also require the landlord or agent to pay interest on this amount.

5. You could recover the payment directly via the First-tier Tribunal.The First-tier Tribunal is easy to access for tenants and relevant persons. You will be required to submit evidence to support any application you make (examples of evidence that you could provide are included below). The First-tier Tribunal can order a landlord or agent to repay a payment which has been charged unlawfully. The local authority may be able to assist with this process. You may have to pay a small fee to make a claim to the First-tier Tribunal. You will not be eligible for legal aid but may be eligible for other financial support to help pay any Tribumal fees.

theartfullodger

It's a holding deposit.  Which can be max 1-weeks rent.  And the terms depend largely on the terms you & landlord agreed and/or the words in any receipt/email and/or see here..

https://england.shelter.org.uk/legal/housing_options/paying_for_accommodation/paying_for_private_rented_housing#1

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Holding deposit

A holding deposit is a sum of money paid to a landlord or letting agent to secure accommodation prior to the signing of a tenancy agreement.

From 1 June 2019, new provisions relating to holding deposits were introduced under the Tenant Fees Act 2019. These include a cap (equivalent to one week's rent), a deadline for agreement and rules governing the return of a holding deposit. The provisions affect a holding deposit taken in connection with an assured tenancy, licence or tenancy granted to a student by a specified educational institution. For more information see Tenant fees; permitted payments.

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Speaking as a landlord, one week's rent is not enough incentive for me to take a property off the market,

Yes, student tenancies can be long: My agent usually signs them July to July (yes we all know students don;t move in in July-but it avoids - for me - voids and council tax issues).  That's worked OK for 14 years now, this year (2020-2021) we'll see...

youth_leader

My daughter and her friends had to pay from June to reserve their September Uni house.  Some of her friends moved in early as they had part time jobs in the Uni town, but obviously this was pre-virus.  You could ask the landlord if he would show forebearance.  

m15527

Thanks for the replies, all the advice given has been really helpful. The summer retainer is equivalent to two months rent, July & August. But I will only be moving in, in September when term starts. A few other friends have had to pay it, but I'm still unclear where I stand due to whats been happening recently. Also does the holding deposit get refunded after as I am not going to be actually living in the property for the time the summer retainer is for? Once again, so for any misinformation or any questions that may seem obvious, just do not have a lot of experience in this field especially with current circumstances. Thanks again for any help or advice

youth_leader

My daughter had two years in house shares while she was at Leeds Uni and each time had to pay rent from June.  I think you'll find it is the same everywhere.  Do speak to your mates about your house rules between you, my daughter moved in early one year and someone allowed their girlfriend to move into his room while he was abroad, she ate all my daughter's food and refused to contribute to the bills  

dimbo61

You need to read your tenancy agreement very carefully.
If it states " Summer retainer " then inform the Letting agents that this is now illegal and follow advice above.
Most student  landlords charge rent from June/July and offer a 12 months tenancy to match the University year.
However some private landlords and private/University halls of residence off free or half rent for July and August.
This is providing the tenants don't move in.
Some students want to move in on the 1st of July and some the day before term starts.
Speak to your friends who are moving in with you and contact the landlord about a rent reduction over the summer. Say half rent 
You have nothing to lose and the landlord might agree

m15527

Thanks for all the replies. I think it maybe the case that it is simply to make it a 12 month tenancy, as the rent for June/July is half. But I may sound stupid here, but why would I be charged to live in the house when I won't even be there especially with the uncertainty surrounding coronavirus. Is this just so they can make it a 12 month tenancy, even though I will not be living there at all until September, but I guess I can't really do much about that but it seems like a waste of money, especially because it will not be refunded. The letting agents have referred to it as a summer retainer throughout, but it is the value of half of the rent for June/July. Again please excuse any misinformation or simple questions due to my inexperience, any advice is much appreciated .

greatcrested

Please confirm the amounts and periods.

You've mentioned it is half rent for June/July.

You've mentioned it is equal to rent for July/August.

So: what period does it cover? How much is it (exactly), and how much is the monthly rent?

Are you also paying a 'holding deposit? How much?

What is the 'start date' written on the tenancy agreement?

As explained, and shown in the link provided earlier, this is either

1) rent, in which case the tenancy will start when the payment starts, and if you wish you could move in (and pay utilities!) or

2) it is not rent, in which case it is an illegal fee (see link  and advice earlier)

dimbo61

Student landlords have to pay the mortgage or loan every month even July and August.
Usually in the summer they also do maintenance and repairs/refub work on the properties so don't really want tenants in the houses.
Some landlords charge full rent all year round. ( Mainly London )
It's all down to supply and demand.
Having a year long tenancy avoids the issue of council tax for July/August

zagubov

Are you absolutely sure that courses will be residential rather than virtual at that point? The government (or the institutions) may decide that mixing people from all around the country might be better phased in at a later point over the coming academic year. Have you any way of checking this?