Being charged to get a reference from a previous landlord - vacated property in April 2020

rider1974

Hi all,

Wondering if anybody could shed some light please.

I am currently looking to rent a property and they have asked for references from previous landlords. Not a problem of course from my current landlord but my previous one is asking for £60 for the privilege! I entered the tenancy with them in March 2019 so I know this was before the new rules came into play. 

My question is I vacated the property in April 2020 (over a year ago now), I know the rules indicate that from June 2020 the new rules came into effect for tenancies (current or not) that were entered before June 2019 (which is me). They are saying that because it has been over 6 months since I vacated they have the right to charge.

I just feel that are are taking the mickey to get money anyway they can.

I may have my wires crossed as there is mixed information on the web.

Hoping someone can help.

Many thanks

Mark

theartfullodger

You'll appreciate a landlord does not have to provide any reference at all, good, bad etc.

Such a shame prospective tenants don't require references from previous tenants about what landlord and agent are like, respecting tenants, the law etc.

Just as legal as a landlord requiring a reference from a previous landlord.

MaryNB

There's no 6 month time limit in the Tenant Fees Act guidance. They can charge for it, they just cannot charge you.

Q. Can a landlord or agent ask me or my future landlord to pay for a reference?
No: a landlord or agent cannot charge you for providing a reference in relation to privately rented housing in England.If your new agent or landlord requests a reference from a previous landlord or agent, they would have to negotiate this with them directly and pay any associated costs. If your new agent or landlord requires a reference from a previous landlord or agent and they want to charge for this, your new landlord or agent would have to negotiate this with the previous landlord or agent directly and pay any associated costs if required. 

canaldumidi

Tenant Fees Act 2019: guidance for tenants (updated September 2020)

Q. Can a landlord or agent ask me to obtain a reference?

A landlord or agent cannot require you to obtain a reference through a third-party reference service, but you can choose to obtain such a reference for yourself. A landlord or agent may ask you to supply a reference from a former landlord but you cannot be charged for doing this. If your new agent or landlord requires a reference from a previous landlord or agent and they want to charge for this, your new landlord or agent would have to negotiate this with the previous landlord or agent directly and pay any associated costs if required.

There is no '6 month' exception.

However, as artful says, the new LL/agent does not have to let the property to you and may choose not to do so rather than pay for the reference- who knows?

So an option might be to pay the fee, then challange it later once you have the tenancy signed........

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 B to 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.

theartfullodger

canaldumidi said:

However, as artful says, the new LL/agent does not have to let the property to you and may choose not to do so rather than pay for the reference- who knows?

?? Errr where did I state that about LL/agent??  £5 to a housing charity if I did. 

What I do remember stating is that ###   You'll appreciate a landlord does not have to provide any reference at all, good, bad etc.

Such a shame prospective tenants don't require references from previous tenants about what landlord and agent are like, respecting tenants, the law etc.
 #####

Best wishes to all

rider1974

Many thanks for your replies to my post, appreciate it.

A quick update, I emailed them back regarding the rule changes etc etc and they backed down and are willing to not charge me the £60 for the reference when needed which is great of course,the only thing that I have noticed is that the rental prices have gone up by £100 ish anyway per month. Obviously to take into consideration the fact that the new landlord has to pay for the references, credit checks etc etc, so I'm in a no win situation anyway. Thing is I think that ref checks, credit checks etc totals around £150 - £200 to get them all done. If I'm paying an extra £100 per month thats £1200 per year take the £200 for checks etc the landlord is still making £1000 profit. It is always in the favour of the landlord as always, I know they are putting a lot on the line by letting their properties out, and there are a few scallywags they are a pain in the a*se tenants, but for hardworking, genuine people like myself it has a pretty big wallop on the old wallet. Moan over, gonna buy a tent and live off the land....lol

Exodi

The whole rental gig is so entertaining.

Could you imagine if ex-employees reached out to their previous employers and asked for a reference - to be told "give me £50 and a bottle of wine and I'll do it"?

The form will inevitably be something like -

Name of tenant
Period of tenancy
Was rent paid on time/any late rent
Was the unit kept clean/cause any damage
Were any deductions made for any other reason
Would you rent to them again
Any other information

You'd finish it before the kettle finished boiling.

Crazy.

kingstreet

Don't Landlords accept alternatives - say twelve months' bank statements to prove the rent was paid? If I need to evidence twelve months mortgage payments that tends to be a combination of latest annual mortgage statement and bank statements to date...