How does the Tenant Fees Act affect you?

WHAT IT MEANS FOR OUR LANDLORDS AND TENANTS:

• • • Tenant and guarantor referencing, right to rent and credit check, contract administration costs are included in our main letting commission.
  • • Security deposits are capped to 5 weeks for annual rents below £50,000.
      If existing security deposits are 6 weeks. Moreover, 1-week rent will have to be refunded to the tenant at the next tenancy renewal date. It is not allowed anymore to ask a higher security deposit for pets.
  • • Security deposits for annual rents above £50,000 stay at 6 weeks.
  • • Holding deposits (1-week rent) can only be retained for 15 days or for an agreed time. If the tenant pulls out after 15 days or drags its feet beyond the agreed deadline, the holding deposit is not refunded. If the landlord pulls out after 15 days or drags its feet past the agreed deadline, the holding deposit must be refunded.
  • • Change of tenant during the tenancy can be charged a maximum of £50 if the tenant has requested it.
  • • In case of early tenancy termination initiated by the tenant. It is allowed to charge the rent loss due until the end of the initial tenancy agreement. But it is not clear what is considered reasonable by the law. If a tenancy is signed for 2 years and the tenant leaves early, it wouldn’t be reasonable to charge the nearly 2 years’ rent.
  • • Deposit registration to the DPS is free of charge, as always.
  • • In case of loss of keys and security devices (FOB), tenants can be charged at a reasonable cost.
  • • Check-in AND check-out inventory reports are issued by a third party and are now at the landlord’s charge. Costs vary according to the number of bedrooms and the property’s size, ranging from £200 to £380 for both reports.
  • • Our tenancy agreement states that tenants are responsible for returning the property in the same condition as when they received it. If a tenant fails to clean satisfactorily, we will deduct the cost from the security deposit. Any damage caused by tenants is also to be deducted, as before. Fair tear and wear is excluded.
  • • Rent arrears and interests can still be charged to tenants at 3% above the Bank of England’s rate, from the day the rent is due until it is paid. However, it is not allowed to charge anything if the payment delay is under 14 days.