What Is The Tenant Fee Bill?
The Tenant Fee Bill comes into action on June 1st 2019, and places restrictions on the fees and deposits lettings agencies can charge tenants. After then, the majority of fees that lettings agents commonly charge tenants will be banned. These include fees for referencing, drawing up tenancy agreements, renewal of or changes to the tenancy agreement, termination of the lease, admin costs, costs for adding guarantors to tenancy agreements and credit checks, among other charges.
Implemented to help protect tenants from disproportionate fees when moving house, the Tenant Fee Bill heavily restricts the fees lettings agencies can charge, as well as implementing restrictions on holding and security deposits.
- If the tenant requests a change to, or early termination of their tenancy.
- Utilities and council tax.
- Late rental payments.
- Tenant damages.
- Replacing keys and other security devices lost or damaged by the tenant.
Security deposits for properties under £50,000 total rent per year will also be capped at a maximum of five weeks rent, and holding deposits at no more than one week’s rent.
Landlords or agencies found to be in breach of the new laws can be fined up to £5,000 for a first offence.
How Does This Affect You?
For many letting agencies, the Tenant Fee Bill means a significant loss of income, and many agencies are increasing their property management fees or admin fees for landlords to recoup their losses. For landlords, this means a decrease in the profit they see from their investment, and more of their time and money being caught up in property fees.
What Are Jordan and Halstead Doing?
At Jordan and Halstead, we value our landlords and are committed to helping you make the most out of your investment.
In light of the Tenant Fee Bill coming into action we have committed to not raising our property management fees or other costs for landlords, and to always remain transparent and clear about the fees we do charge. Our high-quality property management services will remain the same, and our dedication and high level of service to our customers will always be our priority.
To find out more about our services for landlords, the Tenant Fee Bill and Jordan and Halstead’s commitment to keeping our fees for landlords the same, contact our friendly team today.