As from the 1st June 2019, a landlord or agent, by law, cannot charge certain fees associated with all new tenancies and all renewed tenancies.
The new legislation applies to assured shorthold tenancies, student accommodation (provided by a noted educational institution) and licences (such as lodger lettings).
The regulations do not include contractual tenancies used for non-assured tenancies or company lets.
The ban has come into force to prevent unfair and unregulated fees from being charged and to improve the relationship between agents (https://www.housefox.co.uk/), landlords and tenants. This is an important aspect for ourselves as scrupulous Weston-super-Mare letting agents – and other agents nationwide.
If you are a private landlord the impact of the ban can be far-reaching. As letting agents in Portishead, Clevedon and across North Somerset, we would like to make landlords aware of the possible implications for you and your tenants.
Which fees will be banned?
This means you cannot charge prospective tenants for viewings of the property.
Fees to set up a tenancy
Fees pertaining to setting up a tenancy, including administration and time, will be covered by the landlord. This includes referencing, guarantor and inventory checks.
Fees to check out of a tenancy
You cannot charge for the natural termination of a tenancy agreement, or for having the property professionally cleaned.
You cannot charge a tenant for acquiring third-party services such as reference, credit and guarantor checks, as well as any gardening services.
With such an upheaval in legislation, landlords will need to be prudent about the services they are getting from their agent to ensure peace of mind with full legal compliance. As estate agents in North Somerset, House Fox are happy to help. Contact us to find out more.