Come to look at our tenant fees?
Lucky for you, as of 1st June 2019, the Tenant Fee Ban came into action. Tenant letting fees are no longer applicable. For company lets, please see below.
What does this mean for you?
In short, there are no letting agent fees for tenants.
Yes, you heard it right!
There are no admin or agent fees for rental properties anymore!
Landlords and Letting agents cannot charge any letting agent fees for tenants, tenancy set up costs, referencing of tenants and referencing for future landlords, contract negotiations or inventories for ASTs signed on or after 1st June 2019. Please be aware that there is a transition period, for any ASTs signed before 1st June 2019
So, if you like a property, what’s the next step?
Before the tenant fee ban, if you showed interest in a property and confirmed you want to go ahead, you would have to pay tenant letting fees to take this property off the market. Now that letting agent fees are no longer applicable, we would require a holding deposit to take this property off the market. This holding deposit is work one weeks’ rent and can only be kept by the letting agent for a maximum of 15 days. These funds will then be deducted from your first month’s rent.
The holding deposit can be kept by the letting agent if;
- The tenant pulls out
- The tenant fails to take reasonable steps to enter the tenancy
- The applicant fails the right to rent in the UK
- The applicant lies on the application form
- The tenant causes unnecessary delays
You have now sent the holding deposit, so what’s next?
We start the referencing process. We use LegalforLandlords who will send you an online application form. Once passed we will then request your rent (minus the holding deposit) and a deposit which will be held by DPS or ZDS.
Then you’re good to go!
Want to know more about the tenant fee ban? Click here to be directed to our infographic with everything you, the tenant, need to know.
Does the tenant fee ban change anything for company lets?
For company lets, property manager fees for rentals still apply. We charge a standard application fee of £240 and a tenancy renewal fee of £120.
Will you, the tenant, still be charged for paying your rent late?
The Tenant Fee Ban does not affect the late rent payment fee. This tenant fee charge is the norm for all letting agents - interest at 3% above the Bank of England Base Rate from the rent due date until it is paid. However, this cannot be levied until the rent is more that 14 days in arrears.
What other charges may tenants have to pay?
Other tenant fees include an amendment fee and a change of sharers fee if requested by the tenant. Each fee will be a charge of £50.
What if you decide to terminate your tenancy early?
If you, the tenant, decides to end your contract mid tenancy, whether you’ve signed an AST or are on a company let, , you wont necessarily be charged any tenant fees. However, you will be liable for all costs to the landlord for reletting the property as well as all rent due under the tenancy until the start date of the replacement tenancy. These costs will be no more than the maximum amount of rent outstanding on the tenancy. Costs for letting a property with us can be found here.