As of June 1st the widely publicised tenant fees ban came into effect, but whilst popular with tenants who have over the years been forced to pay in some cases extortionate fees, the move has left some agents and Landlords in the lurch. Fortunately, Anthony James have long practised a fair approach to lettings with minimum fees for both Landlords and Tenants and so now, even with the introduction of the fees ban and many agents having to recover income from increased Landlords fees, we are able to instead transfer some savings to our Landlords too.
We have put together a summary of what the Tenant Fees Ban means for Landlords in general, and how it affects our Landlords at Anthony James.
The Tenant Fees Ban
From 1 June 2019, agents and Landlords will not be able to charge Tenants for setting up a tenancy, for a renewal of a tenancy, or for checking out.
However, if the tenancy was entered into before 1 June 2019 and it was agreed in that contract to pay certain renewal fees, then a Landlord or agent can charge these fees for a renewed fixed-term agreement or statutory periodic agreement up until 31 May 2020. For tenancies entered into before 1 June 2019, the Landlord/agent can also charge for checking out, up until 31 May 2020.
What this means for agents.
It is well known that many letting agencies have generated profit from their tenancy fees, with spiraling costs leading to the introduction of the ban. Many agents have now been forced to recover these funds elsewhere, so you may find your fees as a Landlord have increased to cover the costs of the tenancy for the agent.
The Anthony James Approach
Private housing is a vital resource and we have long been invested in making it a fair and mutually beneficial process for Landlords and Tenants. We have only ever charged minimal fees to our tenants and therefore, with the introduction of the tenant fees ban, have decided to transfer some benefits to our Landlords too!
We are now offering our 'Find a Tenant' service from just £150 + VAT INCLUDING rent evict insurance and rental guarantee with our full managed service! Landlords can also benefit from 50% off inventories and deposit protection scheme, and our Fully Managed Service at only 10% + VAT.
If you just want us to find you a tenant, we now offer a fixed fee of just £300+VAT.
There are still exceptions where a Tenant will be required to pay tenancy related costs to the Landlord. These include:
- Refundable tenancy deposits - The new cap is five weeks rent if your annual rent is less than £50,00,0 or six weeks if your annual rent is above £50,000.
- Refundable holding depositS - capped at no more than one weeks rent.
- Payments to change the tenancy agreement (only if requested by the Tenant) to cover administration - capped at £50.
- Default charges for late payment of rent and replacement of lost keys/security device.
- Charges can be applied for early termination of the tenancy if initiated by the tenant.
To find out more simply visit our services page to see the full breakdown of our Landlord and Tenant Fees or give us a call on 01704 54 34 34.