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Tenant Fee Ban - what does it mean for me?

Tenant Fee Ban - what does it mean for me?

 

What is it?

A proposed legislation which will ban any upfront fees currently charged by letting agents. This includes administrative fees, credit check fees, tenancy renewal fees, referencing costs and many more. The legislation will also introduce a cap on deposits.

The only fees that landlords and agents can charge are;

·         The agreed rent

·         A refundable security deposit (maximum of 6 weeks rent)

·         A refundable holding deposit (maximum of 1-week rent)

 

When will it come into effect?

There are still a few hoops to go through before the legislation can be passed, but the Government expect it to come into force around March 2019.

 

How will it affect me as a landlord?

The expectation is that agencies will have to find a way to recoup their losses by charging higher fees and passing charges indirectly to landlords.

You can rest assured that this is just expectation and not the reality at Paramount.
Paramount has not charged tenants referencing fees since the beginning of 2017.


Currently our tenants do pay 50% of the inventory move-in costs. In the event that the TFB is passed, Paramount will need to look at how this cost is covered. This is something we will discuss with you in due course. Whilst we are confident in the top-quality landlords we work with, we believe that a number of letting agencies will struggle to pass inventory costs fully onto their landlords, and that could mean a difficult time for all parties at the end of the tenancy when allocating deposit funds.  

If you have any further questions regarding the tenant fee ban, and how it could impact you then please feel free to contact us on lettings@paramount-properties.co.uk. 

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