The Lettings Fees Ban - Are you Prepared?

The Lettings Fees Ban - Are you Prepared?

Published: 29/05/2019 By Elliott Rowland

The lettings Fees ban comes into force across England & Wales on the 1st June 2019. However, what does this practically mean for your business, and what should you do to make sure you're prepared?

The Legislation

Well firstly, the legislation itself. In short you can no longer charge fees for tenancies signed on or after 1st June 2019.

The only costs landlords and agents will be able to charge tenants for will be:

  • Rent.
  • Utilities and council tax if included within the tenancy.
  • A refundable deposit, capped at six weeks' rent. The cap could be five weeks' rent for properties where the annual rent is less than £50,000, under an amendment put forward in the House of Lords.
  • A refundable holding deposit to reserve the property, capped at one week's rent.
  • Changes to the tenancy requested by the tenant, capped at £50 (or "reasonable costs").
  • Early termination of the tenancy requested by the tenant.
  • Defaults by the tenant, such as fines for late rent payments or lost keys. These must be "reasonable costs", with evidence given in writing by the landlord or agent.

You must publish this information on your websites and any property portals you advertise on.

In addition, you must publish information for potential tenants about redress schemes and client money protection schemes, stating the name and details of your membership.

What do I need to do?

  • You need to clearly publish on your website and the property portals:
    • A list of the permitted payments you will charge
    • Details of your membership & name of redress scheme
    • Details of your membership & name of any client money protection (CMP) scheme
You can easily edit your website content, including your lettings fees pop up information, by logging into your VIA or V5 software. You can publish any change within seconds.

If we also facilitate the exporting of your property data to the property portals, you should send your revised wording through to helpdesk@webdadi.com and we can edit the information we send through to the property portals for you. Alternatively, if another third party sends your property data to the property portals, you should contact them directly.

What should I write?

Rightmove have published a handy template that you can use. You can find it on their website here:

https://hub.rightmove.co.uk/tenant-fee-compliance-guide-text/   

it provides a comprehensive template whereby you just need to add the relevant information to your company as prompted.

Please be aware that this article and any articles referenced within it is meant to help your understanding of the information you need to display, but does not constitute legal advise. You should always seek out your own independent legal advice for specific queries.