Tenants Fees to be Officially Banned this summer 2019
It is not some odd and early April Fool’s Joke. It has been announced officially and approved by the House of Lords – that in the summer, tenants fees will be scrapped.
From 1st June 2019, the Tenant Fees Act is in force.
MPs have approved new laws to protect renters in the private sector paying unfair letting agents fees.
Letting agents fees include security deposits.
Some of these deposits have been sky high, but as from 1st June, these fees will be capped.
It will also abolish many upfront fees charged by letting agents.
The private rented sector will not look the same as it does now.
Many of the upfront fees are unscrupulously added and non-returnable.
Many tenants who tend to move home on a yearly or regular basis were being penalised by paying introductory fees every time they moved.
It radically strengthens the hand of renters and will put a stop to unnecessary fees charged for cleaning services.
Changing the name on the deeds and police or credit checks.
The three administrative tasks would cost very little for a letting agency to carry out.
A police check or credit check usually cost no more than £10, less if the agents shops around.
Cleaning services average about £12 per hour, and it will take no more than five hours to clean a home thoroughly and ready it for the new tenants moving in.
All in all, it should cost little more than £140 for these services, but according to Government records: renters are being charged an average of £337 in fees relating to these small administrative tasks.
Banning these fees will make the money a tenant does have to pay far more transparent.
The Tenants Fees Act will make sure of this.
At present, there are invoices that would charge renters these fees with no detailed information as to what they actually represent.
What should tenants know about fees
If you saw an invoice for £337 described as fees, you would want to know exactly what the breakdown of this cost actually is.
At present, it would seem almost £200 of this fee goes straight into the coffers of the letting agents.
So, the bill will actually prevent these fees from being charged, or it will make tenants perform their own police checks.
There definitely will be more transparency for tenants and less opportunity for letting agents add casuistic invoicing.