Draft bill on fees charged to tenants

[wowfudge]

The govt has announced that at long last there is to be a draft bill banning the charging of additional tenancy related fees other than rent to tenants in England and Wales.

Ooooh good. This will incentive LL to take into account the level of charges when selecting an agent.

Its been a bad situation for so long with agents wanting £300 to renew contracts etc.

I agree - years ago when I rented privately I don't recall paying anything other than a deposit and a month's rent in advance. Mind you, the vetting process wasn't as stringent either. As a LL I was staggered that some agents were charging both the tenants and the LLs fees for the same thing and chose an agent who charged only me for putting the tenancy agreement in place.

All agents in a town will probably charge the same, as they do now. Or do where I am ( not London)

As the fees will swallow a months rent ( because I am expecting what I pay now to double) all future tenants will be offered a minimum tenancy of a year with a six month break on both sides. Easy.

As the fees will swallow a months rent ( because I am expecting what I pay now to double) all future tenants will be offered a minimum tenancy of a year with a six month break on both sides. Easy.

And probably an incentive to just let the fixed term just roll onto the monthly rolling and not sign another fixed term (because the agents will charge you for it).

Which is what used to happen - signing tenants up to consecutive fixed terms is a relatively new development.

More enterprising agents will look to undercut the competition - the amounts charged for referencing are staggering compared to the actual costs and renewal fees are the biggest con of all.

This is good to hear! Similar legislation introduced in Scotland a few years ago, and it's definitely improved things. (Unless you're a letting agent - they don't seem to like it, funnily enough...)

After first tenancy, the choice of s p t or new fixed term is currently one I give to the tenant , as they also pay. S p t is obviously fine for me as landlord.

Case by case, I think. Not London so whacking up the rent each year doesn't happen anyway.

I'm in Scotland & this has been in practice for a while. As a LL I fully agree tenants should not bear the costs. LL's can claim them back against tax. It costs me about £300 in fees for tenant finding/references.

I use a standard 6-month tenancy which then becomes rolling. My average tenancy is around 2 years. Not a biggie in the overall scheme of things.

Been on the cards for a while anyway. As has the next one, making it illegal to rent low epc properties.