This week the government have released guidelines for Tenants, Landlords and Letting Agents regarding the impending Tenant Fee Ban.
The documents released on April 1st“set out the government’s approach to banning letting fees paid by tenants in the private rented sector and capping tenancy deposits in England.
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy, and is part of a wider package of measures aimed at re balancing the relationship between tenants and landlords to deliver a fairer, good quality and more affordable private rented sector.”
The ban is set to come into force from 1st June 2019.
However, at HouseMates we always try to stay one step ahead in everything we do and compliance is our top priority (alongside tenant well being and happiness!).
That is why from the 1st April 2019 we have scrapped the admin fee and deposits.
Our initial start up fees totaled a maximum £250 including the deposit*, this was significantly less than our competitors who often charged around £200 for the admin fees alone and then required around one months’ deposit upfront.
We have replaced the admin fee and deposit with one simple, one off £125 payment (a contribution towards the council tax), and this is all you will ever pay**.
For more information on your rights as a tenant, head over to the .gov website or click the link below: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791280/TFA_Guidance_for_Tenants.pdf
*Higher deposits were sometimes required if the applicant had poor credit.
**There is a £40 charge if ‘you’ decided to swap rooms or house.