What is the Tenancy Fee Ban?

New legislation which will come into force on the 1^st of June 2019, which will ban any upfront fees currently charged by letting agents. This includes administrative fees, credit check and referencing fees, tenancy renewal fees 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)

How will it affect Landlords?

If we read all the press, there seems to be an expectation that agencies will have to find a way to recoup their losses by charging extortionate and sometimes hidden fees to landlords. You can rest assured that this is just expectation and not the reality at Kit Ram Residential. We are very and have always been transparent with our fees

Previously our tenants did pay around 50% of the inventory move-in costs. Now that the Tenancy Fee Ban has a commencement date, Of course we will have to cover our overheads to retain the amount of work we do hear at Kit Ram Residential. As our current landlords are aware, we have already implemented our increased set up fee, which is a justifiable amount. We will not have any hidden charges.

Whilst we are confident in the top-quality landlords we work with, we believe that several other letting agencies especially the larger chains and franchisers will struggle to pass inventory, referencing costs etc, 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 affects you, then please feel free call us at any time.