Tenant Charges Part 1

By in Blog with 0 Comments

Letting agents are no longer allowed to charge a fee to process a tenant’s application to rent. But this does not mean that an agent cannot ask for certain monies, so here’s Part One of our brief guide for tenants. (Landlords listen up too!)

A holding or reservation deposit.

Competition for rental property is high and sometimes, in order to prove that you are a serious contender, a letting agent might ask you for a holding deposit. Legally, this can now be for no more than one week’s rent, but it does reserve the property in your name (although not legally binding) whilst the paperwork is concluded – usually only a few days. It’s good to know that you have secured your new home and this deposit is fully refundable should the deal not go through.

 

Tenancy Deposit

The tenancy deposit covers any damage to the property and is returnable to you at the end of the tenancy, subject to the property being returned in reasonable condition. Regulations prevent letting agents or landlords charging more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the annual rent is £50,000 or above. This money must be held in an approved Client Money Protection account.

 

Utilities

Certain bills can sometimes be included in your rent, so it’s worth doing some research beforehand to ensure that the amount included is reasonable and not inflated. 

 

Changes to Tenancy agreements

Some agents used to charge extortionate rates to change minor wording in a tenancy agreement. The law now states that this must be limited to a maximum of £50, unless a ‘reasonable” higher cost is actually incurred. Again, it’s always worth checking how “reasonable” a charge is. This is not a get out of jail free card for landlords, but a protection for tenants.

Share This
George Tatham-Losh

Since forming the business in 2009, our founder, George Tatham-Losh, has become highly regarded as the local go to expert for advice on maximising property values and getting the most out of property investments, regularly speaking at events and holding well attended seminars. Born and raised in Cheltenham, George knows the town and County like no other and knows what works in the area. Alongside George is a specialist team of agents with a wealth of experience to help you sell, buy, let or rent property in Gloucestershire.

Blog Post Disclaimer

This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Downloadable Files and Images Any downloadable file, including but not limited to pdfs, docs, jpegs, pngs, is provided at the user’s own risk. The owner will not be liable for any losses, injuries, or damages resulting from a corrupted or damaged file.

Comments Comments are welcome. However, the blog owner reserves the right to edit or delete any comments submitted to this blog without notice due to :

  • Comments deemed to be spam or questionable spam.
  • Comments including profanity.
  • Comments containing language or concepts that could be deemed offensive.
  • Comments containing hate speech, credible threats, or direct attacks on an individual or group.

The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at anytime.

If in considering action upon the contents of this blog, one should always seek professional advice.

We Won Banner We Won Banner