I’m surprised by how few landlords I’ve spoken to are aware of the upcoming tenant fee ban.
The legislation has been nearly three years in the making and will be reality from 1 June. It’s set to seriously change the private rental sector, affecting not only general tenant fees but placing restrictions on deposits and default payments.
WHY IS IT HAPPENING?
It’s not hard to guess why the tenant fee ban is happening. We’ve all heard horror stories of tenants paying extortionate fees upfront to move in to a property. While there are very reasonable landlords and agents amongst us, the lack of regulation within the lettings industry is ultimately responsible for the ban.
In comparison to the rest of Europe, it could be worse for British tenants. In Italy and Spain landlords have the option to charge up to 10% of the annual rent in outright fees.
However, we are by no means the best place for tenants. In France fees are capped, while Scotland, Germany and Ireland have no fees at all. Interestingly, Germany also adheres to rent controls and tenants enjoy strong security of tenure, with the average tenancy lasting 11 years there compared to just 20 months in England.
TIME TO PREPARE
The new legislation will affect all landlords, not just those that rely on an agent to manage their property. What’s more, with potentially bankruptcy-inducing fines at stake, landlords need to educate themselves sooner rather than later.
That’s why I’ve made it my job to give landlords everything they need to prepare in one document.
This e-book provides a full debrief of the new legislation, answering all the nitty-gritty questions and giving a detailed overview of the most common predictions for the industry after 1 June, with advice on how landlords can future-proof their rental earnings.
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