Agent? Impact of Tenants Fee Ban. www.landlords.org.uk 1 Tenants - - PowerPoint PPT Presentation

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Do I need an Agent? Impact of Tenants Fee Ban.

www.landlords.org.uk

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Tenants Fees Act

• Bans all fees from letting agents and landlords to

tenants.

• Will be implemented Sat 1 June 2019
• Tenanc

ncies ies signed d be before e will have e a t transition sition period

• d to

the 1st

st June

e 2020 be before e be being subj bject ect to the ba ban.

• Gives exemptions for payments arising because of the

action of the tenant (‘in default’).

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What can be charged to the tenant?

• Rent & utilities
• Rent Arrears 3% above BOE interest rate (applies after 14+ days late)
• Holding Fee 1 weeks rent held for a period of 14 days
• Replacement tenant (mid tenancy) £50.00 (including VAT)
• Lost Keys or security devices
• 5 Weeks Deposit 6 weeks if rent is £50k+ a year
• Surrender of tenancy Tenant pays the remainder of rent

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What do you tell us?

• 60% of landlords use an Agent
• Letting Fees are a landlord’s 3rd largest cost
• 80% think their letting agent will increase fees
• 40% of landlords intend to increase the rents
• 22% hope to shop around for a better deal.
• Nearly 10% plan to stop using a letting agent

Source NLA Quarterly Member Surveys

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What an agent does

Four main types of services 1. Letting Only 2. Letting and Rent Collection 3. Full Management 4. A Rent to Rent Contract An agent rents the property from the landlord and then sublets

it to tenants that they find.

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What an Agent does

• Letting only most common amongst members
• Valuation – advises on achievable rent levels
• Marketing – take promotional photos and property details
• Finds Tenants – advertises, conducts viewings
• Deals with initial paperwork and legalities to initiate tenancy

e.g. Reference Checks, Inventory & Tenancy Agreement

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Reasons for using an agent

• You don’t have the time or want the hassle/stress
• If you’re not confident in your property management

skills, or your knowledge of legal requirements

• You live too far away from the property
• You own a large HMO (or other property) which has a

high turnover of tenants or requires more intensive management.

• Fees are tax deductible

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However…

• Know YOUR responsibilities - it is ALWAYS the Landlords

responsibility for ensuring legal obligations are met!

• Actions carried out by the agent on your behalf are

treated in law as if they had been done by you, the landlord.

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Other reasons to think twice

• Very competitive market now – esp. online
• Weigh up cost of your time and you confidence /

knowledge

• Traditionally fees charged between 5-20% of rent
• BIG SAVINGS can be made if you can / are prepared to

put time and effort in

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Going it alone: how & how much

• Advertising and marketing can be free = e.g. Open Rent

www.openrent.co.uk

• Other online agents charge from £50 +
• NLA Tenant Check from £8.95 (other services available)
• NLA Inventory – circa £150+ (costs depending on service

and property e.g. no. or rooms)

• £75 NLA membership - forms / advice etc

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Questions to ask your agent

• Are you a member of a professional body, (NALS or ARLA)
• Do you have client money protection?
• How do you find tenants & how thorough is your

referencing process?

• Can you have a full list of services and charges on one

page?

• Copies of all documentation

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Introduction to Lettings Course

• NEW NLA half-day training course

– Getting ready to let – Not falling foul of the law – Using an Agent or Self Management – Signposting to who can help you

• Next one is 30 April in Southampton

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Thank You

Teresa Kaczmarek: Area Representative NLA Teresa.Kaczmarek@landlords.org.uk Linda Cobb: Manager, Decent and Safe Homes (DASH) Linda.cobb@derby.gov.uk