Welcome to Home Relief Bulletin Board
Monday 28 January 2019
by the Property Team
Post No. 73
How to prepare for a post-tenant fees world
This week we are going to work with landlords/ladies on matters related to security deposits and upfront fees for tenants.
Our session of work with them is about making the preparation regarding the incoming law that will restrict the level of deposits and ban upfront fees for tenants in the private rental market.
The incoming Tenants Fees bill from the UK Government will become the Tenant Fees Act 2019 as from the next 1st of June.
Although the Tenant Fees Act will only apply to tenancy agreements signed after the start of June 2019, it is better to start making preparations with landlords/ladies on how it is going to affect them.
Our preparatory work with them will deal with the following areas of discussion:
• How the ban on upfront fees for tenants and cap on security deposits will affect landlords/ladies’ property investment
• Exploring and rethinking a new business model of making money out of property lettings and management within the framework of the incoming newly regulated environment
• Examining areas of law and practice protecting so far property owners from bad tenants
• How to still conduct credit checks, inventories and references without tenants being charged for them
• How to tape into landlords/ladies’ protection and insurance products in the rental property sector to reduce potential risks due to property lettings
• Working on best possible ways of selecting tenants to avoid bad tenants since there will be bans and caps on what the tenants can be required to pay
• Looking into alternative sources of protection and guarantee so that landlords/ladies can adapt to the new rental world (a post-tenants fees one) and mitigate the adverse effects of the incoming change on their property investment
• How to improve margins and keep the revenue stream of your property in a deposit and tenant fees regulated environment
The above are the issues we intend to discuss with landlords/ladies and property owners. Our work will as well look at other areas of the new legislation like penalty on tenants for late rent payments and loss of keys, in particular how to implement them in the given terms and conditions of business.
We hope this week’s session of exchange of ideas with landlords/ladies will help to achieve the following outcomes:
√ Better prepared landlords/ladies to embrace the post-tenant fees world
√ Confident landlords/ladies about the prospects for letting through us or by themselves or even through a third party
√ Motivated clients to keep the property investment and lettings instructions going
√ Empowered landlords/ladies with ideas so that they can integrate bans and caps (about what the tenants could be required to pay) in their letting plans
√ Skillful customers in diversifying the property portfolio and minimizing risks and threats
√ Risk averse landlords/ladies will be informed on a range of protection and insurance products and schemes
√ Better planner landlords/ladies with peace of mind and security about their property investment
One week of discussion is not enough to get the ins and outs for a good preparation for this kind of change. However, this week is just a building block of a series of activities to come until the Tenant Fees Act 2019 becomes in force and mandatory.
Need to prepare for the post-tenant fees world, work with Home Relief!
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Thank you for reading this post.
We look forward to receiving your regular visits to Home Relief website and to doing business with you throughout 2019.
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