Tenant Fee Ban 2019
I guess, without stating the obvious, the most well known change that most of you will be aware of with the introduction of the Tenant Fee Ban is that all referencing fees to letting agents will be abolished from 1st June 2019. That’s a big fat zero!
This will apply to all residential tenancies starting on the 1st June onwards so if you are looking to secure a new home now and your proposed moving in date is any time after that, then you should not be paying fees.
Will this just apply to Letting Agents? No, Landlords advertising privately will also be unable to charge for referencing and must also adhere to all other conditions.
Does this mean I don’t have to be referenced? Most definitely not!! Referencing applicants for a new home is still, and always will be, essential in order to establish confirmation of income/affordability and suitability for a new home. Employment references, Landlord references and credit checks will still be taken out prior to being offered a tenancy agreement.
After all it is the Landlord that wants to know if the applicant is going to make a good tenant, isn’t it? Yes, but I have built my business on referral and recommendation and fully believe that as an Agent I have to take responsibility for who I introduce as potential tenants.
Does this mean I will be paying a higher rent? That’s a very good question…..on a daily basis now I am reading in industry forums how High Street agents are looking to recoup their proposed lost revenue by passing Tenant fees to Landlords and incorporating that into the fees they charge property owners. Landlords are operating a business, whether they own just one property or have built a portfolio over the years and when a business is failing that’s when the decision is made to sell. With more Landlords selling, less property available in the Private Rented Sector and more people either preferring to rent as a lifestyle choice or unable to get on the housing market, then the demand for rental property increases. This is what is pushing the rents up.
I have no intention of passing on the additional costs to Landlords. I am optimistic that offering competitive fees to Landlords, a one-to-one professional service and finding great Tenants fast that my business will continue to grow organically.
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