What is the Tenant Fee Ban?

On June 1st, England will introduce the Tenant Fees Act, which will put an end to tenant fees, agency and admin costs. Also known as the Tenant Fee Ban, this new law which will apply to landlords and letting agents will mean that tenants will no longer be charged for things like a credit check or any other administration services. Instead of charging the tenant for making changes to the lease and picking up the keys, these costs will now have to be included in the rent under the new law. 

This will mean that letting agents will charge this to the landlord instead, while landlords who don’t use the service will have to cover the costs themselves. 

However, there has been a warning from the Tenancy Deposit Scheme (TDS) as there is one important task that should not be neglected. They have highlighted that inventories should be just as important after the new law comes in. Inventories show the state of the property before, during and after the tenant moves out. If one has not been carried out, both landlords and tenants could find themselves losing money on false claims and even damages. 

When a dispute has been raised to a professional body such as the TDC, the inventory will be taken into account and money will be deducted based on before and after the claims, so it is important to have one in place. However, with the new tenant fee ban coming into place, landlords will have to foot the cost of the bill which could mean that if they don’t use a letting agency, they may end up cutting corners to avoid spending any more money. 

With that in mind, the TDS has released new guidance on inventory reports ahead of the 1st June. The report from TDS explains:

"However well a tenant looks after their property; it will not be in the same condition at the end of the tenancy as it was at its start. Wear and tear to carpets, flooring, and other fixtures, fittings and decorations will, inevitably, have taken place."

"Even well looked after contents will deteriorate with time and use. Landlords need to allow for fair wear and tear during a tenancy. Tenants will, however, be liable for breakages, missing items, or damage to the property, which are in excess of fair wear and tear, as well as cleaning.

"These issues will arise where a property suffers because of the tenant’s carelessness, negligence, misuse or deliberate damage. Deciding which of these scenarios applies will depend on having good quality information to show a property’s contents, condition and cleanliness at the start and end of the tenancy."

Of course, this is going to be a rather tough time for landlords who do not use a letting agent, as there will be many extra aspects to consider. The following charges will be banned:

• Credit checks

• Referencing

• Professional cleaning

• Tenancy renewal

• Admin charges

• Requirements to have specific insurance providers

• Gardening services 

• Inventories

Here at Godfrey Short & Squire, we are extremely committed to looking after both our tenants and landlords. Whether you are a landlord looking to use our services or are a potential tenant looking for houses to rent in Okehampton, our expertise and knowledge of the local area can be of great help. If you have any questions, then please do not hesitate to get in touch on 01837 54504.