Tenant Fee Ban: Renters Rejoice as Admin Fees Are No More
Are you a renter? Do you feel like you get a bad deal when it comes to renting a home? Does it seem like the letting agent puts you second behind the landlord? We’re here to tell you that you’re not alone, and that, just like you, many share your concerns.
So, worry no more. Just call 555-Rent-Good now, and all of your tenant-related problems will be solved. That’s 555-Rent… ok, ok — not #EverySingleProblem will be solved, but there is some great news for tenants, and they don’t even need to call a dodgy infomercial hotline.
From June 1st, 2019, you can wave goodbye to tenant fees thanks to the Tenant Fee ban. The result will see renters save hundreds and thousands of pounds on expensive costs that are currently charged by many high-street letting agents.
So read on, and find out why the Tenant Fee Ban means that you are now very much #winning.
Tell me about these tenant fees
When you rent a home, more often than not, you’re expected to pay tenant fees before moving into the property. These tenant fees can be quite vague — to the point where high-street agents were forced to explain what each fee entailed.
Essentially, tenant fees are what you pay to the agent for the work they have to do to secure the property and are often referred to as “admin fees”. Renters need to pay them in addition to the rent, security deposit and holding deposit, which can be anywhere between four and eight week’s rent in advance.
Fees themselves can cost anywhere between £250 and £1,000. All of a sudden, you’ve forked out a fair amount of dosh before even getting the keys to your new home. With many people already priced out of the housing market, spiralling fees in the rental sector don’t lend themselves to good times.
Breaking down the fees
Let’s do some basic math to show you exactly what you will be saving once the ban comes into effect.
You’ve found a dream two-bedroom apartment with a balcony. You arrange a viewing, fall in love with the property and make an offer. The landlord is happy with the offer and accepts, so you pay a holding deposit that amounts to one week’s worth of rent.
But the agent handling the property wants £375 for admin fees, £60 for referencing, plus an extra charge if a guarantor is needed. Oh, and then there are the check-in fees for around £150 once you’ve moved in. And that’s per renter.
You’ve barely stepped foot in your new home and have already spent £585 on admin fees, one week’s rent for a holding deposit, a further three weeks to cover the first month and a six-week security deposit.
What the Tenant Fee Ban Means
From June 2019, any professional company letting a property won’t be able to charge admin fees, nor can they charge for credit checks, cleaning services, gardening services, property inventories, defleaing a property if the tenant has pets, renewal and exit fees.
The result means that tenants will save before they move into the property and during their tenancy, as agents won’t be able to charge for renewal and cleaning fees. Which, if you ask us, is some serious Asda Price savings.
Tenants can breathe a sigh of relief knowing that they won’t have to look for new homes without having to worry about cobbling together thousands of pounds. They can focus on what really matters — finding their dream property.
Paid the cost to be the boss
The Tenant Fee Ban means that you will save a bucket load, but there are still some things that you’ll be responsible for. And that in itself brings an element of confusion. Which is why we’ve put together this little bullet list to clear up what you do and don’t have to pay for as a renter.
What renters won’t have to pay
- Admin fees
- Credit checks
- Charging for guarantors
- Property inventories
- Renewal and exit fees
- Cleaning services when vacating the property
- Gardening services
- Set requirements to having specific insurance companies
- Defleaing a property as a result of tenants having pets
What renters will have to pay
- Rent payments
- Security deposit
- Holding deposit (if the holding deposit is £200, and the security deposit is £1,200, £200 will be deducted from the security deposit before you move in)
- Rent defaulting
- Assigning a new tenant (capped at £50)
- Termination of tenancy at the request of the tenant
- TV Licence
- Council tax
- Utilities such as gas, electric and broadband
Now that that’s all cleared up, you can do a little dance at the idea of saving so much, and can even make money when you move — at least you can with mashroom.
Renting. The mashroom way
We’re adding to the fantastic tenant news by creating a concept that sees tenants and landlords working together for a better letting and renting experience. Landlords can list the help of their outgoing tenants to arrange and conduct viewings through mashroom. If one of those viewings turns into a new tenant, then the outgoing one gets paid one week’s rent.
So not only are your tenant fees disappearing. Now you can make money when you move. Suddenly, everything just got a little better in the world of renters.