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

Do I need an Agent? Impact of Tenants Fee Ban. www.landlords.org.uk 1

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 od to the 1 st 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’). www.landlords.org.uk 2

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 www.landlords.org.uk 3

What do you tell us? • 60% of landlords use an Agent • Letting Fees are a landlord’s 3 rd 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 www.landlords.org.uk 4

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 A n agent rents the property from the landlord and then sublets it to tenants that they find. www.landlords.org.uk 5

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 www.landlords.org.uk 6

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. www.landlords.org.uk 7 • Fees are tax deductible

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. www.landlords.org.uk 8

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 www.landlords.org.uk 9

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 www.landlords.org.uk 10

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 www.landlords.org.uk 11

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 www.landlords.org.uk 12

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 www.landlords.org.uk 13