From the 1st June 2019 a Tenant Fee Ban is being introduced by the UK government which will impact the fees that are currently charged as part of a tenancy.
This change in law will result in landlords and agents no longer being allowed to charge tenants any fees and deposits must be capped at 5 weeks* rent. As part of the Tenant Fee Ban My City Nest will cease to charge tenants for check out reports on all new tenancies, therefore landlords will be liable to pay for these along with the inventory report. As it currently stands, the landlord pays for the check in/ inventory and the tenant pays for the check out.
The new fee ban means that in addition to this Estate Agents will no longer be in a position to charge for referencing and administration fees. With regards to professional cleaning, if the landlord can demonstrate they have paid for this at the start of the tenancy then the tenant will be responsible for cleaning the property at the end to the same standard – otherwise we will still be able to deduct cleaning out of a tenants deposit.
However, we will not be in a position to dictate to tenants what cleaning company they have to use.
Landlords that have company let agreements in place will not be impacted by the tenant fee ban as this only affects private rentals on Assured Shorthold Tenancies.
We know that this measure is just another charge to landlords from the government and we shortly launch a new service which will include the costs of the check-in and check-out reports and safety certificates. Look out for the next news letter or ask within for more information.
(* tenancies that are over £960 per week will still be able to collect a 6 week security deposit)