According to a recent report from Homelet.co.uk, over half of the tenants in the UK are not aware or understand their rights that have been implemented to help them. Rather worryingly, a large proportion of tenants were also unaware of recent Government changes with 85% of private renters stating they were confused by the upcoming ban on tenant fees. 41% stated they were losing money due to a lack of understand regarding the deposit protection scheme whilst 32% did not clearly understand their rights when it came to claiming their deposit back.
Over half of tenants were also unaware of who is responsible for the maintenance of the property’s garden whilst 59% were also unsure as to who is responsible for decorating the property. Confusion was also evident in the responsibility for minor replacements as well as maintaining the cleanliness of the property.
The awareness of rights and responsibilities of both landlords and tenants is of the utmost importance should there be a beneficial tenancy for both parties. As of next year, the House of Lords will pass a new ban on letting agent fees charged to tenants as part of the Tenant Fees Bill. It will only be compulsory for tenants to pay rent and deposit to secure a rental property as the majority of upfront costs will be eradicated whilst security deposits will be capped at six weeks’ rent. The introduction of this new ban is primarily aimed to provide a more affordable private rented sector and ensure the charges reflect the actual economic value of the services rather than charging hidden fees.
Further changes to the bill include:
When charging a default fee such as a lock change, a proof of costs incurred such as a receipt must be presented by the landlord or letting agent.
Default payments will not be a permitted payment should the nature of the charge not be recorded in the tenancy agreement.
Consent must be obtained from the tenant for repayments on their holding deposit or a prohibited payment to dictate whether it is to be repaid through the return of their tenancy deposit or deduction of their rent.
Prohibited payment is to be paid back by the landlord or agent within a period of a week to a fortnight rather than 28 days.
Relocation agents can charge tenants when they have only sourced the property and are not working on behalf of the landlord.
Until this Bill comes into effect, letting agents can charge any fees by law as long as they are clearly shown both online as well as in branches.
Before you sign…
A landlord is obliged by law to place a tenant’s deposit into either one of three government back schemes: Deposit Protection Scheme, Tenancy Deposit Scheme and MyDeposits (for those in Scotland and Ireland separate schemes exist). For any deductions tenants have the right to challenge these charges, either through court or a deposit scheme dispute service.
A referencing fee is usually charged before the start of the actual tenancy to carry out a background check before a property is let out. These checks are almost always paid for by the tenants.
Doing research to be kept up to date on the latest developments in the area is advised. With the property market growing at a rapid rate, new bills are also increasing.
For landlords, the Residential Landlords Association offers various guides and documents covering from tenancy agreements to health and safety measures. By providing a precise tenancy agreement, responsibilities can be clearly outlined preventing future discrepancies between landlord and tenant.
A recent survey found 53% of private renters voted in the 2017 snap elections, higher than previous elections. Should there be another general election be called, 69% stated they would vote. As the number of renters is rising all over the UK, a greater awareness among tenants could influence future Private Rented Sector legislation.
