- Tenant Find 9.6% (incl. vat)
- Rent Collection 10.8% (incl. vat)
- Lettings & Management 15% (incl vat)
You will, undoubtedly, be aware that the ‘Tenant Fees Act 2019’ becomes law in respect of all Assured Shorthold Tenancies from the 1st June 2019 whether they are new tenancies or renewals after that date. The new government legislation will now result in fundamental changes to operating procedures for letting agents.
No charges can be made to the tenant for referencing fees, tenancy set up fees or inventory check out fees.
We can only collect a “holding deposit” of one week’s rent which takes the property off the market whilst references are being taken. This can be offset against the initial rent with the tenant’s written consent (see below)
A tenancy must be signed by both parties and dated within 15 days of the receipt of the holding fee: this period can be extended by mutual written consent. If we do not meet this timescale, we are duty bound to return the holding fee.
Deposits must be the equivalent of 5 weeks’ rent – with no increase if the tenant has pets.
When a tenant renews their tenancy after the 1st June 2019, we are legally bound to return to them the balance of deposit exceeding 5 weeks’ rent. The revised deposit must be re-registered with the TDS and a new certificate and Prescribed Information issued.
We will need the tenant’s signed consent to take up references : we will only be able to process the application once received.
We are only allowed to charge a small number of permitted payments during the life of the tenancy – for example, if rent is more than 14 days’ late.
We appreciate that these changes in legislation will have some impact on your investment. However, as your continued custom is of paramount importance, we are intent on minimizing extra costs to you.
We believe that it is essential that all prospective tenants are referenced. After the 1st June, the cost of this will be the responsibility of the Landlord (the charge is £50 incl. vat per applicant). Please note, our references are carried out by a leading independent company.
You will also be responsible for the cost of the checkout at the end of the tenancy.
You will appreciate that compliance to the new legislation will be time consuming and will result in an increase in our administration charges, especially as the tenant can no longer be asked to contribute to costs.
Many agents charge handling fees for works carried out on the Landlord’s behalf such as arranging the gas safety certificate or the inventory, etc. However, we adhere to the strict guidelines set by RICS & ARLA and have always been transparent in this area by not charging any “add ons”. As a result, our contractors remain loyal and competitive.
In summary, our charges to Landlords after 1st June 2019 are as follows:
- Tenancy Set Up for all new Tenancies £396 (incl vat) – this includes the Tenancy Administration fee, TDS Registration fee & Tenant References fee.
- Renewal Administration fee for Rent Collection or Managed Tenancies £175 (incl vat) – this includes the TDS Registration fee.
- Renewal Administration fee for Tenant Find Tenancies £300 (incl vat) – this includes the TDS Registration fee.
Tim Russ & Company (Lettings) is an ARLA Licensed Member and is also regulated by RICS. Client Money Protection (CMP) is provided by RICS. Independent redress is provided by The Property Ombudsman Ltd.
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