The new law was passed last February and the rent ban came into effect on June 1, 2019. However, to be an authorized payment, the amount must not exceed the loss suffered by the lessor or the reasonable costs incurred by the lessor as a result of the termination of the lease agreement, and any deductible is a prohibited payment. If the total annual rent exceeds £50,000 and is less than £100,000, landlords and agents can request up to six weeks of rental from tenants as a rental deposit. No no. For example, if you collected an administrative fee on May 20, 2019, but the lease agreement started on June 5, it would not matter, given that the obligation to pay the administrative fee was before June 1. Only if the tenant asks a lessor or rental agent for a modification, assignment or novation is a payment in return for the execution of the request an authorized payment. However, if the amount exceeds the greater amount of £50 or the reasonable costs of the person to whom payment is to be made in respect of the modification, assignment or novation of the lease, the amount of the excess is a prohibited payment. Systems for protecting clients` money for real estate agents (requirement to belong to a system, etc.) The 2019 rules will be changed (which will start from 1 April 2019) From 1 June 2019, the only payments that landlords or rental agents will be able to charge tenants for new contracts: under the Housing Rental Act, landlords must meet all legal building and health and safety requirements applicable to premises. They must also ensure that the premises can be legally inhabited at the beginning of a lease. The corresponding parts of the law will enter into force from 1 June 2019 and will apply to all new leases (as defined above) and renewals granted from that date. From April of this year (2019), all rental agents will have to have this form of insurance. This is good news for landlords since your rental income is protected, and it`s something we welcome here at Pettys. A payment to British Broadcasting Corporation for a television licence is an authorised payment if the lease provides for payment.
The maximum deposit allowed can go up to a weekly rent calculated in the same way as the rental deposit (annual rent divided by 52). The Act defines the payments that a landlord or rental agent may require „under a housing rental agreement in England“ and limits the third party contracts to which a tenant or guarantor of services and insurance must be bound. The main objective is to prevent landlords from asking for rent in the first few months to cover the cost of prohibited fees in order to circumvent the 2019 TFA provisions. . . .