My previous tenant moved out and left property information and other maintance that handed over to them by agency (as till date it was under fully managed).
I can see agency has written charges like £40 inc VAT if rent is late more than 3 days or charges for not handling keys on time etc.
This time I am managing myself with agency’s tenant find service who found the tenant, did referencing, contract and check in inspection.
Please advise as I doubt if I can write something like this to tenant when handling keys and other documents on check in day.
What other landlords do if rent falls in arrears or keys lost etc.
There are strict rules about what can be charged for and how much. Not sure the £40 for late rent is legal @David122 may be able to advise if possible to charge a fee as well as interest on the late rent
See the guidance Tenancy Fees Act
"Default fees for late payment of rent
If the tenant is late in paying their rent, a landlord or agent may charge for payment that has been outstanding for 14 days or more. The daily interest must not be more than the annual percentage rate of 3% above the Bank of England’s base rate.
A landlord or agent can only charge a fee for default on rent, as long as that fee was part of the terms of the tenancy agreement.
Default fees for lost keys, security devices or fobs
The tenant is responsible for looking after the keys for the property throughout the tenancy. If a tenant loses a key or security device, a landlord or agent can charge a fee. This could only happen if that fee was part of the tenancy agreement.
Any fee cannot exceed the landlord or agent’s reasonable costs incurred and must be evidenced in writing to the tenant who is liable for the payment.
This act does not affect the landlord’s entitlement to recover damages through the tenancy deposit or through the courts. The act also does not affect an agent’s entitlement to recover damages through the courts for a breach of the tenancy agreement. "
Or
"Default fees for breaches of contract
A landlord can charge a default fee if you break the rules of your tenancy agreement, but only in two very specific situations:
Lost keys: If you lose a key or a security device, the landlord can charge you the reasonable cost of a replacement. They must provide a receipt to prove the cost
Late rent: If your rent is more than fourteen days late, the landlord can charge interest on the overdue amount. The interest rate is capped at three percent above the Bank of England base rate:
Obviously the first thing if a tenant falls into arrears is to talk to them and find out why and if possible a plan for them to catch up. Also consider claiming on RGI if you have that; last if they are going to get into 3 months arrears be prepared to evict..
If they lose the keys, just give them a new key and ask them to reimburse you. If they don’t, take the cost out of the deposit when they leave. It’s not a big deal really.
If the tenant doesn’t pay the rent, it is a big deal. Send them a polite informal message immediately, the first day of arrears, they need to know you monitor this and that you take it very seriously. You need to check you’ve received the rent when you should have received it diligently.
If they don’t pay and/or respond, make an RGI claim – or if you’re not insured, issue them notice with a lawyer. You’re lawyer will explain how to do it. You really don’t want to have a tenant who neither responds nor pays the rent. You have to find a way of getting them out, which won’t be easy.
If it’s a block/a combined entrance for multiple flats and they have lost keys for a communal entrance it’s a security issue for all residents and you or the managing agent for the block may need to get lock changed and replace every residents 'keys plus spares held by flat owners (if some other flats are rented). So actually can be a lot of hassle and cost depending on size of block.
I would strongly urge you to use a tenancy agreement from a landlord associations and follow their advice on additional clauses. You can now face very heavy fines for getting things wrong as well as being unable to enforce parts of the contract if you get things wrong.