Hi - from time to time I have a tenant that wants to leave early and swap out for a different person. I’m fine with this assuming the new person passes a credit check, however, in theory, I figure a check-in / out report also needs doing. Can anyone clarify what fees are allowed under the new laws? I’m sure I read someone about £50 max fee, however, this wouldn’t cover new credit checks and inventory reports.
This would be a new tenancy then so you cannot charge. Do your own inventory no cost.
I’ve read that certain payments are permitted under the new act such as changes in the contract requested by the tenant:
“A £50 fee may be charged to tenants who request a change in the tenancy, such as swapping tenants. If the cost incurred is higher, this may be charged to tenants, but must evidence of the cost must be provided in writing, and the legislation actually highlights that a £50 charge should be the norm.”
Based on some articles I have read, it suggests some fees are permited under the new legislation:
“A £50 fee may be charged to tenants who request a change in the tenancy, such as swapping tenants. If the cost incurred is higher, this may be charged to tenants, but evidence of the cost must be provided in writing, and the legislation actually highlights that a £50 charge should be the norm.”
- I tried to post some links but the spam filter blocked it.
I understand . ButI find it a bit vague
You can still charge any fees agreed to before 1st June 2019. This is true until 1st June 2020. So for example, if any of your tenancy agreements have a clause saying that new tenants can be added to the AST at a cost of £xxx to the outgoing tenant, then you can still charge that.
If you are adding a new tenant to an ongoing tenancy, but the tenancy agreement contains no such terms, then you can ask tenant to pay them, but they could refuse.
If you are signing creating a new tenancy agreement, then you won’t be able to charge for referencing, etc., but you will be able to include a charge for amending the tenancy agreement. This could include adding a new tenant to the AST. You can only charge £50 maximum, unless you can demonstrate that your costs are above this and provide evidence to back that up.
More info in Part (2c) here: https://blog.openrent.co.uk/tenant-fees-ban-what-landlords-need-to-know/
Regarding an inventory, you should simply be able to update the inventory for the new tenant’s room, without having to do the whole property. This should hopefully keep the costs down!
Thanks, Sam. Very helpful.