Do I need an Agent? Impact of Tenants Fee Ban.

1. Do I need an Agent? Impact of Tenants Fee Ban.

2. Tenants Fees Act • Bans all fees from letting agents andlandlords to tenants. • Will be implemented Sat 1 June 2019 • Tenancies signed before will have a transition period to the 1st June 2020 before being subject to the ban. • Gives exemptions for payments arising because of the action of the tenant (‘in default’).

3. What can be charged to the tenant? • Rent & utilities • Rent Arrears 3% above BOE interest rate (applies after 14+ days late) • Holding Fee 1 weeks rent held for a period of 14 days • Replacement tenant (mid tenancy) £50.00 (including VAT) • Lost Keys or security devices • 5 Weeks Deposit 6 weeks if rent is £50k+ a year • Surrender of tenancy Tenant pays the remainder of rent

4. What do you tell us? • 60% of landlords use an Agent • Letting Fees are a landlord’s 3rd largest cost • 80% think their letting agent will increase fees • 40% of landlords intend to increase the rents • 22% hope to shop around for a better deal. • Nearly 10% plan to stop using a letting agent Source NLA Quarterly Member Surveys

5. What an agent does Four main types of services • Letting Only • Letting and Rent Collection • Full Management • A Rent to Rent Contract An agent rents the property from the landlord and then sublets it to tenants that they find.

6. What an Agent does • Letting only most common amongst members • Valuation – advises on achievable rent levels • Marketing – take promotional photos and property details • Finds Tenants – advertises, conducts viewings • Deals with initial paperwork and legalities to initiate tenancy e.g. Reference Checks, Inventory & Tenancy Agreement

7. Reasons for using an agent • You don’t have the time or want the hassle/stress • If you’re not confident in your property management skills, or your knowledge of legal requirements • You live too far away from the property • You own a large HMO (or other property) which has a high turnover of tenants or requires more intensive management. • Fees are tax deductible

8. However… • Know YOUR responsibilities - it is ALWAYS the Landlords responsibility for ensuring legal obligations are met! • Actions carried out by the agent on your behalf are treated in law as if they had been done by you, the landlord.

9. Other reasons to think twice • Very competitive market now – esp. online • Weigh up cost of your time and you confidence / knowledge • Traditionally fees charged between 5-20% of rent • BIG SAVINGS can be made if you can / are prepared to put time and effort in

10. Going it alone: how & how much • Advertising and marketing can be free = e.g. Open Rent www.openrent.co.uk • Other online agents charge from £50 + • NLA Tenant Check from £8.95 (other services available) • NLA Inventory – circa £150+ (costs depending on service and property e.g. no. or rooms) • £75 NLA membership - forms / advice etc

11. Questions to ask your agent • Are you a member of a professional body, (NALS or ARLA) • Do you have client money protection? • How do you find tenants & how thorough is your referencing process? • Can you have a full list of services and charges on one page? • Copies of all documentation

12. Introduction to Lettings Course • NEW NLA half-day training course • Getting ready to let • Not falling foul of the law • Using an Agent or Self Management • Signposting to who can help you • Next one is 30 April in Southampton

13. Thank You • Teresa Kaczmarek: Area Representative NLA • Teresa.Kaczmarek@landlords.org.uk • Linda Cobb: Manager, Decent and Safe Homes (DASH) • Linda.cobb@derby.gov.uk