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the essential changes arising from the Tenant Fees Ban

- Becareful if restoring an Occupancy for you end up being based on new laws - See PIMS Tips restoring

- Holding Fee Max one weeks rent - Very Strict compliance rules about return and reductions. see new Holding Deposit Form.

- Ensure Your Tenancy Application Tenant Fee Ban and GDPR certified or download PIMS Tenancy Application Form [Tenant Fees Compliant and Includes GDPR).
- Deposits now capped 5 weeks where lease listed below ₤ 50K year 6 weeks if above

- Admin Fees Abolished.
- Defined products 'Permitted Payments" a Property owner can charge a Renter

- Maximum charges for late rent payments, replacing Keys and Locks and Maximum charges for altering an Occupancy.
- If you fail to comply you are forbidden from serving a Section 21 Notice to end the Tenancy, recompense the Tenant and be exposed to fines of approximately ₤ 30,000 or criminal conviction

Examples of provisions REVISED IN the PIMS Tenancy Agreement.

Note where the lease is payable monthly increase the lease by 12 then divided by 52. Then increase the weekly figure by FIVE - please guarantee you round down computations. So do not exceed the optimum deposit of FIVE weeks by even a penny. ONLY 6 weeks where the rent exceeds ₤ 50,000 per annum

What an Occupant can be charge should abide by Permitted Charges Legislation

BILLS ARE DEFINED as Utilities, Television Licence and Communication Services Unless otherwise concurred in composing by the Landlord, the Tenant needs to arrange to be billed for utilities charges for the residential or commercial property [electrical energy, gas or other fuel, or water or sewage] and pay the television licence cost for the residential or commercial property. The Tenant must organize to be billed for communication services implying a service allowing any of the following to be utilized- (a) a telephone besides a mobile telephone; (b) the web; (c) cable; (d) satellite television. Where the Landlord supplies such utilities or services the Landlord will just charge affordable expenses sustained by the property manager for or in connection with the arrangement of the energy or service. The Tenant consents to remain liable for these items after the Expiry of this Agreement till the tenancy has legally ended. Where the Tenant allows, either by default of payment or specific guideline, the energy or other services to be cut off, whether throughout or at the end of the tenancy, the Tenant will be liable for a Landlords loss and the expenses related to reconnecting or resuming such.

Rent Increase- The Landlord might increase the Rent after the Expiry of the set term of the Tenancy Agreement by offering the Tenant a minimum of one months' notice in composing previous to a Lease Payment Day specifying the quantity of the new lease. The Landlord will not increase the Rent during the fixed regard to the tenancy.

Clauses charging for non permitted charges expose you to a fine

- Previously we were allowed to charge for Rent Arrears Letters, Possession Notices and penalties for Tenant non-performance this is no longer the case. The rules for what might be charged are now explicit there is no ambiguity. These are called permitted charges. Clauses such as check out costs and MUST pay X for carpets and so on to be cleaned are now unlawful

The following provisions for fees are the ONLY ones enabled

Cap on late rent interest now applies The Rent must be paid in advance on the Rent Payment Day defined in this Tenancy Agreement. If the Rent is late by more than 14 days, the Landlord can charge interest at 3% above the Bank of England base rate and interest will be charged till the date full payment is gotten.

Keys must an Occupant demand a spare or lose a crucial or security device admitting to the residential or commercial property and requires a replacement a cost can be charged for such. The Landlord or Agent will provide proof in composing to the individual accountable for the payment to demonstrate that such costs are sensible and not exceeding ₤ 50

- Charges for variation, project or novation of a tenancy, should the Tenant demand of the Landlord or Agent a variation, task or novation of a tenancy [the replacement of a new contract in location of an old one], the Landlord/Agent reserves the right to charge a fee that is not most likely to exceed ₤ 50 however might do so. The Tenant will be alerted in writing a summary of the affordable expenses sustained.

IMPORTANT TENANT LIABILITY WHILST PERMITTED CHARGES ARE DEFINED IT DOES NOT REMOVE THE LANDLORDS RIGHT TO SEEK RECOMPENSE FOR THE TENANTS FAILURE TO COMPLY. INCLUSION OF A GENERIC LOSS CLAUSE WITH CAVEAT "failure to perform or adhere to dominating legislation."

- LANDLORDS RIGHT TO RECOVER LOSSES The Tenant shall remain responsible for any sensible expenses or losses suffered by the Landlord arising from conduct of or damage brought on by the Tenant (or anyone they have actually welcomed into the Residential or commercial property or who is permitted to live there). The Landlord reserves the right to seek compensation for legal expenses. Such as damage, legal fees, court costs or any other losses resulting from the renter, occupiers or their guest's failure to carry out or abide by dominating legislation.

Additional Key Updates to the PIMS Tenancy Agreement 1st JUNE 2019

Changed to Contractual Periodic "Councils have a routine of attempting to pursue landlords for unsettled Tenant council tax for they indicate, an extension as a routine is a new contract and therefore a minimum of being less than 6 months - whereas a contractual regular may provide additional security to the Landlord.

Added - Tenant grant email them the How to Rent Guide

Why - The Statutory Instrument 2015 No. 1646 The Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015 licenses service of How To Rent Guide by email where the occupant has actually consented [section 3] but take care any area 8 or area 21 notification need to still be served upon the residence.

Added confirmation service of essential documents - did you understand need to a tenant claim they did not receive a Gas Safety Certificate before beginning of Tenure this can revoke an expulsion utilizing an Area 21 Notice. We have experienced a comparable argument re service of an EPC thus why consisted of. Also added verification tenant got GDPR notification which ought to have been acquired at Tenancy application stage.

- PIMS Tenancy Application Form now includes GDPR and Ban Tenant Fees Compliant - Download Here

KEYNOTE ESPECIALLY FOR LETTING AGENTS

The Ban on Letting Fees Bill is really stringent and really easy to be tripped up. Not just can a Property manager or Agent be fined, the occupant can block eviction, a Property owner could pursue their Agent for substantial loss and a Representative can be barred from being a Letting Agent. The brand-new Legislation is that serious

Please check out the federal government assistance to Ban on Letting Fees - Which appears flawed however ought to supply a defence in that you had an affordable expectation the federal government assistance stand. See Government Guidance Ban on Letting fees Bill

Please ensure you print an outdated copy for your records for this may be your ONLY defence to mitigate exposure against fines

- fine of approximately ₤ 5,000 for a first offence. If you duplicate a breach within 5 years of the fine, you might deal with prosecution or be fined ₤ 5000 approximately ₤ 30,000. Such action might result in being prohibited to Let or Manage Properties as might be thought about not a fit and proper individual under 2004 Housing Act and based on a prohibiting order under area 14 of the Housing Act 2016.

- Individual staff of the Letting Agents perhaps prohibited if thought about the person was complicit/negligent

See Legislation in Detail

THE PARTIES specified in the Tenancy Agreement

Between - The "Landlord"

The Tenants are hereby alerted that notices (including notifications in proceedings) should be served on the Landlord by Tenants at the following address.

- New Landlord see our Tenancy Check List

- The Address of Landlord or Agent MUST be in England or Wales see Section 48

- If you live in the premises utilize Lodger Agreement.
- If leasing to a Business use - Company Tenancy Agreement

And The "Tenant" (note that under an AST an optimum of 4 Tenants is permitted)

- If renting to three or more sharers, in future you may need planning approval learnt more.
- No individual under 18 can sign a Tenancy.
- Name all Tenants, in law they will be "joint and severally accountable" for the Tenancy.
- Ensure all Tenants complete a PIMS Tenancy Application Form [Tenant Fees Compliant and Includes GDPR)

And (if applicable) The "Guarantor" Where there is a Guarantor, include their full name and address. The signing of this Agreement should then be seen

- It is better to constantly ask for a Guarantor? If a Tenant remains in rent defaults or triggers damage to the residential or commercial property, typically Landlords DO NOT recuperate their losses unless they have a guarantor see Rent Arrears Guarantors and Tenancy Agreements
- We request for "Guarantor information" on the Tenancy Application Form INCLUDES GDPR and Tenant cost Ban compliance]

THE RESIDENTIAL OR COMMERCIAL PROPERTY - defined in the Tenancy Agreement

Connecting to The "Residential or commercial property" consisting of, if suitable, the Landlord's belongings listed in the "Inventory"

RESIDENTIAL OR COMMERCIAL PROPERTY ADDRESS

- If leasing a room you MUST specify Room 1, where not numbered First Floor space front of your house etc

The Residential or commercial property is supplied

HELP Furnished or Unfurnished

THE TERM defined in the Tenancy Agreement

For the "Term" of

- Ideally, the first occupancy should be no longer than 6 months, where longer, consider placing a Break Clause - The Tenancy can be no greater than 3 years in Length unless a deed and experienced

The "Commencement" - (subject to vacant possession being readily available)

- Confirm you have cleared Funds before you release keys

" Expiry" on (however continuing thereafter as a Contractual Periodic legal routine occupancy meaning the same rental periods, up until notification is offered and vacant belongings is returned to the Landlord)

DATE ENDS

- If 12 months include one year then minus 1 day. So if starts 15th as above would end on the 14th January 2020
- What do I do if the Tenant refuses to leave at the end of the Tenancy Agreement?