Being a landlord isn’t easy and many new landlords, or people who are outside of the industry, are often surprised at the number of regulations that have to be met. Dealing with tenants, or even finding tenants, is often viewed as the most difficult part of the job but if you were to ask many landlords, remaining in touch with the latest regulations is an issue they need support with.
At Hunters Camberwell, we know how challenging the process is for landlords, and we are here to provide support. In 2018, landlords had to deal with four new regulatory issues and it looks as though 2019 is going to provide as many fresh hurdles and challenges for landlords to contend with. However, we are here to assist you.
Tenant fees ban will be an issue for landlords to contend with
A major issue for landlords to deal with will be the introduction of the tenant fees ban. This is set to come into effect from the 1st of June this year, and it is likely to have a significant impact on the way landlords operate.
From this date, landlords will not be able to charge a fee for many services, including carrying out a reference check or running an inventory list at the property. These are often essential tasks involved with letting property, and it appears as though many landlords will have to absorb the cost of this work.
Landlords will still be able to charge rent and ask for a deposit. It is also still possible for landlords to charge a fee to replace a key that has been lost or when a tenant has been late with rental payments. However, these are exceptions and landlords are advised to review their finances to ensure they are able to carry out their main tasks without losing money.
Another issue for landlords to contend with is the cap on deposits. For a rental property with an annual rent of £50,000 or less, the deposit cap will be equal to five weeks’ worth of rent. If the annual rent for the property is over £50,000; the deposit cap will be equal to six weeks’ worth of tent.
Be aware of the deposit cap
While a landlord is obliged to place the deposit into an approved deposit scheme, the cap will cause some landlords to have concerns about letting property. After all, the presence of a rental cap is often a great deterrent to poor behaviour in a tenant. Tenants are most commonly motivated by the desire to retain their deposit, and a lowering of the deposit amount may impact on this behaviour.
Landlords should also be aware that tenants are now able to sue them if the rental property fails to be of a suitable condition. This relates to the Homes (Fitness for Human Habitation) Act and this will be in effect from the 20th of March 2019. It is hoped that the vast majority of Camberwell landlords aren’t affected by this, but it may serve as a reminder of the importance of offering a dependable standard of rental accommodation.
Any Camberwell landlord who has concerns about meeting regulations in 2019 should call on us for support. At Hunters Camberwell, we aim to provide the best standard of support and guidance and we look forward to assisting you.