It’s happened! After months of waiting and a long build-up, the tenant fee ban came into effect on the 1st of June. It’s over 2 months now, and if you’re a landlord you might have noticed a few changes in the way your property is being handled. So now that the big day has come and gone, we wanted to check in and find out – what’s changed? And more importantly, what can you do about it?
What Does The Ban Mean
In its simplest form, the tenant fee ban means that private landlords and estate agents are no longer allowed to charge upfront fees before a tenant can rent a property. There are a lot of things this can cover, but the most common include administrative fees, credit check fees and referencing costs. Instead, tenants can only be charged the rent, a refundable deposit to reserve the property (with a limit of one-weeks rent), and a refundable full deposit (a maximum of 5 weeks rent). This has caused a lot of uproar among estate agents and landlords, as many rely on such fees to make a profit. So, they are having to be a bit more creative.
What Is Your Estate Agent Doing About The Ban?
The main issue with the tenant fee ban is that fees are where a lot of estate agents make their money. These fees are often ‘admin charges’ for handling accounts, and make up the majority of how the estate agent is paid. Without them, estate agents across the country started to panic – their business model hinged on these fees, and they have been pulled out from under them.
Most estate agents are trying to make up the difference in fees by passing them on to the landlord, instead of the tenant. This means that many landlords have seen their fees increase by a considerable amount, with the bad news that they will likely stay that high for the foreseeable future. There may be some fees that the estate agents decide to swallow instead of passing on, but the majority are being kicked down the field, and its actually landlords who are feeling the pinch of the ban.
The Northwood Difference
At Northwood, any landlords who are on our guaranteed rent programme aren’t charged a single penny in fees. They never have been, and even with the tenant fee ban in place, they never will. So for landlords with Northwood, it’s been business as usual, and peace of mind, as usual.
Our guaranteed rent service is one of the most popular options for landlords for a number of reasons, but mostly because it is a simple, easy way to ensure you get a monthly income. And it doesn’t necessarily cost you any more either. In fact, we are often able to pay more over a 12-18 month period because there are no fees, no commissions and no empty periods.
But it’s even better than that, because our guaranteed rent service includes a lot of extra services, all designed to give you peace of mind. For example, you will get:
- A guaranteed rental income on time, every month
- Guaranteed payment even if the property is empty
- Paid on time even if the rent is late or isn't paid at all
- No set-up fees, monthly commissions or hidden extras
- We deal with all the tenant's queries, questions and complaints
- A guaranteed contract start date - no worrying about how long it will take to find a tenant
- If ever needed, we cover the court costs & the eviction process
- Regular property inspections and maintenance management
- Guarantees on the internal condition of the property at the end of the tenancy
In other words, landlords don’t pay any fees at all, but get all the reassurance and security they could ask for. You can find out more about our guaranteed rent service by clicking here.
So, if you’re a landlord who is already feeling the squeeze of the tenant fee ban, then it might be time to make a change. At Northwood, we are always happy to help new and existing landlords get a better deal when renting our their properties, and enjoy the peace of mind they deserve. If you would like to find out more about how we can help you, just get in touch with the team today and arrange your free, no-obligation chat.