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the key changes arising from the Tenant Fees Ban

- Becareful if renewing an Occupancy for you end up being subject to brand-new laws - See PIMS Tips restoring

- Holding Fee Max one weeks rent - Very Strict compliance rules about return and deductions. 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 topped 5 weeks where lease below ₤ 50K annum 6 weeks if above

- Admin Fees Abolished.
- Defined items 'Permitted Payments" a Proprietor can charge a Tenant

- Maximum charges for late lease payments, changing Keys and Locks and Maximum charges for changing a Tenancy.
- If you fail to comply you are forbidden from serving an Area 21 Notice to end the Tenancy, compensation the Tenant and be exposed to fines of approximately ₤ 30,000 or criminal conviction

Examples of clauses REVISED IN the PIMS Tenancy Agreement.

Note where the rent is payable month-to-month multiply the lease by 12 then divided by 52. Then increase the weekly figure by FIVE - please ensure you round down estimations. So do not go beyond the optimum deposit of FIVE weeks by even a penny. ONLY 6 weeks where the rent surpasses ₤ 50,000 per year

What a Tenant can be charge must comply with Permitted Charges Legislation

BILLS ARE DEFINED as Utilities, Television Licence and Communication Services Unless otherwise concurred in writing by the Landlord, the Tenant needs to organize to be billed for utilities charges for the residential or commercial property [electrical power, gas or other fuel, or water or sewerage] and pay the television licence fee for the residential or commercial property. The Tenant must set up to be billed for communication services suggesting a service allowing any of the following to be used- (a) a telephone other than a mobile telephone; (b) the internet; (c) cable television service; (d) satellite tv. Where the Landlord supplies such energies or services the Landlord will only charge affordable expenses incurred by the property manager for or in connection with the provision of the energy or service. The Tenant accepts stay responsible for these products after the Expiry of this Agreement until the occupancy has actually legally ended. Where the Tenant enables, either by default of payment or specific direction, the utility or other services to be cut off, whether throughout or at the end of the occupancy, the Tenant shall be responsible for a Landlords loss and the costs associated with reconnecting or resuming such.

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

Clauses charging for non permitted costs expose you to a great

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

The following clauses for charges are the ONLY ones enabled

Cap on late lease interest now uses 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 2 week, the Landlord can charge interest at 3% above the Bank of England base rate and interest will be charged up until the date full payment is gotten.

Keys should a Tenant demand a spare or lose an essential or security gadget providing access to the residential or commercial property and requires a replacement a charge can be charged for such. The Landlord or Agent shall provide proof in writing to the person responsible for the payment to demonstrate that such costs are sensible and not going beyond ₤ 50

- Charges for variation, task or novation of an occupancy, should the Tenant request of the Landlord or Agent a variation, assignment or novation of an occupancy [the substitution of a new agreement in place of an old one], the Landlord/Agent reserves the right to charge a charge that is not most likely to go beyond ₤ 50 but might do so. The Tenant will be notified in composing a summary of the reasonable costs 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 carry out or comply with dominating legislation."

- LANDLORDS RIGHT TO RECOVER LOSSES The Tenant shall remain responsible for any affordable expenses or losses suffered by the Landlord arising from conduct of or damage caused by the Tenant (or anybody 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 lawful expenses. Such as damage, legal charges, court charges or any other losses arising from the occupant, occupiers or their guest's failure to carry out or comply with dominating legislation.

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

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

Added - Tenant consent to 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 authorizations service of How To Rent Guide by email where the tenant has consented [area 3] but take care any area 8 or area 21 notification should still be served upon the home.

Added confirmation service of crucial documents - did you understand need to an occupant 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 actually experienced a comparable argument re service of an EPC for this reason why included. Also added verification tenant got GDPR alert which ought to have been obtained at Tenancy application stage.

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

KEYNOTE ESPECIALLY FOR LETTING AGENTS

The Ban on Letting Fees Bill is very strict and very simple to be tripped up. Not just can a Proprietor or Agent be fined, the renter can obstruct eviction, a Proprietor could pursue their Agent for substantial loss and a Representative can be barred from being a Letting Agent. The brand-new Legislation is that extreme

Please read the government guidance to Ban on Letting Fees - Which appears flawed however should offer a defence because you had a sensible expectation the federal government guidance be legitimate. See Government Guidance Ban on Letting fees Bill

Please guarantee you print an outdated copy for your records for this may be your ONLY defence to alleviate direct exposure against fines

- fine of approximately ₤ 5,000 for a very first offence. If you repeat a breach within 5 years of the fine, you might deal with criminal prosecution or be fined ₤ 5000 up to ₤ 30,000. Such action might lead to being banned to Let or Manage Properties as might be thought about not a fit and correct person under 2004 Housing Act and subject to a banning order under section 14 of the Housing Act 2016.

- Individual personnel of the Letting Agents possibly prohibited if thought about the person was complicit/negligent

See Legislation in Detail

THE PARTIES defined in the Tenancy Agreement

Between - The "Landlord"

The Tenants are hereby notified that notices (consisting of notifications in proceedings) must 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 remain in England or Wales see Section 48

- If you reside in the properties use Lodger Agreement.
- If renting to a Business usage - Company Tenancy Agreement

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

- If leasing to three or more sharers, in future you may need preparing consent found out more.
- No individual under 18 can sign an Occupancy.
- Name all Tenants, in law they will be "joint and severally responsible" for the Tenancy.
- Ensure all Tenants finish a PIMS Tenancy Application [Tenant Fees Compliant and Includes GDPR)

And (if suitable) The "Guarantor" Where there is a Guarantor, add their full name and address. The signing of this Agreement need to then be witnessed

- It is better to always request for a Guarantor? If an Occupant remains in lease financial obligations or causes damage to the residential or commercial property, most of the time Landlords DO NOT recuperate their losses unless they have a guarantor see Rent Arrears Guarantors and Tenancy Agreements
- We request "Guarantor information" on the Tenancy Application INCLUDES GDPR and Tenant charge Ban compliance]

THE RESIDENTIAL OR COMMERCIAL PROPERTY - defined in the Tenancy Agreement

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

RESIDENTIAL OR COMMERCIAL PROPERTY ADDRESS

- If renting a space you MUST define Room 1, where not numbered First Floor room front of the home and so on

The Residential or commercial property is provided

HELP Furnished or Unfurnished

THE TERM specified in the Tenancy Agreement

For the "Term" of

- Ideally, the first occupancy must be no longer than 6 months, where longer, think about inserting a Break Clause - The Tenancy can be no more than 3 years in Length unless a deed and witnessed

The "Commencement" - (based on uninhabited ownership being available)

- Confirm you have cleared Funds before you issue secrets

" Expiry" on (however continuing afterwards as a Contractual Periodic contractual periodic occupancy suggesting the exact same leasing periods, until notification is offered and vacant possession is gone back to the Landlord)

DATE ENDS

- If 12 months add 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?