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the key changes arising from the Tenant Fees Ban

- Becareful if restoring a Tenancy for you end up being subject to brand-new laws - See PIMS Tips restoring

- Holding Fee Max one weeks lease - Very Strict compliance guidelines about return and deductions. see new Holding Deposit Form.

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

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

- Maximum charges for late lease payments, changing Keys and Locks and Maximum charges for changing an Occupancy.
- If you stop working to comply you are restricted from serving an Area 21 Notice to end the Tenancy, compensation the Tenant and be exposed to fines of as much as ₤ 30,000 or criminal conviction

Examples of stipulations REVISED IN the PIMS Tenancy Agreement.

Note where the lease is payable monthly increase the rent 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 cent. ONLY 6 weeks where the lease surpasses ₤ 50,000 per annum

What a Tenant can be charge needs to comply with Permitted Charges Legislation

BILLS ARE DEFINED as Utilities, Television Licence and Communication Services Unless otherwise agreed in writing by the Landlord, the Tenant should organize to be billed for energies charges for the residential or commercial property [electrical energy, gas or other fuel, or water or sewerage] and pay the tv licence cost for the residential or commercial property. The Tenant must arrange to be billed for interaction services meaning a service allowing any of the following to be utilized- (a) a telephone other than a mobile telephone; (b) the web; (c) cable tv; (d) satellite tv. Where the Landlord supplies such utilities or services the Landlord will just charge affordable costs sustained by the property manager for or in connection with the provision of the utility or service. The Tenant accepts stay liable for these products after the Expiry of this Agreement up until the occupancy has lawfully ended. Where the Tenant enables, either by default of payment or particular instruction, the energy or other services to be cut off, whether during or at the end of the occupancy, the Tenant shall be accountable for a Landlords loss and the costs associated with reconnecting or resuming such.

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

Clauses charging for non allowed charges 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 rules for what may be charged are now explicit there is no ambiguity. These are called permitted charges. Clauses such as check out expenses and MUST pay X for carpets and so on to be cleaned are now unlawful

The following stipulations for charges are the ONLY ones allowed

Cap on late lease interest now uses The Rent should be paid beforehand 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 until the date complete payment is received.

Keys needs to an Occupant demand a spare or lose a crucial or security device admitting to the residential or commercial property and needs a replacement a fee can be charged for such. The Landlord or Agent will supply evidence in writing to the individual accountable for the payment to show that such expenses are sensible and not surpassing ₤ 50

- Charges for variation, task or novation of a tenancy, must the Tenant request of the Landlord or Agent a variation, project or novation of a tenancy [the substitution of a brand-new contract in place of an old one], the Landlord/Agent reserves the right to charge a charge that is not likely to surpass ₤ 50 but might do so. The Tenant will be notified in composing a summary of the sensible costs incurred.

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 abide by prevailing legislation."

- LANDLORDS RIGHT TO RECOVER LOSSES The Tenant will stay accountable for any sensible costs or losses suffered by the Landlord arising from conduct of or damage triggered by the Tenant (or any person they have actually invited 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 charges or any other losses resulting from the occupant, occupiers or their guest's failure to perform or comply with prevailing legislation.

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

Changed to Contractual Periodic "Councils have a practice of attempting to pursue property managers for overdue Tenant council tax for they imply, an extension as a regular is a new contract and for that reason a minimum of being less than 6 months - whereas a legal regular might offer extra 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 permits service of How To Rent Guide by e-mail where the renter has actually consented [area 3] however take care any area 8 or area 21 notification need to still be served upon the residence.

Added verification service of crucial documents - did you understand should a renter claim they did not receive a Gas Safety Certificate before commencement of Tenure this can revoke an eviction utilizing an Area 21 Notice. We have experienced a comparable argument re service of an EPC thus why consisted of. Also included confirmation occupant got GDPR notice which need 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 very strict and really simple to be tripped up. Not only can a Property manager or Agent be fined, the tenant can block eviction, a Property manager might pursue their Agent for consequential loss and an Agent can be barred from being a Letting Agent. The new Legislation is that extreme

Please read the government assistance to Ban on Letting Fees - Which appears flawed but ought to provide a defence because you had an affordable expectation the government guidance be valid. See Government Guidance Ban on Letting costs Bill

Please ensure you print an outdated copy for your records for this might be your ONLY defence to reduce exposure versus fines

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

- Individual staff of the Letting Agents possibly banned 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 thus informed that notifications (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 be in England or Wales see Section 48

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

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

- If renting to 3 or more sharers, in future you may require preparing authorization read more.
- No person under 18 can sign a Tenancy.
- Name all Tenants, in law they will be "joint and severally accountable" for the Tenancy.
- Ensure all Tenants finish a PIMS Tenancy Application Form [Tenant Fees Compliant and Includes GDPR)

And (if relevant) The "Guarantor" Where there is a Guarantor, add their complete name and address. The signing of this Agreement should then be experienced

- It is smarter to always request for a Guarantor? If an Occupant remains in lease defaults or causes damage to the residential or commercial property, more typically than not Landlords DO NOT recover their losses unless they have a guarantor see Rent Arrears Guarantors and Tenancy Agreements
- We request for "Guarantor details" on the Tenancy Application Form INCLUDES GDPR and Tenant cost Ban compliance]

THE RESIDENTIAL OR COMMERCIAL PROPERTY - specified in the Tenancy Agreement

Associating with The "Residential or commercial property" including, if relevant, 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 the home 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 tenancy must be no longer than 6 months, where longer, consider placing a Break Clause - The Tenancy can be no more than 3 years in Length unless a deed and saw

The "Commencement" - (subject to vacant possession being offered)

- Confirm you have cleared Funds before you provide secrets

" Expiry" on (but continuing thereafter as a Contractual Periodic contractual regular tenancy indicating the exact same leasing periods, until notification is given and vacant belongings is gone back 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?