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the key changes resulting from the Tenant Fees Ban

- Becareful if restoring an Occupancy for you end up being based on brand-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 Form Tenant Fee Ban and GDPR compliant or download PIMS Tenancy Application [Tenant Fees Compliant and Includes GDPR).
- Deposits now topped 5 weeks where rent below ₤ 50K annum 6 weeks if above

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

- Maximum charges for late rent payments, replacing Keys and Locks and Maximum charges for changing a Tenancy.
- If you fail to comply you are prohibited from serving an Area 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 regular monthly multiply the rent by 12 then divided by 52. Then multiply the weekly figure by FIVE - please guarantee you round down computations. So do not go beyond the maximum deposit of FIVE weeks by even a cent. ONLY 6 weeks where the lease exceeds ₤ 50,000 per year

What a Tenant can be charge must adhere to Permitted Charges Legislation

BILLS ARE DEFINED as Utilities, Television Licence and Communication Services Unless otherwise agreed in writing by the Landlord, the Tenant needs to arrange to be billed for utilities charges for the residential or commercial property [electricity, gas or other fuel, or water or sewerage] and pay the tv licence fee for the residential or commercial property. The Tenant needs to arrange to be billed for interaction services suggesting a service allowing any of the following to be used- (a) a telephone besides a mobile telephone; (b) the internet; (c) cable tv; (d) satellite tv. Where the Landlord offers such utilities or services the Landlord will just charge affordable expenses incurred by the property manager for or in connection with the provision of the utility or service. The Tenant accepts stay accountable for these products after the Expiry of this Agreement up until the tenancy has actually legally ended. Where the Tenant permits, either by default of payment or particular instruction, the utility or other services to be cut off, whether throughout or at the end of the tenancy, the Tenant shall be accountable for a Landlords loss and the expenses associated with reconnecting or resuming such.

Rent Increase- The Landlord might increase the Rent after the Expiry of the fixed term of the Tenancy Agreement by providing the Tenant at least one months' notice in writing prior to a Rent Payment Day defining the amount of the brand-new rent. The Landlord will not increase the Rent throughout the fixed term of the tenancy.

Clauses charging for non permitted fees expose you to a fine

- Previously we were permitted to charge for Rent Arrears Letters, Possession Notices and penalties 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 expenses and MUST pay X for carpets and so on to be cleaned up are now unlawful

The following clauses for fees are the ONLY ones allowed

Cap on late lease interest now applies The Rent should be paid beforehand on the Rent Payment Day specified 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 complete payment is gotten.

Keys should an Occupant request an extra or lose an essential or security device offering access to the residential or commercial property and requires a replacement a charge can be charged for such. The Landlord or Agent will provide evidence in writing to the individual responsible for the payment to show that such expenses are reasonable and not surpassing ₤ 50

- Charges for variation, assignment or novation of an occupancy, should the Tenant demand of the Landlord or Agent a variation, task or novation of a tenancy [the alternative of a brand-new agreement in location of an old one], the Landlord/Agent reserves the right to charge a cost that is not likely to go beyond ₤ 50 however may do so. The Tenant shall be informed in composing a summary of the reasonable expenses 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 perform or adhere to prevailing legislation."

- LANDLORDS RIGHT TO RECOVER LOSSES The Tenant will stay liable for any reasonable costs or losses suffered by the Landlord arising from conduct of or damage triggered by the Tenant (or anyone they have welcomed into the Residential or commercial property or who is permitted to live there). The Landlord reserves the right to seek recompense for lawful costs. Such as damage, legal fees, court fees or any other losses resulting from the renter, occupiers or their visitor's failure to carry out or abide by prevailing legislation.

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

Changed to Contractual Periodic "Councils have a routine of trying to pursue proprietors for overdue Tenant council tax for they suggest, an extension as a regular is a new contract and for that reason a minimum of being less than 6 months - whereas a contractual regular might supply additional defense 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 tenant has actually consented [area 3] however take care any section 8 or area 21 notice must still be served upon the house.

Added confirmation service of essential files - did you understand should a tenant claim they did not receive a Gas Safety Certificate before start of Tenure this can invalidate an expulsion using a Section 21 Notice. We have experienced a similar argument re service of an EPC hence why consisted of. Also added confirmation tenant got GDPR alert which must have been gotten at Tenancy application stage.

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

KEYNOTE ESPECIALLY FOR LETTING AGENTS

The Ban on Letting Fees Bill is extremely rigorous and really simple to be tripped up. Not just can a Property owner or Agent be fined, the renter can obstruct expulsion, a Proprietor could pursue their Agent for substantial loss and a Representative can be barred from being a Letting Agent. The new Legislation is that extreme

Please check out the federal government assistance to Ban on Letting Fees - Which appears flawed but need to provide a defence in that you had an affordable expectation the federal government guidance be valid. 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 very first offense. If you duplicate a breach within 5 years of the fine, you may face criminal prosecution or be fined ₤ 5000 approximately ₤ 30,000. Such action may lead to being prohibited to Let or Manage Properties as might be thought about not a fit and appropriate individual under 2004 Housing Act and subject to a banning order under area 14 of the Housing Act 2016.

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

See Legislation in Detail

THE PARTIES defined in the Tenancy Agreement

Between - The "Landlord"

The Tenants are thus notified that notices (consisting of notices in procedures) need to 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 leasing to a Business usage - Company Tenancy Agreement

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

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

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

- It is wiser to constantly request for a Guarantor? If an Occupant remains in lease arrears or causes damage to the residential or commercial property, usually Landlords DO NOT recover their losses unless they have a guarantor see Rent Arrears Guarantors and Tenancy Agreements
- We ask for "Guarantor details" on the Tenancy Application Form 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 appropriate, the Landlord's ownerships listed in the "Inventory"

RESIDENTIAL OR COMMERCIAL PROPERTY ADDRESS

- If renting a room you MUST define 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 should 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 uninhabited possession being readily available)

- Confirm you have cleared Funds before you release secrets

" Expiry" on (however continuing thereafter as a Contractual Periodic legal regular occupancy meaning the very same rental durations, till notification is given and uninhabited 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?