AVOID SPIRALLING FEES
Lets look at landlord fees situation under the new Renters Rights Bill. Here is a typical 6 month tenancy under the current legislation:
Month 1, the tenant moves in and all the usual up front fees are deducted from the first months rent. Setup Fees, Inventory Fees, Deposit Registration Fees, Referencing Fees, the list goes on. Then, management fees are charged monthly as the tenancy progresses and these are usually a percentage of the rent being paid. If a landlord has chosen to invest in a rent guarantee policy, then the costs for this are typically also charged on a monthly basis.
Lets assume that the tenant stays for the initial fixed term of 6 months and then moves out. A new tenant is found and the whole fee charging process starts all over again. So, under current legislation – unless an early termination is agreed with the landlord – there can only be a maximum of 2 tenancies in a year.
A service that makes letting a property much easier and gives increased protection for landlords and their properties.
However, with no fixed term tenancies under the Renters Rights Bill, the situation changes. The first tenant could decide to only stay for 3 months, the next tenant could stay for 6 months and then a third tenant moves in. All of a sudden, there are now 3 tenancies in the year – and also 3 lots of up front fees incurred by the landlord. Theoretically, there could actually be 4 tenancies in a year if the first 3 tenancies only lasted 3 months each!
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