Keppie Massie Residential are a well-established and well respected Lettings Specialists and are members of ARLA Propertymark.
We are committed to guiding our landlords through what is an increasingly challenging time and assist them in facilitating a smooth and cost effective transition to comply with legislation whilst maximising the potential of their investment; whether that be for individual properties or portfolios.
The recent changes in legislation that are directly affecting landlords have great implications for the costs associated with running a tenancy and the additional compliance that now has to be observed to avoid substantial penalties and fines.
There will be changes to Tenancy Applications, Terms & Conditions, ASTs, Deposits and Compliance requirements, all of which will need to be addressed.
In addition to this, extensions to the Landlord Licencing Schemes are imminent which will require additional, professional attention.
The Ministry of Housing, Communities & Local Government have recently issued a newsletter for the Private Rented Sector. These cover matters such as Tenants Fees Bill, Client Money Protection and Licensing. Click Here to read the Newsletter
The Tenant Fees Act 2019
This became law on 1st June and has far reaching consequences for both landlords and agents. The Act will be robustly enforced by Local Authorities with fines of between £5,000 & £30,000 for offenders and banning orders for repeat offenders.
The Government Guidance notes alone stretch to some 59 pages, a more digestible summary is available here but of in doubt please refer to the government link: Tenants Fee Act 2019 – Guidance for Landlord and Agents
The Act basically bans tenants (or anyone connected to them) being charged any fees whatsoever, so the portion of the cost of establishing and running the tenancy normally paid by the tenant must now be borne by the landlord.
Referencing and Right to Rent checks still must be undertaken by law and an independent inventory is still recommended to protect both the Landlords property and the tenants deposit – claims against deposit without will be extremely difficult.
Many landlord’s insurance policies now also contain stipulations about referencing and inventories: we would urge you to check yours and adhere to any requirements to ensure that you remain compliant.
Landlords of leasehold flats are also recommended to check the terms of their superior lease for any changes and additional costs implemented by the freeholder.
The Government accepts that additional costs to landlords will lead to higher rents, which is precisely what happened when similar legislation was introduced in Scotland.
With all the legislation changes coming into force – and many more to follow – costs for agents, as well as landlords, will also rise. The challenge is to ensure that landlords remain protected and informed, whilst ensuring that the additional financial burdens are well managed and kept as cost effective as possible. The need for a reputable and efficient agent has never been greater and will be essential moving forward, as more and more legal requirements are introduced for landlords.
Keppie Massie Residential are best placed to do this for you.
There is undoubtedly a lot to take in and being a landlord going forward will certainly be a whole lot more complicated than it was – but we are here to help guide you through and share the burden where possible. Please remember these increases are Government led – via legislation landlords must now cover the fees that tenants used to. We are aiming to make this as cost effective as possible rather than merely transferring the whole burden onto the landlord.
Please click Here for a summary of Government Guidance
Please contact a member of our Lettings Team for further information on 0151 236 9660 or email firstname.lastname@example.org