How do you handle the Tenant Fees ban?

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  • kelbol
    started a topic How do you handle the Tenant Fees ban?

    How do you handle the Tenant Fees ban?

    Now that LL can't charge for on-boarding fees such as inventory and credit checks, how do you handle these fees?
    Do you absorb them? increase the rent? Ask tenants to turn up with their own credit checks in hand?

    I found asking potential tenants to pay a (reasonable) fee for a credit check helped get rid of time wasters.
    If I have to pay for all these credit checks, it's going to become expensive.
    I don't think it's that easy to increase the rent either as it may end up too high.

    I didn't read the exact wording of the legislation but the gist seems to be to avoid tenants to pay fees.
    But they are not tenants until they sign the AST, so a credit check fee prior to that is not a tenant fee, just a fee.
    I'm sure though that lawmakers have thought about this, a bit too obvious...

  • midlandslandlord
    replied
    What a fabulous and thoughtful thread.

    kelbol

    >How can a LL tell if the tenant will be short-term or not if the tenant doesn't want to reveal that? Especially in the new climate that will favour longer-term tenancies, tenants would learn to present themselves as long-term.

    Is that not the professionalism of being a landlord eg judging the type of tenant and doing your references and checks? Whether you go eg for someone working a 12 month contract, or a couple with a 3 year old moving in near a primary school, or someone with a dog taking early retirement?

    And how assiduously you follow up your refs. If they are a Kiwi, do you check their credit reference in NZ, and so on?

    ML

    Leave a comment:


  • boletus
    replied
    Originally posted by jpkeates View Post

    Just wanted to thank you for the information and for making me think!
    Mutual, good to debate it with someone open minded.
    Those knowledgeable 'on the other side' tend to have their own vested interests, landlord bashing has become big business.

    Leave a comment:


  • jpkeates
    replied
    Originally posted by boletus View Post
    It hasn't JPK, London dropped off more than elsewhere (Brexit) but increases have been consistently steady since 2014.
    Look at this;

    https://www.ons.gov.uk/economy/infla...eviousReleases
    This is all interesting.

    Just wanted to thank you for the information and for making me think!

    Leave a comment:


  • boletus
    replied
    Originally posted by midlandslandlord View Post

    And how assiduously you follow up your refs. If they are a Kiwi, do you check their credit reference in NZ, and so on?
    Yes. Tenant verify advertise on this site and provide that service (there are other providers).

    I had a NZ tenant who gave a professor for a reference. Phoned up the university and spoke to him direct. He even told me to get in touch in the unlikely event of the tenant having trouble paying the rent and he would pay it himself. Looked up the family home, phoned the Father, had a good talk with him, passed me on to the Mother, reassured her. Begged me to phone them if any problems at all.
    Obviously spoke to the new employer too.

    Leave a comment:


  • boletus
    replied
    Originally posted by kelbol View Post

    Personally, I don't believe too much in references. People can write and believe anything. I prefer to look at bank statements.
    Why not do both?
    A reference is one of the start points for checking and digging. If it is false or exaggerated a landlord can make a decision accordingly.
    The other stuff is run of the mill questions. I always ask why they are renting and future intentions.
    Sure, they can lie but it is pretty easy to see through it on most things.

    Leave a comment:


  • kelbol
    replied
    Originally posted by midlandslandlord View Post
    What a fabulous and thoughtful thread.

    kelbol

    >How can a LL tell if the tenant will be short-term or not if the tenant doesn't want to reveal that? Especially in the new climate that will favour longer-term tenancies, tenants would learn to present themselves as long-term.

    Is that not the professionalism of being a landlord eg judging the type of tenant and doing your references and checks? Whether you go eg for someone working a 12 month contract, or a couple with a 3 year old moving in near a primary school, or someone with a dog taking early retirement?

    And how assiduously you follow up your refs. If they are a Kiwi, do you check their credit reference in NZ, and so on?

    ML
    12 month contract: how would you know that if the reference from work just says "I confirm that XYZ is a full time employee of ABC..."
    Or that person may well want to stay long-term despite a short work contract.

    With 3 year old kid: the kid has about 2 more years to start school. Maybe the family is renting while looking for a new place to buy.

    Early retirement: could well be renting until buying a new place too. Or will go travelling round the world shortly, or will move closer to family in X amount of time.

    Personally, I don't believe too much in references. People can write and believe anything. I prefer to look at bank statements. If there's a salary coming in every month regularly, what's the point of a work reference? That person may have been employed for 5 years and lose his job the next month anyway. The reference is worth nothing.

    Leave a comment:


  • midlandslandlord
    replied
    What a fabulous and thoughtful thread.

    kelbol

    >How can a LL tell if the tenant will be short-term or not if the tenant doesn't want to reveal that? Especially in the new climate that will favour longer-term tenancies, tenants would learn to present themselves as long-term.

    Is that not the professionalism of being a landlord eg judging the type of tenant and doing your references and checks? Whether you go eg for someone working a 12 month contract, or a couple with a 3 year old moving in near a primary school, or someone with a dog taking early retirement?

    And how assiduously you follow up your refs. If they are a Kiwi, do you check their credit reference in NZ, and so on?

    ML

    Leave a comment:


  • boletus
    replied
    Originally posted by jpkeates View Post
    The rate of the increases has dropped off considerably, bringing the South East more into line with the rest of the country.
    It hasn't JPK, London dropped off more than elsewhere (Brexit) but increases have been consistently steady since 2014.
    Look at this;

    https://www.ons.gov.uk/economy/infla...eviousReleases

    Leave a comment:


  • boletus
    replied
    Originally posted by jpkeates View Post
    The rate of repossessions has fallen overall (and slightly)
    Section 21 levels (including London) are now back to 2003 levels. There was a massive spike at the time of the report due to benefit changes, increased taxes and increased legislation all hitting at once and hitting London the hardest. Landlords reacted accordingly.
    This graph on here illustrates it perfectly (click on possession action/type by region, then on the top right drop box click only accelerated landlord);

    https://public.tableau.com/profile/m...otesandContext

    Leave a comment:


  • JK0
    replied
    Originally posted by MdeB View Post

    In areas of high demand, tenants are more likely to exercise their right to stay until evicted.
    Also, if the other rents in the area are sky high, maybe they think they'll get a nice cheap council house?

    Leave a comment:


  • MdeB
    replied
    Originally posted by jpkeates View Post
    I'd be more than interested in hearing different theories and conclusions.
    In areas of high demand, tenants are more likely to exercise their right to stay until evicted.

    Leave a comment:


  • jpkeates
    replied
    Originally posted by leaseholder64 View Post
    ]My view is that they have gone far to far and respect for the law is in serious decay because there is no credible threat of enforcement
    Couldn't agree more.

    Leave a comment:


  • leaseholder64
    replied
    Unfortunately, recent governments tend to look for solutions that reduce, rather than increase, taxes.

    (My view is that they have gone far to far and respect for the law is in serious decay because there is no credible threat of enforcement.

    In particular, for revenge evictions, you need to spend money on proactive enforcement, so that the the landlord cannot blame the tenant when the law catches up with them, but all sorts of local authority enforcement are now "intelligence based", which means they will only act if someone tells them about a problem.

    Landlord licensing is actually an attempt at proactive enforcement and finding a revenue stream for it which is outside central government austerity.)

    Leave a comment:


  • jpkeates
    replied
    Originally posted by leaseholder64 View Post
    Although limitations on s21 are off topic for the original subject, I think the government's concern about them may be more to do with revenge evictions that are too subtle to handle using current revenge eviction law.
    If that was actually a real problem, the solution is more environmental health and tenancy relations "people".
    The underlying problem isn't revenge evictions (which are a symptom), it's landlords not maintaining properties as they should.

    I can't see how more legislation, however clever, is going to change the behaviour of people already ignoring legislation.

    Leave a comment:

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