Student letting fees ban

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    Student letting fees ban

    Hi all,
    My son is in first year at Uni and has just found a student house for 2nd year, sharing with five others. how will the tenant fees ban affect him. He has already paid a holding deposit for house. he will get the house from 9th Sep, so after date of ban.

    Hollywoos

    #2
    It's my understanding that the fees apply to contracts agreed and signed before the date of the ban, regardless of when the tenancy itself begins.

    However, a holding deposit is not a fee as such unless it is non-returnable. It's normally offset against the tenancy deposit once the tenants commit by signing the contract. By 'agent's fees' I think what is meant is the silly amounts which agents tend to charge students for 'finding them a house', typically £150-200 per student. Half the time the agents don't even accompany the prospective tenants on viewings - in busy periods they just send them to the address in the hope the current Ts will show them round. It's basically a very expensive introduction service. The fees also cover printing out a standard contract and asking their Parent Guarantors lots of nosey questions via a credit search (for which parents are usually charged extra).

    Another nice little earner is telling Ts that they must sign a new contract to renew a tenancy, when most of the time, they could just let it become periodic at no cost,.

    Needless to say, agents aren't charities, so as soon as they are not allowed to charge Ts for 'admin' , they will charge the LL instead. Private LLs aren't charities either, so they will no doubt recoup the extra charge by shoving the rent up. There's no such thing as a free lunch.

    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

    Comment


      #3
      Ask again in a month or two when the bill have received Royal Assent, and a commencement order have been laid down.
      I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

      Comment


        #4
        Now has Royal Assent. My view is that contracts signed before 1st June will not be covered, but I’m happy to be corrected (as I’m in precisely the same position)!!

        Comment

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          aroundincircles
          We are currently having a problem with a group of 6 tenants on a joint AST whereby 4 of them are unhappy with the behaviour of 1 (the 6th tenant has remained silent on the matter). The accusations revolve around late night partying, drug taking and supplying/dealing and the disgruntled group of 4 want...
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          buzzard1994
          Unless the tenants have specifically asked you to deal with the parents then it is actually illegal for you to do so. If they do authorise it (and I'd require that in writing) you can tell them what you'd tell the tenants.You need proof of the drug taking/ supplying to ask the police to take action...
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          DPT57
          Agree completely...
          12-03-2019, 11:09 AM
        • Reply to Parental involvement
          aroundincircles
          AndrewDod,

          Whilst your concerns may be real for some, in this case they are six 20/21 year olds who approached us as a group of friends wanting to rent a house for their third year of study. They are hardly adolescent children who didn't know each other. Whilst I have some sympathy for...
          11-03-2019, 16:43 PM
        • Reply to Parental involvement
          AndrewDod
          The bottom line of all of this is that the whole legal structure of student tenancies in the UK is a disaster and a disgrace. The idea that 6 adolescent children end up getting trapped in an expensive irreversible arrangement with others they may never have encountered before via a joint tenancy is...
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          aroundincircles
          The license does not say anything specific about drugs. The taking and/or supplying of drugs is a legal matter & in my opinion should be dealt with as such. I doubt that the local authority can insist that landlords take matters into their own hands.

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          DPT57
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          jpkeates
          Point out that a section 8 notice ends the tenancy and, if you were successful their child would be homeless and all of the tenants would be liable for the legal costs.
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          theartfullodger
          I've had parents wanting to get involved before. Just remind them (unless they are guarantors..) that your tenants are the kids, not them, but thank them for their kind contribution....
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          leaseholder64
          Having procedures in place really means that you must have designed and documented them before the problem arose, which would probably also mean that those procedures were reflected in the tenancy agreement.
          06-03-2019, 14:39 PM
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