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

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      #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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        • Student letting fees ban
          Hollywood
          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
          24-01-2019, 11:42 AM
        • Reply to Student letting fees ban
          galaxy123
          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)!!
          20-02-2019, 21:21 PM
        • To be a guarantor
          Hollywood
          Hi All, I had some good news this afternoon,( I think). My son text me from Uni, (he is in his 1st year.) to say that he and 5 others have found and applied for a six bedroom house for next year. He said the agent will probably be in touch as I'm down as Guarantor.
          I've had guarantors for flats...
          26-11-2018, 16:07 PM
        • Reply to To be a guarantor
          buzzard1994
          As the parent of a student you are held to ransom and have very little choice. However the courts have been rather reluctant to enforce guarantor agreements and IME they are often done so badly that it would be difficult to get a court to enforce them.

          We have been fortunate in that our...
          14-02-2019, 08:26 AM
        • Reply to Student letting fees ban
          KTC
          Ask again in a month or two when the bill have received Royal Assent, and a commencement order have been laid down.
          01-02-2019, 12:28 PM
        • Reply to Student letting fees ban
          mind the gap
          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...
          31-01-2019, 21:27 PM
        • Reply to To be a guarantor
          mind the gap
          Wot Lawcruncher said, above. I have been using his form of guarantee for nearly ten years now and it is excellent.

          I would however add that in student joint tenancies at least, damages are nearly always claimed, in the first instance, by the joint tenancy deposit, usually the equivalent...
          11-01-2019, 20:17 PM
        • Reply to To be a guarantor
          Lawcruncher
          The form of guarantee set out above sets out to deal with the problem by saying that in the event of damage for which the tenants are reponsible the guarantor is ony liable to cover to the extent that the particular tenant he is guaranteeing is reponsible. It also confirms that the joint and several...
          11-01-2019, 10:01 AM
        • Reply to To be a guarantor
          alice123
          I am in the process of suing a particular guarantor for rental arrears, damage, cleaning of rubbish, and also certain legal costs the total amount is over 6,000 as well as tracing fees. The agent specifically drew up the AST making the guarantor responsible for legal costs. arrears and a host of other...
          11-01-2019, 00:09 AM
        • Reply to To be a guarantor
          leaseholder64
          I'm not thinking of rent, where the liability is obvious; I'm thinking of damage. In criminal law, joint enterprise is used when everyone is somewhat culpable, but only one person did the really heinous thing. Without it, they could all cast reasonable doubt as to the primary offender, making a beyond...
          10-01-2019, 23:18 PM
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