Tag Archives: Cardiff Landlords

Tenant Fees Guidance for Cardiff Landlords

Posted on by
Reply

Since the introduction of the Renting Homes (Fees Etc.) (Wales) Act 2019 on 1st September 2019 what can and can’t a Cardiff landlord or a letting agent charge a tenant?

The guidance clearly states that a Cardiff landlord or a letting agent can charge a tenant entering an Assured Shorthold Tenancy the following Permitted Payments:

  • Rent
  • Security deposit
  • Holding deposit
  • Payments in default
  • Payments in respect of council tax
  • Payments in respect of utilities
  • Payments in respect of a television licence
  • Payments in respect of communication services
  • Payment for ending a tenancy agreement early
  • Payments for change of sharer
  • Payments for amendment to a tenancy agreement

Anything which is not permitted is prohibited and banned by the Act.

The Act classes the following as Prohibited Payments:

  • check-in fees
  • check-out (or ‘exit’) fees
  • administration fees
  • inventory fees
  • guarantor fees

However, the Act does permit Cardiff landlords and letting agents to charge tenants for Payments in Default, so what is a Payment in Default?

A Payment in Default is a payment required by the landlord or letting agent arising from a breach of the tenancy agreement by the tenant, whether late payment of rent by its due date or some other breach. These are occasions where it would be unfair for the Cardiff landlord or letting agent to be responsible for meeting the cost to them because of the actions of the tenant.

Some examples of types of Default Payments include:

  • Missed appointments
  • Avoidable or purposeful damage to property
  • Replacement keys
  • Emergency/out of hours call-out fees

A Payment in Default can only be charged if there is a specific term in the tenancy agreement allowing for such a payment. If a Cardiff landlord or letting agent try to charge a payment in default which was not set out in the tenancy agreement, then that payment is prohibited.

The Renting Homes (Fees Etc.) (Wales) Act 2019 also advices that Welsh Ministers may make regulations to prescribe a list of payments in default which would be permitted payments under the Act, as well as a limit on what is permitted.

So Yes, a Tenant Fee ban was introduced on the 1st September 2019 by the introduction of the Renting Homes (Fees Etc.) (Wales) Act 2019, but with a well drafted AST there are circumstances when a Cardiff landlord or letting agent is within their rights to request a payment for breach of the tenancy agreement by the tenant.

If you are looking for a Cardiff Letting Agent to manage your vanilla buy-to let or HMO property that is up to date on latest legislative changes in Cardiff and across Wales, then why not complete our contact form to receive a a no obligation call from one of our team:

Cardiff Landlords Are You Catering for Retirees

Posted on by
Reply
Cardiff Landlords are you catering for Retirees

According to the mortgage lender Paragon’s latest report titled ‘The Growth of Later Life Tenants’ retiree renters and those in upper-middle age category are the fastest growing tenant groups in the private rented sector (PRS)

Paragon’s lates report showed that the number of English households in the 55-64 year old age category in the PRS with an Assured Tenancy has risen by 118% since the turn of the last decade, with those aged over 65 growing 93%. This rate of growth is nearly double the rate of the next fastest growing segment of 35-44-year-olds.

Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “There are a number of factors that may have contributed to the increase in over 55s in the PRS over the past 10 years, such as rising divorce amongst older people, poorer pension returns and men living longer.

“With the number of over 55s forecast to rise from 30% of the population to 36% by 2043 and new household formation predicted to be driven by older, single person households, the PRS will have an increasingly important role to play in providing a home for older tenants.”

Cardiff Landlords, the numbers do not lie, take a look at the overwhelming evidence that has seen a dramatic increase in the number of tenants over 55 years of age looking to access the private rented sector

Increase in number of retirees renting in the Private Rented Sector (PRS)

Cardiff landlords can access the Paragon report here https://www.paragonbank.co.uk/pcms_bo/resources/paragonbank/documents/mortgages/buy-to-let/growth-later-life-tenants

The Paragon report is based on the English Private Rented Sector (PRS) but Cardiff landlord should take head to the report’s findings and begin to look at how they can cater for this growing sector of the market.

If you would like to work with a proactive Cardiff HMO Letting Agent who are up to date with the latest market trends and housing legislation then please complete our contact form below to arrange a call from one of our team.