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Landlord Charges Increasing Despite no Firm Date for Tenant Fees Ban
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Letting agents are already increasing their fees to landlords, despite no agreed date being set for the Tenant Fees Bill.
A message sent from an unnamed landlord said it was increasing management fees by 3.5%, in order to compensate for upcoming losses as a result of the tenant fees ban. The note then states that it will increase the fee only by 1.5% as the landlord is a longer-term customer.
Revealed on housepricecrash.co.uk, the message from the agent to the landlord says: “On average, other agents in the area are increasing their fees by up to 5%. We are only looking to increase our overall management fees by 3.5% but I have spoken to [Letting Agent] and as we have been managing your property for a while now, have a good relationship with you and value your custom, we are only going to increase yours by 1.5% so minimal impact.
“What is happening on tenancy renewals is that the rents are being increased to incorporate the increase and make sure you are still earning more money. Your tenant’s contract is ending in December and she has confirmed that she wants another 12 months.”
David Cox, chief executive of ARLA Propertymark, said: “I would suggest it is sensible to prepare the landlords now. These fees aren’t going to go away, they will be merged into something else.
“You can’t take that sort of money out of the industry and expect it to disappear. Tenants will end up paying the fees through their rent.”
No date has yet been given for the start of the Tenant Fees Ban, however it passed its second reading in the House of Lords, and will go to the committee stage in the coming weeks. Find all the information on the proposed changes, as we cover essential updates on the Tenant Fees Ban.
