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TODAY'S OTHER NEWS

Inventory provider anticipates a surge in tenant activity next month

Landlords and letting agents are being urged to prepare for a significant increase in tenant activity from the start of next month.

No Letting Go believes that many tenants will be looking to move after the Tenant Fees Act officially becomes law on June 1 in order to avoid paying upfront fees and benefitting from capped security and holding deposits.

The inventory provider’s prediction follows on from recent research from The Deposit Protection Service (DPS) which suggested that tenants could be delaying moves between rental properties until the ban of tenant fees comes into play next month.

The study found that rents dropped during the first quarter of 2019, with the average rent across the country during the first three months of the year falling to £757 per calendar month, down £14, or 1.9%, from the corresponding period last year.

The DPS said that the marginal decline in rents is largely owed to a range of economic factors alongside a period of 'tenant inactivity' ahead of the fees ban.

Nick Lyons, CEO and founder of No Letting Go, said: “It’s no surprise to see shrewd tenants delaying moves until after the fees ban and deposit caps are introduced on June 1," says Nick Lyons, CEO and Founder of No Letting Go.

“The upfront cost of moving between rental homes can be high - particularly in London and the South East - so renters will do anything they can to keep costs down, even if that means putting their move on hold for a few months.”

He added: Tenants are likely to have continued searching for properties over the last few months and will be keen to push their moves through as quickly as possible so they can be settled in their new property for the majority of the summer months.”

No Letting Go also reminds landlords that when the five-week deposit cap comes into force, the presence of an independently compiled inventory will become even more valuable towards protecting their investment.

Lyons continued: “Inventory reports confirm the condition of a rental property at the beginning and end of a tenancy. The presence of this document provides landlords with the evidence to make fair deductions for damage and lost items.

“With the fees ban likely to reduce average deposits in some areas, it’s vital that landlords have peace of mind that their property is protected by an inventory that can support them in the event they need to make deposit deductions.”

Poll: Do you think there will be a sharp rise in tenant activity after the Tenant Fees Act officially becomes law on June 1?

PLACE YOUR VOTE BELOW

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    I use a template which I got from a previous agent and that combined with detailed photographs is more than sufficient.
    I think that High Street letting agencies are going to become a thing of the past, as I am definitely not going to pay them a tenant find fee PLUS what the tenant used to pay for, previous to this madness.
    I am astounded that the government seem to be of the opinion that all these checks etc cost nothing to carry out?

     
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    Self manage using open rent never ever use an agent me it’s not hard at all

  • Paul Barrett

    Well if I need to tenant source I will still be charging 8 weeks rent and won't be paying for referencing.
    Any tenant prospect will need to provide me with a Tenant Referencing Passport
    Those tenant prospects that refuse to provide me with their TRP; which would be their prerogative then I simply won't consider them.
    It is the right of every tenant prospect to not be considered by a LL.
    As for 8 weeks rent as deposit
    I will take the additional 3 weeks included in the rent over a 6 month period.
    At the expiry of the 6 month AST I will issue a new AST for a lower rent which magically will be what it would have been without the 3 weeks rent as additional deposit.
    I month before the 2nd AST expiry I will issue a S13 rent increase for an extra £100 pcm.
    This will be advised to the tenant at the outset of the initial AST.
    I will add an appendix to the 2nd AST advising that as far as I am concerned the tenants may regard the 2nd AST as a periodic tenancy where I would accept 1 months NTQ at any time as though a periodic tenancy.
    When the tenants vacate I will return the 5 weeks deposit.
    I will then as a 'goodwill' gesture give the outgoing tenants an amount in cash equal to 3 weeks of rent.
    Obviously if circumstances warrant all the deposit is used up then it is unlikely that a 'goodwill' gesture would be forthcoming.
    So tenants thinking they can avoid costs to obtain a tenancy with me will be sorely mistaken.
    Tenants will actually get a better deal as they should only need one TRP which could be used for all LL and LA.
    This would mean no LL or LA would ever need to pay for any Referencing as the tenant would already have done it.
    No TRP no tenancy possibility.
    Tenants will soon get their TRP.
    Now if 6 month AST are banned I shall have to consider a new strategy.
    But no way will I take less than 8 weeks rent as a deposit.
    I will always be able to avoid the legislation that prevents me taking 8 weeks rent as a deposit.
    Govt has been very stupid in restricting deposits.
    It should have known that no LL would that stupid to take more than 2 months rent as a deposit.
    Clearly they didn't know anything about premium tenancies!

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    Here you go again. Suggesting fraud on a grand scale. Why are you not sitting on what you are talking out of you fool.

    Just a thought - how did HMRC sort out the problem of puppy farms and collect £5.1m? good research.

    I think you could be on the horizon for them and/or the police if they have time. Someone will report you to the authorities and I would love to be a fly on the wall when you are faced with difficult questions and evidence of you dubious activities.

    You are truly a rogue landlord.

     
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    Said it before say it again.
    We are professional LL, we have to run Our business in a profitable manner, we have to be in control All the time. We and only We decide who We want as a tenant in Our property.
    We have better and stricter rules than the stupid cluseless councils and government bods.
    We carry out Regular Inspections, councils LLS DONT.
    We have yearly Gas Certs, Elec Reports. We provide Damp and Mould fact fines and Legionnaires fact fine.
    We deal with Any problem within 24 hours. The councils Dont.We recieve are rent on Due Date if not phone visit within the hour, if no responce we ask them to leave. If antisocial we ask them to leave. Nobody gets a TA without ID,bank statements, wage slips, employer details, previous addresses, LL ref, guarantor full details and ID. If forgeign more deposit is taken or 6 months or 12 months rent taken.
    Keep it simple keep a tight ship, be accessable 24 hours 365 days of the year. Keep it simple.in over 35 years still work.

  • Paul Barrett

    Yep can you imagine 10 tenants stating they would like to take the property.
    But that they are only prepared to pay 5 weeks deposit and for the LL to pay their referencing!!!
    LL says bye bye
    But before they leave LL advises that if any of them provide a TRP they will be first in the queue for a tenancy.
    Even more so if their TRP qualifies them for RGI.
    Gradually tenants will wise up and understand that to make themselves a good prospect they will need a TRP to get ahead of other tenants.

  • Paul Barrett

    @p Robinson
    Dear me nothing I suggest is fraud.
    There is nothing to prevent a 2nd AST being issued for less rent than the 1st AST.
    What isn't allowed is for an AST for the first months rent to be more than the following months rent.
    The legislation does not prohibit a following AST from being for less monthly rent.
    Don't accuse me of fraud when you haven't a clue what you are talking about.
    LL are perfectly entitled to change the rent everytime an AST is issued
    Doesn't always increase!!
    There is no legislation that prevents a LL giving outgoing tenants a 'goodwill gesture '.
    Stupid legislation is always easy to beat.
    Banning 6 month AST will make it more difficult though.
    So it might be that rents will have to take account of the 3 weeks deposit not allowed.
    Whatever happens tenants will pay
    Rogue LL you idiot.
    Don't make me laugh
    ALL of my tenants apart from the 5 I evicted for rent default think I'm great.
    So much so that I have tenants from years ago returning to me.
    I haven't need to pay for sourcing tenants for nearly 8 years.
    COS I'm that good as a LL! !
    I just have to put the word out and I'm inundated with prospective tenants.
    If I was a rogue LL do you imagine that would happen! ?
    You know nothing.
    Back in your box you silly man

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    What are people thinking about referencing? Obviously agents were previously charging their tenants for admin/referencing costs, but now that can't happen ... A cheap reference will give you an answer, but it’s not based on all the facts is it? Same with insurance, how are you protecting your landlords? or protecting yourself from the charges but keeping your prospective tenants happy?

  • Paul Barrett

    If I used a LA I would refuse to pay for any referencing.
    I would require the LA to request the tenant provides a TRP.
    If the LA refused I wouldn't do business with them.
    There is no need for ANY LA or LL to pay for referencing.
    You just advise the tenant prospects that unless they have a TRP no more than 3 months old they will not be considered as tenant prospects.
    Of course a LA will advise how they may purchase their own TRP but that will belong to the tenant to do with as they wish.
    A TRP is the most effective referencing product out there and is quite cheap when you consider that the tenant only needs one of them.
    Of course many LA will offer guidance as to how a tenant may achieve a TRP.
    But the main point here is that it will NOT be a REQUIREMENT of the LA or LL for the tenant to show them a TRP.
    If they choose not to show it then they simply won't be considered by LA and LL.
    Tenants will soon wise up that the TRP is the way to go to beat other tenants to tenancies.
    Even better if the TRP qualifies them for RGI.
    The LA and LL will bite the tenants' arm off!!!

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    And they can charge the tenants? Surly not from 1 June 2019?

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    I think that what Paul is saying is that a tenant can pay for his or her own passport and then produce it when required.
    The tenant has no obligation to pay for one, but if he chooses not to then he or she would not be considered.
    Paul is not actually charging the tenant for the passport so that would be ok.

     
  • Paul Barrett

    @John hughes

    Exactly you put it so much better than me!
    Of course the big problem will be that vast numbers of tenants will not be able or unwilling to supply information to formulate a TRP.
    If a LA waits for tenant applicants to bring a TRP they won't have many tenants!
    Not an issue for self-managing LL.
    Those with a TRP which also qualifies them for RGI will get the best tenancies
    I also believe the TRP will speed up lettings.
    No more waiting for referencing outcomes.
    Instant check of TRP then contact LL.
    I'm sure tenants will realise the efficacy of having a TRP.

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