The Tenant Fees Act 2019 has now received Royal Assent in the House of Lords and officially passed into law...
The tenant fee ban which was expected to come in on the 1st April 2019 has been delayed until the 1st June 2019. This has been widely publicised, but a more important implication of the new legislation is receiving virtually no coverage in the media. For years it has been the industry norm and our practice to collect 6 weeks dilapidations deposit as standard. After the 1st June 2019 these deposits will be capped at a maximum of 5 weeks. In some cases, landlords will have to refund a part of the deposit to the tenant reducing the total deposit to the equivalent of 5 weeks rent.
At Martyn Gerrard we offer a solution, which will allow you to continue benefiting from 6 weeks cover whilst remaining fully compliant with the new law. Our deposit replacement scheme can be offered as an option to your tenants which will unlock the deposit currently tied up in a deposit protection scheme. This scheme is only available to tenants who pass a strict assessment and is subject to conditions.
Since piloting the scheme in October 2017 the majority of qualifying landlords now offer this scheme to their tenants and more than half of our eligible tenancies are now benefiting from this alternative.
We are told that the main reasons our landlords have chosen to offer this scheme to our tenants is that they are able to secure a higher rent, reduce void periods as well as cut out most of the hassle associated with registering and protecting deposits.
If you are not yet benefiting from everything Martyn Gerrard has to offer, pre-empt the tenant fee ban by calling our lettings director Greg Tsuman now on 0208 445 7725. We are here to help you find the right solution!