Landlords Higher Bills To Join Government Scheme
Fees for joining the government scheme Redress and landlord database could be “significantly higher” following further amendments to the Renters’ Rights Bill.
The government scheme and database calculations have been updated to include the expected cost of enforcing the Act and running them. According to the government’s previous impact assessment, the estimated cost for joining the scheme is an average £6 per landlord per property, with a database registration fee of £28.58 per property for three years.
The NRLA has already raised concerns that these figures are an under-estimation and now says it expects the fees to be “significantly higher than the amount suggested originally”.
Breaches
As well as plans to prevent landlords from asking for more than a month’s rent in advance, other new amendments which will be discussed during the report stage and third reading in the Commons next Tuesday include new breaches of the Tenant Fee Ban, preventing a landlord or letting agent to invite, encourage or accept offers of payments of rent above the permitted amount before the tenancy starts.
The new student ground (4a) has been amended with an additional restriction put in that the tenancy must be agreed less than six months before the start date of the tenancy, effectively banning student landlords from agreeing tenancies more than six months from the move in date.
The Bill will also limit guarantor liability across the board, so guarantors would not be liable for any rent due following the death of a tenant. Amendments also include proposals allowing superior landlords to be pursued for rent repayment orders – even if they have received no rent.
Exempt
Under the new plans, if they are to be exempt from the assured tenancy regime, fixed term tenancies must be for a minimum period of 21 years or more, instead of the current seven years.
Finally, there is an amendment outlining how landlords may not rely on terms of the contract as the sole basis of any defence against an HMO licensing offence. For example, a clause in the tenancy that prohibits tenants from subletting would not be sufficient on its own if the tenant had sublet, turned the property into an HMO, and the landlord had passively accepted it.
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