Landlords and letting agents urged to make sure they are ready for tenant fees ban

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Tenancy Deposit Scheme (TDS) is warning that landlords and agents in England should now be ready for the ban on tenant fees that comes into place at the end of this week, on 01 June.

The UK’s largest tenancy deposit protection scheme by the value of deposits protected last month launched DepositCap.Com, an online resource to provide information to those who will be affected by the new legislation.

The resource centre offers examples of how the Tenant Fees Ban could affect tenancy deposit protection (TDP), providing landlords and letting agents with the information that they need to avoid any breach of the new rules and outlining how new systems put in place by TDS makes it easy for members to adjust the deposit value accordingly, to comply with legislation.

From 01 June this year, on any new or renewed AST (Assured Shorthold Tenancy), the tenancy deposit will be capped at five weeks’ rent where the annual rent is less than £50,000 and six weeks’ rent where the annual rent is £50,000 or more.

‘The number of visits that we’ve had to the website, in only a month, shows that there is a huge appetite for clear information and guidance on how to comply with the changes and avoid possible fines or prosecution,’ said Steve Harriott, chief executive of TDS.

‘Agents and landlords are in real danger of falling foul of the law if they don’t make themselves aware of the implications of the new rules. We’re doing everything we can to make things as easy as possible for everyone to not only understand how the legislation affects them but also enabling agents and landlords a simple online solution to quickly and securely adjust the value of the deposits in-line with the new legislation,’ he explained.

‘Educating our customers and members on their TDP responsibilities is paramount and we strive to make the processes of deposit protection simple, quick and efficient. As the only not for profit tenancy deposit protection scheme, we’re able to invest surpluses back in to the business to create new and innovative technology solutions to support our Custodial and Insured members in this way,’ he added.

David Cox, chief executive of the Association of Residential Letting Agents (ARLA), said it is important for agents to ensure they’ve implemented the correct changes within their business in order to be compliant with the law, and feel confident communicating what the changes mean to clients.

ARLA has a tenant fees toolkit for members which provides fact sheets, legal documents, practical tips, and 18 short videos to help explain the ban. He warned that breaching the ban can result in a penalty of up to £5,000, and further breaches of the ban will either incur a £30,000 penalty or be prosecuted as a criminal offence with an unlimited fine and a Banning Order.

‘Therefore, it’s vital members ensure they have everything in place to be compliant as time is running out,’ he added.