Charter for rent cheats

by Property 118

8:51 AM, 22nd March 2018
About 7 months ago

Charter for rent cheats

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Charter for rent cheats

PLANS to cap security deposits for private rented housing to six weeks rent risk creating a charter for rent cheats warns the country’s leading landlord body.

Research by the Residential Landlords Association’s (RLA) has found that 40% of private landlords have faced tenants not paying their final month’s rent in the past three years.

The new cap is proposed in the Government’s Draft Tenant Fees Bill and the RLA is calling for this to be increased to eight weeks to cover the costs if the final month’s rent is not paid and to ensure there are sufficient extra funds to deal with any major problems some tenants leave behind.

The RLA is also warning that the Bill risks becoming a missed opportunity to improve the position of tenants. It is calling for proposals to enable tenants to transfer deposits from one home to another rather than having to raise fresh funds each time they move as they wait for their last deposit to be paid back.

It also wants the tenancy deposit process to be brought into the 21st Century by enabling papers confirming that deposits have been protected to be sent to tenants electronically which currently cannot happen.

The Office for Budget Responsibility has again warned that plans to ban letting fees paid by tenants could lead to rent rises as a result of fees being passed on

Commenting, David Smith, the Policy Director for the RLA said: “Ministers need to address the problem of tenants failing to pay rent every bit as strongly as rogue landlords. It is not unreasonable that landlords should have the security to know that funds are available to cover the unacceptable practice of those tenants who do not pay their rent at the end of the tenancy and, in some case, leave the property in an unacceptable state.

“In a quest for quick popularity, the Government’s plans risk becoming a missed opportunity for fundamental reforms to improve tenants’ ability to access rented housing.”

The research findings are contained within a report by the Residential Landlord Association’s (RLA) research exchange, PEARL. Almost 3,300 landlords responded to its questions.



Comments

moneymanager

9:27 AM, 22nd March 2018
About 7 months ago

"It is calling for proposals to enable tenants to transfer deposits from one home to another rather than having to raise fresh funds each time they move as they wait for their last deposit to be paid back".
Not sure how that is supposed to work, by definition a deposit claim is unlikely to be finalised before moveout even if uncontested, how then can the same deposit be used for a follow on property?

Dr Rosalind Beck

9:34 AM, 22nd March 2018
About 7 months ago

I don't know if the phrase 'charter for rent cheats' is the RLA's or yours, Neil, but it's excellent. It gives us an alternative to 'rogue tenants'. We should start using the expression 'rent cheats' from now on (just like 'benefit cheats' caught on). I also agree with the point in the previous comments regarding how the deposits could be transferred over - the time scales are wrong. Eg. tenancy start date for our new tenant is 1st of July and we take a deposit even, say, 1st of February if it's for students, or eg. 15th of June if not. How could we get the tenant's deposit on their current home transferred over weeks before the start of the tenancy? We are not going to wait until the 1st of July as the tenant might then just not turn up, having lined up several possibilities.

Rod

10:02 AM, 22nd March 2018
About 7 months ago

I also think it would be a good idea that when tenants leave they should be made to give a 'true' forwarding address by - law - or face heavy fines + CCJ against them. So many tenants vanish owing money everywhere including council tax which the government would be glad of right now! This shall be going into the housing ministers suggestions box. Please do likewise.

AA

10:37 AM, 22nd March 2018
About 7 months ago

Reply to the comment left by Dr Rosalind Beck at 22/03/2018 - 09:34"Rent cheats"? I prefer "Society Freeloaders" as these people (and I use that word in the loosest of definitions) also cheat utility companies, telecom companies, LA s ...

David Price

11:27 AM, 22nd March 2018
About 7 months ago

Reply to the comment left by Rod at 22/03/2018 - 10:02
Not a CCJ but a criminal record for failing to give a correct forwarding address.
Can I urge landlords to report any errant tenants on Tenant Referencing, https://www.landlordreferencing.co.uk It's free and quick.

Gromit

15:14 PM, 22nd March 2018
About 7 months ago

Something like "Reposit" may become an alternative to a deposit. I know roughly how it works but I don't know if once the Tenants have paid the 1 weeks premium that they then have any incentive to ensure a claim is not made against their policy (i.e. an increased premium for being a higher risk).

Michael Barnes

23:34 PM, 22nd March 2018
About 7 months ago

Restriction on deposits should be based on the units of the rental period:
- If rent is paid weekly, then a multiple of weeks;
- If rent is paid monthly, then a multiple of months.
Working out a week's rent on a monthly period will be a pain and subject to rounding errors.

David Price

7:38 AM, 23rd March 2018
About 7 months ago

Reply to the comment left by Michael Barnes at 22/03/2018 - 23:34
Rounding errors, great, lets fine the erring landlord an enormous sum - say a minimum of £100,000 - for even a fraction of a penny over or under. And let us not forget substantial compensation for the poor downtrodden tenant.

AA

18:40 PM, 23rd March 2018
About 7 months ago

Just read this article again - where does it say you cannot send the deposit paperwork electronically? There was a high court ruling ( I need to dig up the case) where the judge ruled that the sender had to have their name on the body of the lease to affirm who sent it, and the respondent had to confirm that they had received the email allowing the determination that documents had been served.

Ed Duncan

10:21 AM, 24th March 2018
About 7 months ago

with 70 flats I see a constant level of damage and unclean properties , let alone the final months rent not being paid
- solution has been to factor this into rent being charged , i now charge 40% more than 2 years ago
- courts and chasing ex-tenants impossible
Even our courts with fines are due billions

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