How flatfair can help you prepare for and beat the Tenant Fee Ban

Earlier this month, ARLA announced its launch of a new tenant fees toolkit designed to help agents, landlords and tenants alike understand all the aspects of the Tenant Fee ban, which is set to take effect on June 1st 2019. This comprises a handy list of factsheets, templates and guides which are well worth a look.

However, there’s no doubt that the upcoming deposit cap is a source of particular interest (and, in some cases, anxiety) for agents and landlords alike. Under the new rules, there will be a five-week deposit cap applied to any properties which command under £50,000 a year in residential rent, and a six-week cap for properties whose rent exceeds the £50,000 threshold.

It’s worth remembering that this cap will only apply if and when tenants renew a fixed term agreement after the Tenant Fee ban comes into effect. Until that point, landlords and agents don’t need to take any action; but if existing tenants do choose to renew a contract after June 2019, their agent or landlord will need to refund the balance above the new cap from their original deposit monies. Likewise, the cap will apply to any new tenancies that start after that date.

This cap has, unsurprisingly, left many landlords and agents worried about whether they’ll have adequate protection against rent arrears and damages that might be sustained throughout the course of the tenancy. At the same time, while it may seem like a bonus for tenants to pay one week’s less deposit upfront, landlords are going to be increasingly wary of who they let to, because they’re concerned about how their property may be treated, and agents may, therefore, find themselves turning away tenants they’d otherwise accept. Doesn’t sound great, does it?

With flatfair, tenants pay no upfront deposit whatsoever – instead, they pay a small, one-off membership fee to flatfair, and then simply pay for any unpaid rent or damages when their tenancy comes to an end. Landlords’ properties are covered instantly, and instead of being restricted to a mere five weeks’ cover under the Tenant Fee ban, they can benefit from up to 12 weeks’ worth of protection, plus free recovery for any additional debt that may need to be pursued. Agents who advertise properties deposit-free see them snapped up faster than their counterparts, and everyone has a transparent view of claims via the online flatfair portal.

“We spend a lot of time talking to our partners and their agents, and we know how anxious landlords are feeling about the upcoming deposit cap,” says Victoria Hardy, flatfair’s Partnership Development Manager. “By offering up to twelve weeks’ protection for our landlords, flatfair is able to provide them with some much-needed peace of mind, while tenants can enjoy greater financial freedom from the start of their tenancy, and they’re incentivised to treat their rented homes with care.”

If you’d like to find out more about how flatfair can help you prepare for, and beat, the Tenant Fee ban, get in touch at support@flatfair.co.uk or chat to us via our website.