Unless you have been hiding under a rock somewhere you will have read or seen somewhere the Queens Speech that outlined changes within Lettings. One thing no one expected was the inclusion of Deposits, which was a big surprise.
So the Draft Tenants Fees Bill set to be introduced Spring 2018 states, “a cap on holding deposits at no more than one week’s rent and the security deposits that tenants leave with landlords, or their letting agents will be capped at a maximum of one month’s rent”. Sounds straight forward? However, for some tenants making an application for a rental property this normally wouldn’t be an issue, especially if they have had a good checkable history with Landlords/Agents which you would consider them low risk tenants. But what about those tenants with a less than great history, those who have poor credit history or low income? Usually a Landlord or Agent would take an increased deposit as a condition of the tenancy as an extra security blanket should anything get difficult. Would those tenants be all back of the queue when it comes to selecting tenants? Only time will tell!
What about those tenants who have pets? Normally a Landlord or Agent will have a separate Pet Contract to cover any damage caused with an extra deposit to cover this. Again would those tenants be in the mix as they once may have been in the selection process for a property? From a protection point of view I wouldn’t think so.
So, for the time being its food for thought in what is proposed. Lets all hope the Draft Bill becomes clearer and fairer for all.
If you’re a landlord looking for a little help with any of the changes happening or even looking to enlist the expertise of an industry leading lettings specialist then feel free to get in touch. Coventry 02476 222441 email@example.com @GodivaEstates www.godivaestates.co.uk.
For more on the Coventry Property Market Blog please click here