Tenancy Agreements AST Tenancy Info - PIMS

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the essential changes arising from the Tenant Fees Ban


- Becareful if renewing a Tenancy for you become subject to new laws - See PIMS Tips restoring


- Holding Fee Max one weeks lease - Very Strict compliance rules about return and deductions. see new Holding Deposit Form.


- Ensure Your Tenancy Application Form Tenant Fee Ban and GDPR certified or download PIMS Tenancy Application Form [Tenant Fees Compliant and Includes GDPR).
- Deposits now capped 5 weeks where lease listed below ₤ 50K year 6 weeks if above


- Admin Fees Abolished.
- Defined items 'Permitted Payments" a Proprietor can charge a Tenant


- Maximum charges for late rent payments, replacing Keys and Locks and Maximum charges for changing an Occupancy.
- If you stop working to comply you are restricted from serving an Area 21 Notice to end the Tenancy, compensation the Tenant and be exposed to fines of as much as ₤ 30,000 or criminal conviction


Examples of clauses REVISED IN the PIMS Tenancy Agreement.


Note where the rent is payable regular monthly increase the lease by 12 then divided by 52. Then multiply the weekly figure by FIVE - please ensure you round down calculations. So do not exceed the optimal deposit of FIVE weeks by even a penny. ONLY 6 weeks where the rent exceeds ₤ 50,000 per year


What an Occupant can be charge needs to adhere to Permitted Charges Legislation


BILLS ARE DEFINED as Utilities, Television Licence and Communication Services Unless otherwise agreed in composing by the Landlord, the Tenant must organize to be billed for energies charges for the residential or commercial property [electrical energy, gas or other fuel, or water or sewerage] and pay the tv licence charge for the residential or commercial property. The Tenant should arrange to be billed for interaction services implying a service allowing any of the following to be used- (a) a telephone besides a mobile telephone; (b) the internet; (c) cable tv; (d) satellite television. Where the Landlord provides such utilities or services the Landlord will only charge sensible costs incurred by the proprietor for or in connection with the provision of the utility or service. The Tenant agrees to remain responsible for these products after the Expiry of this Agreement up until the tenancy has legally ended. Where the Tenant enables, either by default of payment or particular instruction, the utility or other services to be cut off, whether during or at the end of the occupancy, the Tenant will be responsible for a Landlords loss and the costs connected with reconnecting or resuming such.


Rent Increase- The Landlord might increase the Rent after the Expiry of the fixed regard to the Tenancy Agreement by giving the Tenant at least one months' notice in composing prior to a Rent Payment Day specifying the amount of the new lease. The Landlord will not increase the Rent during the fixed term of the tenancy.


Clauses charging for non permitted charges expose you to a great


- Previously we were permitted to charge for Rent Arrears Letters, Possession Notices and charges for Tenant non-performance this is no longer the case. The guidelines for what might be charged are now specific there is no uncertainty. These are called allowed charges. Clauses such as check out expenses and MUST pay X for carpets and so on to be cleaned are now illegal


The following clauses for fees are the ONLY ones enabled


Cap on late rent interest now applies The Rent should be paid in advance on the Rent Payment Day specified in this Tenancy Agreement. If the Rent is late by more than 14 days, the Landlord can charge interest at 3% above the Bank of England base rate and interest will be charged until the date full payment is .


Keys must a Tenant request a spare or lose a key or security device giving access to the residential or commercial property and requires a replacement a fee can be charged for such. The Landlord or Agent shall offer evidence in writing to the person liable for the payment to demonstrate that such costs are affordable and not exceeding ₤ 50


- Charges for variation, project or novation of an occupancy, ought to the Tenant request of the Landlord or Agent a variation, project or novation of a tenancy [the replacement of a new contract in place of an old one], the Landlord/Agent reserves the right to charge a cost that is not likely to exceed ₤ 50 however might do so. The Tenant shall be informed in composing a summary of the affordable costs incurred.


IMPORTANT TENANT LIABILITY WHILST PERMITTED CHARGES ARE DEFINED IT DOES NOT REMOVE THE LANDLORDS RIGHT TO SEEK RECOMPENSE FOR THE TENANTS FAILURE TO COMPLY. INCLUSION OF A GENERIC LOSS CLAUSE WITH CAVEAT "failure to carry out or comply with dominating legislation."


- LANDLORDS RIGHT TO RECOVER LOSSES The Tenant will remain accountable for any sensible expenses or losses suffered by the Landlord resulting from conduct of or damage brought on by the Tenant (or anybody they have actually welcomed into the Residential or commercial property or who is allowed to live there). The Landlord reserves the right to look for compensation for legal costs. Such as damage, legal fees, court charges or any other losses resulting from the occupant, occupiers or their visitor's failure to carry out or abide by prevailing legislation.


Additional Key Updates to the PIMS Tenancy Agreement 1st JUNE 2019


Changed to Contractual Periodic "Councils have a routine of trying to pursue property managers for unsettled Tenant council tax for they suggest, a continuation as a periodic is a brand-new agreement and for that reason a minimum of being less than 6 months - whereas a legal regular may offer additional protection to the Landlord.


Added - Tenant grant email them the How to Rent Guide


Why - The Statutory Instrument 2015 No. 1646 The Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015 permits service of How To Rent Guide by email where the tenant has consented [section 3] however take care any section 8 or area 21 notification must still be served upon the house.


Added confirmation service of crucial documents - did you understand should an occupant claim they did not receive a Gas Safety Certificate before commencement of Tenure this can invalidate an eviction utilizing an Area 21 Notice. We have experienced a comparable argument re service of an EPC hence why included. Also added verification tenant received GDPR alert which should have been obtained at Tenancy application stage.


- PIMS Tenancy Application Form now includes GDPR and Ban Tenant Fees Compliant - Download Here


KEYNOTE ESPECIALLY FOR LETTING AGENTS


The Ban on Letting Fees Bill is really rigorous and extremely easy to be tripped up. Not only can a Property manager or Agent be fined, the tenant can block expulsion, a Property manager might pursue their Agent for consequential loss and a Representative can be disallowed from being a Letting Agent. The new Legislation is that severe


Please check out the federal government guidance to Ban on Letting Fees - Which appears problematic however must supply a defence in that you had a sensible expectation the government assistance be valid. See Government Guidance Ban on Letting fees Bill


Please ensure you print an outdated copy for your records for this might be your ONLY defence to reduce direct exposure versus fines


- fine of approximately ₤ 5,000 for a first offense. If you repeat a breach within 5 years of the fine, you may face criminal prosecution or be fined ₤ 5000 approximately ₤ 30,000. Such action may lead to being banned to Let or Manage Properties as may be considered not a fit and correct person under 2004 Housing Act and based on a banning order under section 14 of the Housing Act 2016.


- Individual personnel of the Letting Agents possibly banned if thought about the person was complicit/negligent


See Legislation in Detail


THE PARTIES defined in the Tenancy Agreement


Between - The "Landlord"


The Tenants are hereby notified that notifications (consisting of notices in procedures) need to be served on the Landlord by Tenants at the following address.


- New Landlord see our Tenancy Check List


- The Address of Landlord or Agent MUST remain in England or Wales see Section 48


- If you reside in the facilities utilize Lodger Agreement.
- If renting to a Company usage - Company Tenancy Agreement


And The "Tenant" (note that under an AST a maximum of 4 Tenants is allowed)


- If renting to three or more sharers, in future you might require planning approval found out more.
- No individual under 18 can sign a Tenancy.
- Name all Tenants, in law they shall be "joint and severally responsible" for the Tenancy.
- Ensure all Tenants finish a PIMS Tenancy Application Form [Tenant Fees Compliant and Includes GDPR)


And (if applicable) The "Guarantor" Where there is a Guarantor, include their complete name and address. The signing of this Agreement must then be seen


- It is smarter to always request a Guarantor? If a Renter is in rent financial obligations or triggers damage to the residential or commercial property, usually Landlords DO NOT recuperate their losses unless they have a guarantor see Rent Arrears Guarantors and Tenancy Agreements
- We ask for "Guarantor details" on the Tenancy Application Form INCLUDES GDPR and Tenant fee Ban compliance]

THE RESIDENTIAL OR COMMERCIAL PROPERTY - specified in the Tenancy Agreement


Associating with The "Residential or commercial property" including, if suitable, the Landlord's ownerships listed in the "Inventory"


RESIDENTIAL OR COMMERCIAL PROPERTY ADDRESS


- If renting a room you MUST define Room 1, where not numbered First Floor space front of your house etc


The Residential or commercial property is provided


HELP Furnished or Unfurnished


THE TERM specified in the Tenancy Agreement


For the "Term" of


- Ideally, the first occupancy must be no longer than 6 months, where longer, consider placing a Break Clause - The Tenancy can be no greater than 3 years in Length unless a deed and saw


The "Commencement" - (based on vacant possession being readily available)


- Confirm you have cleared Funds before you provide keys


" Expiry" on (but continuing thereafter as a Contractual Periodic legal routine tenancy indicating the very same rental durations, till notice is provided and vacant possession is gone back to the Landlord)


DATE ENDS


- If 12 months include one year then minus 1 day. So if starts 15th as above would end on the 14th January 2020
- What do I do if the Tenant refuses to leave at the end of the Tenancy Agreement?