“If the landlord does not refund this deposit at the beginning of the rental or if you decide not to accept the rental, it becomes an illegal fee, also known as a premium.” In Scotland, the ban on rental fees has been in place since 1 December 2017 and is subject to slightly different rules. 60. You must ensure that you treat all private information sensitively and in accordance with legal requirements such as data protection law. In England, the fee ban will come into effect this Saturday, June 1, while in Wales, a ban will be implemented on September 1. He said: “If the tenant had no choice and had to pay that referral fee to get the lease, then it would be an illegal premium. Three months later, the Scottish Government decided that existing legislation on rental laws was not clear enough about additional charges such as reference checks, credit checks and inventory fees. “Unlike holding deposits in England, which the agent can retain in certain circumstances, in Scotland because the concept is technically prohibited when the tenant moves, the agent has to return all the money.” 59. If you have engaged a third party to check references or if you ask potential tenants to use a specific third party, a third party`s referral service cannot charge a fee to the tenant (see also paragraphs 47 to 49 on fee collection). Shelter Scotland director Graeme Brown said rental agents continued to charge “illegal” fees.
The Scottish Government clarified the rental laws in 2012, stating that all charges beyond rent and a refundable deposit are illegal. “The result, however, is that many properties are withdrawn from the market for a few weeks and then taken back as soon as the deposit is withdrawn. 62. When preparing a lease on behalf of the landlord, you must ensure that it meets all relevant legal requirements and contains all relevant information (such as the name and address of the landlord or the name and address of the landlord and the identity of the landlord); Type; the duration of the rental, if it is a guaranteed short-term rental; the amount of rent and deposit and how and when they are paid; if it is a multi-occupancy rental house; as well as any other responsibilities for the maintenance of the property, such as the maintenance of the common areas and the cleaning required at the end of the lease); and any specially negotiated clause (p.B if there will be inspections or visits by landlords or agents) agreed between the landlord and the potential tenant. The agreement must also include the owner`s registration number. Citizens Advice Scotland advises tenants: “A private landlord or rental agency may require a deposit before signing a lease. It is sometimes referred to as “key money” or “security deposit”. The practice of charging additional rental fees was made illegal in Scotland in 2012, but many companies ignored this change. unless the landlord has acted in such a way that it would be inappropriate to expect a tenant to enter into a lease with the landlord and subject to the prohibition on tenant fees. Landlords may indicate that this deposit or fee is intended to cover the cost of checking credit reports or other administrative tasks and that it will not be reimbursed. This is illegal and tenants should not pay extra money. Under the TFB Act, would it be to add a question to an application form to ask the applicant to confirm that he or she has not applied for another property and to pay a detention fee at the same time? If it turns out that they have done so and they are withdrawing, will they have made a false statement about the application, so that they will lose the costs of detention? Landlord – If the landlord or rental agent does not own a property after receiving a security deposit or decides to rent it out to someone else after verification, it must be returned to the prospective tenant in its entirety.
You are not allowed to leave multiple deposits for the same property. Accommodation can be advertised in multiple locations, which may result in double bookings. Therefore, tenants should check if the property is advertised elsewhere before agreeing to pay a deposit. If filing a simple procedural claim does not prompt the rental agency to reimburse your costs, your case will be taken to court. “This could technically be considered an illegal bonus under the law.” Tenants – If a tenant decides to withdraw from a lease before the contracts are signed, the landlord or rental agent is sometimes entitled to withhold part or all of the deposit. It depends on the conditions of the operating insert. For example, a duration of the holding deposit could mean that it is not refundable. However, the owner or manager should only withhold part of the deposit to cover their administrative costs and be unfair.
Is it legal to charge a deposit if it can be returned? However, it limits the holding of deposits to the equivalent of one week`s rent. There is nothing in the new law that prevents tenants from depositing for multiple properties – but unlike Scottish tenants, they risk losing the money if they withdraw. As of April 1, 2019, any down payment made by a rental agent must be protected by joining a customer`s money protection system. You can keep all or part of the deposit if a tenant: Some rental brokers in Scotland still charge illegal fees to private tenants, a BBC investigation has revealed. If the deposit is not kept in an approved rent deposit system, you can file a civil action to recover it. The landlord could be ordered to pay compensation of up to three times the amount of the bond. Agents who fear the rent ban could cause tenants to make multiple applications have been warned that this is exactly what is happening in Scotland. While the inclusion of deposits will be allowed in England, a number of commentators have suggested that agents should consider whether it will still make sense to do so. Describe the amount of the deposit (legally, it can not be more than two months` rent) Emma was charged the fees after the clarification of the law. She said she knew the fees could have been illegal at the time – but she didn`t want to lose the apartment. In England, agents are allowed to take deposits of up to a week`s rent from Saturday.
You can only leave one deposit for one property at a time and are not allowed to leave multiple deposits. Agents should also stop promoting a property once a deposit has been paid. If you decide to withhold all or part of your deposit, you must explain in writing why you will withhold a tenant`s deposit within 7 days of the decision not to rent it if it is before the expiry of the deadline for the contract, or within 7 days of the expiry of the “Contract Deadline”, otherwise you will lose the right to: withhold his deposit and must return it to them. You must inform the tenant in writing of the reason why you are withholding their deposit. You may have to go to your local sheriff`s court to recover your costs – but don`t let that discourage you (Photo: Shutterstock) Liam King, chairman of the Student Representative Council at the University of Glasgow, told BBC Scotland they had seen almost 50 cases related to rental fees over the past year. The maximum you can ask a tenant for is a weekly rent as a deposit. If you have more than one tenant and they are all jointly responsible for the rent, you should give them the amount they all own together. For example, if two tenants pay £200 a week, you can pay them a deposit of £200, not £200 per person.
You can ask the question, but whether you ask it or not, if the tenant withdraws from the property, you can withhold the entire deposit. In general, the deposit is either credited to the deposit (so that it is deducted from the total amount of the deposit to be paid) or refunded at the beginning of the rental. If the deposit is paid in the deposit, it must be protected with the rest of the deposit in an appropriate system. .
