Why it's not all doom and gloom for Norwich landlords
PUBLISHED: 17:34 04 April 2019
Despite Brexit and a new tenant fees ban looming, it’s not all bad news for local landlords.
The uncertainty of Brexit and upcoming tenant fees ban are understandably causing landlords to be anxious and, although Norwich offers a good investment opportunity with a growing student population, landlords have another hurdle to get over as the law is about to change. But Jenna Veneziani, Lettingsupermarket director for Norfolk, states that it’s not “all doom and gloom for landlords” and urges them to seek alternative solutions.
The Tenant Fees Act 2019 reached royal assent on February 12, 2019 and the new law will be introduced on June 1, 2019. According to Citizens Advice, tenants pay an average of £400 in administration fees per rental property. These fees are also known as a document charge to renew a tenancy agreement, referencing or credit check fees.
From June 1, all new tenancies will no longer pay administration fees ahead of moving into a rental property and will cap deposits at up to five weeks’ rent; tenants can only be charged the rent, a refundable deposit, or a maximum charge of £50 to make changes to the tenancy when requested by the tenant. Additionally, if tenants wish to terminate their contract early, they will be required to pay the rent for the duration of the contract’s fixed term.
Although initially this is good news for the tenant, unfortunately this means the majority of letting agencies will charge administration fees direct to the landlord.
After the government recently introduced higher stamp duty costs and is phasing out mortgage tax relief, landlords are feeling the pressures, with many opting out of the Buy-To-Let market in 2018. Tenants are concerned landlords will increase rental prices in order to recover costs. However, there is an alternative solution available for landlords to help alleviate costs and increase savings – Lettingsupermarket.
Lettingsupermarket is an online-based letting agency and offers substantial savings to landlords. Jenna Veneziani, Lettingsupermarket director for Norfolk, explained that by being an online company, Lettingsupermarket has exceptionally low overhead costs, and these savings are passed down to landlords. The part- managed package is just 3.6pc (including VAT) and full management packages are 6pc (including VAT). Lettingsupermarket also offer HMO management packages for £29.99 (including VAT) per room.
With other incentives such as Lettingsupermarket’s ‘No Deposit Option’ to help more tenants get in on the rental market, there continues to be strong demand for rental properties and savings available to landlords, regardless of Brexit and the tenant fees ban.
Contact Lettingsupermarket today to see how much it can save you, on 0800 098 8844, or via www.lettingsupermarket.com/norwich
This column is sponsored by Lettingsupermarket.