Rights As A Tenant In A Private Rented Property
A tenancy agreement sets out the rights and responsibilities between the landlord and tenants. In the unfortunate event where an issue arises then the tenants should refer to the tenancy agreement. Tenants have additional rights which are not always set out in the tenancy agreement. To give an example, the House in Multiple Occupation (HMO) licensing.
We have set out below the key points that tenants should be aware of when renting a property.
Additional fees
The Tenant Fees Act came into force on 1st June 2019 and the centre of this rule is that it prevents landlords from charging tenants with extortionate fees. The landlords are allowed to charge the tenants rent, tenancy deposit, and or a holding deposit.
Under the Tenant Fees Act, landlords are no longer allowed to charge tenants the cost of their own references or police checks, general administration fees, or cleaning fee. Landlords who charge fees that fall outside of the Tenant Fees Act may be liable to pay a fine of £5,000 however if the landlord repeats the breach, then this could lead to a criminal charge or a fine of £30,000.
However, the landlord can charge certain fees provided that it is written into the tenancy agreement, these are set out below:
- Late Rent Fees
Landlords can charge fees for rent payments that are due over two weeks. The fees can be charged up to 3% plus the Bank of England base interest rate.
- Default Fees
This includes the tenant losing a key or damaging the property. The tenant can only be charged a reasonable amount as long as the evidence of the cost can be provided.
- Changes to Tenancy Fees
Landlords can charge up to £50 for making changes to the terms of the tenancy agreement. This can include changing a tenant’s name or allowing a pet.
Disrepair
Under section 11 of the Landlord and Tenant Act 1985, landlords have the obligation to keep
the property in a habitable state for the tenants to reside in. This includes heating, hot water, access to power supply, water, etc.
These repair obligations cannot be changed by any terms written into the tenancy agreement and landlords cannot charge tenants for any repairs that fall under their mandatory obligations.
However, tenants would usually be responsible for the maintenance of the property. This includes the general upkeep such as changing the lights, unclogging sinks, gardening, and cleaning.
Should a tenant experience any disrepair issues such as mould, no heating, no hot water, etc then they should first report this to the landlord immediately.
If the landlord refuses to carry out the repair works then the tenant has various options available to them such as reporting to the local council and or issuing proceedings against the landlord.
House in Multiple Occupation License
The Housing Act regulations ruled that an HMO license is required for any house or flat that is occupied by five or more people who are not all related and live in the property as their main home. Landlords are therefore obliged to apply for a license application at the local council if the property needs licensing.
Ignoring the rules would result in the landlords paying a heavy price. There would be a risk of being prosecuted by the council and if found guilty landlords could get a criminal record, and be fined an unlimited amount. Alternatively, tenants can apply for a Rent Repayment Order and the landlord may have to repay up to 12 months of rental income.
Deposit
Deposits were collected as part of the renting process and landlords are obliged to pay the tenants’ deposits into a deposit protection scheme. This deposit protection was introduced on 6 April 2007 as part of the Housing Act 2004 and these protection schemes offer a free service to help resolve deposit disputes between the landlords and tenants.
When a deposit was not protected under a scheme and no further information was provided by the landlord, tenants can apply to the County Court for an order that the landlord returns the deposit back or protect it under one of the tenancy deposit protection schemes.
There are rules on what costs can be deducted from the deposit. And the landlord cannot, in general, charge for the costs of maintaining the wear and tear of the property. The usual costs can include deductions for (1) damage to the property and missing or broken items, (2) cleaning fees, and (3) unpaid rent or bills.
If tenants disagree with how the deposit is returned, or the tenant does not agree with some of the costs that landlords have taken out of it, tenants must ask the landlord for a breakdown of the specific costs which were taken out of the deposit.
In the case where an agreement could not be reached between the landlord and tenant, the parties can propose to use the free alternative dispute resolution service offered by the tenancy deposit scheme.
Under the alternative dispute resolution service, the parties are required to accept the decision made and will not be able to apply the decision to the courts. If on the contrary the landlord or tenant does not agree to use the dispute resolution service, then the dispute will usually go to the County Court.
If you require assistance in relation to private renting disputes, or you would like to learn more about the rights and obligations shared between landlords and tenants in private properties, please feel free to contact us and we can discuss and advise on your best way forward.