Understanding the Proposed Tenants Bill

The Tenants Bill, currently going through Parliament, aims to limit the charges landlords and letting agents can impose on tenants. If passed, only rent, capped deposits (at five weeks' rent), utility and council tax bills, tenancy changes or early terminations, and costs related to tenant-caused damages (such as lost keys) can be charged.

Making Renting Fairer and More Transparent

The government’s goal is to prevent tenants from being burdened with unexpected costs and to create a more transparent rental market. At Ringley, we support measures that make renting and moving more affordable while eliminating excessive charges. Some tenants have been charged up to £200 for referencing and tenancy fees, which can be exploitative. However, it is also important to recognize legitimate expenses that letting agents bear.

The Role of Referencing Fees

Tenant referencing is a crucial process that ensures landlords have reliable tenants. It involves verifying salary proof, rental history, and general suitability. While some landlords question these costs, referencing is a necessary safeguard. If the government seeks to abolish referencing fees, it should provide a free, centralised database with access to relevant records, including:

• PAYE tax records (to verify earnings)
• CRB checks (to identify past criminal activity)
• Housing Act court cases (to check eviction history)
• Land Registry data (to confirm guarantors)
• Tenancy Deposit Service disputes (to assess past tenant behavior)

The Need for a Tenant Review System

In addition to formal records, tenants who have previously caused significant damage or unpaid debts could move from property to property without warning to future landlords. A tenant review system—where landlords can leave anonymous feedback—could help mitigate this risk. Additionally, the government should mandate credit agencies to share credit check data with landlords and letting agents.

The Debate on Tenancy Fees

Many letting agents reuse the same tenancy agreement, making the administrative costs minimal. However, at Ringley, we use legal software that updates tenancy agreements in line with new laws, ensuring compliance. This process involves setting up tenancy details, rent collection schedules, and conducting identity verification, particularly for non-UK residents who require "right to rent" checks. Failure to perform these checks can lead to fines for landlords.

Technology Can Reduce Costs

Innovative solutions like PlanetRent allow agents to complete the entire rental process—including offers, referencing, payments, e-signatures, and compliance—for just £12 per tenancy. By adopting such tools, agencies can cut administrative costs and streamline operations. If a landlord prefers using their own agreement, they should cover any additional administrative expenses.

As the Tenants Bill progresses through Parliament, careful consideration is needed to differentiate between justified and unjustified charges. A balanced approach will ensure fairness for both tenants and landlords.