A day in the life of HF Assist

Last month we reported that Hamilton Fraser, parent company of the Property Redress Scheme (PRS), mydeposits, and Client Money Protect (CMP), had launched a new helpline for letting agents, HF Assist.

In our new ‘Day
in the life of HF Assist’ posts, each week the HF Assist team will highlight
questions from customers and share their answers with us.

In our first Q&A, we discuss the upcoming tenant fee ban
transition deadline, Energy Performance Certificate (EPC) renewals, and tenancy
agreement charges.

Q1: The tenant fee ban
deadline of 31 May 2020 will soon come round. I am working through our
tenancies and making sure we have returned all surplus deposits over the 5 (or
6) week cap.  Is there anything else I
need to be aware of?

Answer:

It’s always good to get ahead of the game.  As well as checking which deposits are over
the cap, be sure to check the history of the tenancy too.

Landlords and letting agents are not obliged to
immediately refund part of a tenancy deposit that is above the cap but which
was paid before 1 June 2019. If a tenant signed a tenancy agreement before 1
June 2019 (and that tenancy is continuing or is a statutory periodic agreement)
then the tenant will be bound by the terms of that contract until it is either
renewed or terminated.

This means that you will be required to refund the deposit
at the end of the tenancy in the usual way and any new tenancy agreed after
this will need to comply with the tenancy deposit cap.

Did you know?

HF Assist Premium subscribers can
download a free template for assured shorthold tenancy agreements. Find out
more here.

HF Assist and mydeposits have
both received calls from landlords and letting agents confused about whether
they need to return
deposits for ongoing tenancies signed before 1 June 2019. We clarify the
situation in our previous post here.
mydeposits’ deposit calculator can help landlords to comply with the Tenant Fees
Act.

Q2: I have a tenancy where the exiting EPC has expired.
Do I need to renew it? The tenant is likely to stay in the property for some
time yet.

Answer:

An
EPC is valid for 10 years after an energy survey is carried out on a property.
It can be used multiple times during this period.

EPCs
have been required by law since 2008 in England and Wales. Since 1 April
2018, all new lets and renewal tenancies must have a minimum energy performance
rating of E on an Energy Performance Certificate. These regulations will come
into effect for all existing tenancies on 1 April 2020.

For
your current tenant:

• There’s no need to
  renew the EPC before 1 April 2020 unless you are going to extend or renew the
  tenancy

• Come 1 April 2020
  you will need to renew the EPC in any event

• If you do start
  looking for new tenants, an EPC needs to be made available to prospective
  tenants as soon as you begin marketing the property

Failure
to provide an EPC when required can result in a £200 fine per dwelling.

Did you know?

The MEES
regulation deadline is soon approaching, giving landlords until the 1 April
2020 to bring their properties to a minimum Energy Performance Certificate
(EPC) rating of grade E.

Find
out more about the new Energy
Performance Certificate: Keeping your property green. And in a previous
LandordZONE post we look at MEES
regulations: What you can do to prepare for the legislation deadline.

Q3:
We have a tenant who is on benefits and as a result their landlord’s insurance
premiums increased by £200 per year.  The
landlord told me last week that he wants me to make the tenant pay him £200 to
continue living at the property. He has told me that this is allowed because
the Tenant Fees Act allows him to change the tenancy agreement (and charge
another £50!).

Answer:

The legislation allows a charge to be made for changing the
tenancy agreement, but only where the reason for making the change is reasonable.
Requiring the tenant to pay an amount of money to continue living at the
property is prohibited under the Act and not, therefore, a reasonable change.

Requesting a prohibited payment is a breach of the Tenant Fees
Act 2019. A breach of the legislation will usually be a civil offence with a
financial penalty of up to £5,000, but if a further breach is committed within
5 years of the imposition of a financial penalty or conviction for a previous
breach this will be a criminal offence. The penalty for the criminal offence,
which is a banning order offence under the Housing and Planning Act 2016, is an
unlimited fine.

Did you know?

HF Assist can offer
expert advice on tenancy agreement processes and what you can and can’t charge
fees for.

The HF Assist helpline provides expert guidance and information from call handlers who have
both legal and lettings experience. The service can be accessed by phone,
email, and live chat during business hours. Upgrading to a HF Assist Premium
subscription provides a 24/7 legal helpline covering all types of legal issues
related to a letting agent’s business plus other useful extras.

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