Agents warned over illegality in taking tenants’ money too early

Agents in student cities and towns where it is commonplace for agreements to be signed up to ten months in advance, with deposits, holding fees, referencing fees and, commonly, the first month’s rent taken, have been warned that they could be breaking the law.
This is because the 2004 Housing Act says that all and any money paid in advance of a tenancy and which could or should be returned to the tenant is defined as a deposit.

Trade bodies and schemes – including ARLA, NALS and SAFEagent – have been asked to issue guidance as a matter of urgency.

As the law stands, not only should all the money taken in advance by agents be protected as a deposit, but the Prescribed Information should also be issued.

Read the full story at lettingagenttoday.co.uk

RentPro Property Management Software allows you to keep track of all monies received and lodged with tenancy deposit schemes, helping you to stay on the right side of the law.

You may also like...