The Welsh Government is asking landlords and property professionals for their views about banning tenant fees.
The assembly has already voted to start the ban from September 1.
But the decision about which fees to ban has yet to be finalised.
The government wants help in listing the fees that tenants should pay and the information landlords and letting agents should supply before taking a holding deposit on a property.
The proposal is that default fees should be capped at the actual cost to a landlord or letting agent, but the government is considering if landlords should set their own fees.
“As the government argued during scrutiny of the legislation, it is considered fair that a tenant who is late with their rent, and perhaps sometimes consistently so, should be liable to a late payment charge<” says the consultation document.
“Views from the sector on how to place a limit on such charges which strikes a reasonable balance between all parties are also sought through this consultation.”
The consultation also proposes that tenants should have clear details of the cost of renting a home.
“The intention behind prescribing the information to be provided upfront however, is to prevent a situation where the difference is not as a result of the circumstances of the tenant, but rather due to the agent or landlord not providing the relevant information at the outset,” says the consultation.
“It is considered that information relating to the costs associated with the tenancy and the need for a guarantor should be made clear prior to a holding deposit being taken as these have a significant bearing on a tenant’s ability to take up the tenancy.”
Click here to read the consultation paper
I am a multi property landlord…. I agree with a proposed fee ban… I think the charges are unfair to tenants… (I do not charge my tenant any fees at all)…my concern is a limit on the amount of deposit taken…. landlords should have discretion to set a deposit with regard too many factors… including location, condition of property, whether there are families or pets, how recently the property was refurbished, how competitive the rental market is in the area…. the newly set 5 week for England would not be sufficient for my properties… tenants (almost) routinely neglect to pay the last months rent think the deposit covers it…. leaving just a weeks rent will often not cover costs such as cleaning, clearing personal belongings and furniture items (it happens all the time), replacing batteries and bulbs… clearing rubbish… it just wont be covered
Like many others, I invested in property to create a pension for myself and possibly afford to buy a home for myself. After the credit crunch, it has taken me almost 10 years to get through IVAs, and being left with just a few properties with very little equity. I know no other kind of business, I never put up rents, I do my absolute best for my tenants (as they deserve). After the introduction of the reduction of relief on interest payments, I am once again faced with bankruptcy. At my late age (as with many other professional landlords) this is nothing but cruel, divisive and greedy taxation by the government. The failure of the rental market, pension schemes, increased rents and property prices, and bankruptcy of many honest landlords sits squarely with them. I hope it changes.