Landlords in wales have a new set of rules to comply with when moving in tenants.
From 28 February 2020, new regulations demand landlords give tenants a list of information before they ask for a holding deposit.
The regulations were due to start from December 13 last year, but were delayed by the Welsh Government due to concerns over landlords having to give a prospective tenant their home address before any money changed hands.
The government changed the new rules to allow landlords to give contact details rather than their home address.
The information can be given by hand as printed copies or electronically if consent is obtained first.
The following information must be provided:
- Holding deposit amount
- Address of the rented property relating to the holding deposit
- If a holding deposit is paid to a landlord or letting agent, their name and contact details
- Term of the tenancy agreement
- Proposed move-in date
- Rental amount
- Rental period
- Details of any contractual terms not included as standard in the rental agreement
- Security deposit amount
- Any contractual terms relating to a guarantor
- Details of any reference checks the tenant can expect
- A list of information the tenant may need to provide
In Wales, any holding deposit must be returned within 15 days of payment, unless the landlord/letting agent has agreed another date with the prospective tenant in writing.
If the tenant pulls out of the rental before the 15 days (or other agreed date), the holding deposit can be retained as long as the information has been provided. Otherwise, it must be repaid within seven days.
If an agreement is entered into, the holding deposit may be offset against a security deposit or first month’s rent.
Under the Renting Homes (Fees Etc.) (Wales) Act 2019, a landlord or letting agent can only take one holding deposit from a prospective tenant at a time.