Lettings – Client Money Protection Insurance (CMP), Tenant & Referral Fees 2020/ 2021
Letting and management agents are required to display a list of all fees, charges or penalties (however expressed) payable by landlords and tenants for any letting agency or property management service. This includes any additional fees, charges or penalties which may be incurred during a tenancy as well as fees, charges and penalties which are referenced in Tenancy Agreements and in Terms of Business.
The only exceptions are tenancy security deposits (not holding deposits), rent payable to a landlord and fees, charges or penalties which the agent receives from a landlord under a tenancy on behalf of another person.
We must also display our client money protection scheme membership.
Under the Tenant Fee Ban (2019) no fees are payable by tenants and guarantors when entering into an Assured Shorthold Tenancy.
The exemption to this rule is as follows:
1) Tenants must pay interest on any amounts of Rent due and in arrears by in excess of 14 days at the rate of 3% above the Bank of England annual base rate calculated on a day to day basis from the date that the same shall become due until payment in full is made.
2) £50.00 including VAT for each change of sharer/occupier or terms to the tenancy agreement.
3) Early termination of the tenancy agreement will be charged at £100 including VAT to cover the extra administration by leaving your contract early. Tenants will also be subject to the terms of their contract i.e. rent up until a new tenant is found or until their notice expires – whichever is comes first.
4) Referral fees are paid to Vesper Group when we introduce tenants or landlords to 3rd party services. Referral fees range from £5 upwards and we ask for the consent of the tenant or the landlord before introducing these partners.
5) Zero Deposits, where we introduce you to the Zero Deposits Scheme we receive 8% commission. The advantages of Zero deposit are: a) it frees up your cash-flow b) it may enable you to move in faster if you don’t need to save up for a deposit. The disadvantages of Zero Deposits is: a) the premium you pay them will not be refunded at the end the tenancy b) you may not cause any damage in the property that equates to the premium you paid.
6) We are members of the ARLA Propertymark Client Money Protection Scheme. Clients monies are protected in specific client accounts within Barclays Bank Plc. Link to rules here http://www.propertymark.co.uk/media/1045366/conduct-and-membership-rules.pdf
7) A copy of our latest Client Money Protection certificate can be found here: https://vespergroup.wpengine.com/wp-content/uploads/2019/11/Client-Money-Protection-Security-Certificate-2019-to-2020.pdf
8) We are members of The Property Redress Scheme.
9) We are registered with HMRC Anti-money Laundering Supervision: XEML00000141462
Use of the website
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