The Tenant Fees Act was introduced on 1st June 2019. This is a piece of Government legislation which sets out new rules on what fees can be charged in relation to tenancies – this applies to all forms of privately-rented accommodation, including student accommodation.
In response, we have made some changes to our booking process.
From 1st June 2019, you will no longer need to pay a security deposit when you book with iQ. Previously, the booking fee paid when a booking was made was converted to a security deposit when you moved in. As this will no longer happen, there will be no refund of a deposit due at the end of your tenancy. You will still need to pay a booking fee to secure your room, but this will be deducted from the amount of rent due during the year.
Here’s a quick Q&A on how the changes to our booking process may affect you.
If you book on or after 1st June 2019, you will still need to pay a booking fee, but it will be deducted from your first rent payment when this is due. We have amended our Assured Shorthold Tenancy agreement to reflect this.
If your booking for 2019/20 was fully complete before 1st June 2019, nothing will change – we will convert your booking fee to a deposit and hold this in the usual way. It will then be refunded at the end of your tenancy in line with the terms of your existing contract.
If your booking for 2019/20 was not fully complete by 1st June 2019 – i.e. you had not yet signed your contract or your guarantor had not completed their guarantee – there will be changes to the process of completing your booking. Everyone in this situation will be contacted by us advising what they need to do. Please look out for this email as your booking may be cancelled if it isn’t completed.
You may be due a credit of your booking fee. We will give you the option to have this credited to your rent account or refunded.
We have updated and Assured Shorthold Tenancy contract, and Terms and Conditions, to reflect the changes around security deposits. All references to the deposit have been removed, and the terms now reflect that the booking fee is now credited to your rent account.
In some cases we have had to request guarantors reconfirm their acceptance of our Terms and Conditions because it is essential that the guarantee is made against the same terms as the Assured Shorthold Tenancy contract in place.
Where you have signed the previous Assured Shorthold Tenancy contract your guarantor will be directed to this, but in most cases your guarantor will need to accept the new terms.
If you have any other questions about the changes, please get in touch with your iQ site.
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