This week we helped one of our members with a query they had relating to student lettings and storing items over the summer.
Our member wanted to clarify their position around whether student tenants can store belongings at the property before term starts over July and August and that they as the landlord could charge a reduced rent for these months. They’d heard from a landlord friend this wasn’t permitted anymore under the tenant fees ban.
The advice from our team
Our adviser was able to confirm that in years gone by, if a tenancy was offered to a student and started in June or July and the students were not going to occupy the property until September, some landlords would charge a lower rent for this period. This was known as a retainer, and tenants would have the right to store belongings in the property only, rather than live there.
However, our adviser explained to our member this is now problematic, due to the tenant fees ban, which came into force back in 2019.
Rent and permitted fees
Our adviser then gave the landlord some background around the technicalities of the issue.
Technically, rent is money paid by a tenant for the right to occupy a dwelling. If a tenant has no right to occupy the property, then this traditional 'retainer' payment cannot be described as rent.
As it is not rent it would be considered an additional fee charged by the landlord, and as such would be banned under the Tenant Fees Act.
Is there an alternative?
If tenants wish to store their belongings at a property over the summer months, there is a way round this.
Our adviser explained to the member that instead of a retainer, landlords can offer a separate agreement for storage of goods at the property. However this must be optional and separate in order to be compliant with the tenant fees ban.
The landlord can choose what they charge for this service, for the period the property is vacant over the summer, with the agreement to end just before the AST commences. This fee may well be in line with what would have been charged in the past as a 'retainer', but the landlord has the right to set it as they see fit. Tenants can then decide want to take advantage of the offer or not.
As this arrangement isn’t a tenancy the liability for council tax will return to the landlord, but it is a way that a tenant can store their goods and prepare for the move in date, while still allowing the landlord to comply with the terms of the Tenant Fees Act
• Landlords in England can read more about the Tenant Fees Act in our toolkit here.