As the recent Queen’s speech reaffirmed the banning of letting fees to tenants, the National Landlord Association have identified a potential issue related to the proposed capping of security deposits to just one month. This change could influence the likelihood of landlords letting to tenants with pets due to the fact that properties that permit pets often have a higher deposit, used to cover any damage.
The NLA have questioned the change and released the following statement.
“In the initial consultation on the fees ban the Government announced their intention to look at putting a cap on security deposits. Data from the NLA AST statistics show that the average deposit (of those taking a deposit) is 4.92 weeks’ rent.
While not the intention, the Government’s plans for imposing this one-month cap on security deposits will reduce landlords’ willingness to accept pets by removing their flexibility to take a higher deposit to cover for pet damage.
Previous research from the NLA showed that almost half (47%) were unwilling to allow pets, with 41% of those citing the reason as potential property damage.
The Dogs Trust’s Lets with Pets scheme advises landlords to either take a higher deposit or include a “professional cleaning on move-out” clause in the tenancy agreement in order to mitigate the financial risk of property damage.
However, the Government’s plans at present could very well outlaw these practices. The end result? Even fewer landlords willing to let to tenants with pets.”
Obviously, it’s not the intention of the Government, but these changes may directly impact many tenants and their pets.
For more key information and tips on letting to tenants with pets read our expert advice guide here.