Tenant Fees from 1st June 2019

The tenant fee ban became the law on the 1st June 2019 and now means that upfront fees cannot be charged to tenants for drawing up tenancy agreements, referencing, right to rent checks or inventory check-ins and outs.  Read more about the new legislation here:

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Tenant Fees from 1st June 2019

The Tenant Fees Bill became the law on 1st June 2019 and it abolished most upfront fees for tenants in England and cap security deposits at the equivalent of five weeks’ rent where the annual rent is less than £50,000.  The cap is still six weeks’ rent where the annual rent exceeds £50,000.  So what does this mean to you?

What fees can a tenant be charged for?

  1. A tenant (or anyone acting on their behalf or guaranteeing their rent) CANNOT be asked to make certain payments in connection with a tenancy.
  2. Tenants cannot be asked to enter into any contract with a third party or make a loan in connection with a tenancy.
  3. The only payments a tenant can be charged in connection with a tenancy are:

The Rent

This is usually paid monthly in advance of the tenancy, sometimes a tenant may ask to pay for a longer period, this is still permissible.

Refundable Deposit

Reserved for any damages or defaults on the
part of the tenant & capped at no more than five weeks’ rent

Holding Deposit

A refundable payment provided in goodwill to reserve a property & capped at no more than
one weeks’ rent

Contractual Amendments

Payments to change details of the tenancy when requested by the tenant & capped at
£50 (inclusive VAT), or reasonable costs incurred if higher

Early Termination

Payments associated with early termination of the tenancy, only when requested
by the tenant

Utility Payments

Payments in respect of utilities, communication services and council tax

Default Payments

Payments arising from a default by the tenant, such as replacing a lost key

Pet Deposits

Additional deposits for having a pet in the property cannot be taken, however, a Landlord can negotiate a higher rental amount to cover a pet living at the property and this would be negotiated in advance with the tenant.

Read the full guidance: https://www.gov.uk/government/publications/ tenant-fees-act-2019-guidance

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