If you are a landlord or letting agent, then it’s essential to understand the changes that were introduced by the Tenant Fees Act on 1st June 2019.
The Act only applies to properties based in the UK at the moment; these include:
- Assured shorthold tenancies
- Licences (lodger lettings for example)
- Student lettings (provided by a specified educational institution)
The Tenant Fees Act has been introduced because there have been circumstances when landlords or letting agents have requested additional fees at the start or tenancy agreements which have made it difficult for tenants. It is hoped that by banning additional fees, it will be easier for tenants to understand what the cost of renting is from the outset, without having to worry about any additional hidden fees.
It is important to note that the Tenant Fees Act only applies to any tenancy agreements signed on 1st June 2019 onwards.
From a landlord’s point of view, it is crucial to understand which payments they can request from their tenants, these are listed below:
- Rent
- If the total annual rent is less than £50,000, then a refundable tenancy deposit of 5 weeks or less can be requested.
- If the total annual rent is more than £50,000, then a refundable tenancy deposit of 6 weeks or less can be required.
- A refundable holding deposit capped at no more than one week’s rent
- If the tenant decides to terminate the tenancy agreement early, then payment can be requested by the landlord.
- Essential payments relating to the property such as utilities, communication services, TV licence and Council Tax
- A default fee for late payment of rent if already stated in the tenancy agreement
- Payment towards the replacement of a lost key/security device giving access to the housing.
If you are a landlord and you wish to understand how these changes will impact your financial position, then please do get in touch
by calling 01623 490 120 or email