Fees charged to tenants: All change from June

England’s lettings industry has undergone a wholesale change that directly affects how much it costs tenants – or their employers – to rent a property. On the 1st June 2019, the Tenant Fee Act 2019 became law, which banned a number of fees that had previously been charged to tenants. The new act is particularly applicable to the relocation market as it applies to all new tenants and tenants who are renewing their agreements as of 1st June 2019.

Many fees that were previously charged to tenants have been outlawed completely, while some have been capped and others can still legally be charged for. It’s also worth remembering that the new Act applies to landlords and letting agents – both have to abide by the new law. Here is Adleo’s essential guide to the new tenant fee landscape:-

Fees that have been banned

  • charges to view a property
  • insurance policies
  • guarantor requests
  • administrative charges, including referencing, credit checks and guarantors
  • renewal fees for tenancies taken out after 1st June 2019
  • charges for a professional clean, unless there is good reason with evidence
  • gardening services

Fees that have been capped

  • a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the annual rent is £50,000 or more
  • a refundable holding/reservation deposit, limited to one week’s rent
  • payments to change the tenancy when requested by the tenant, limited to £50, or reasonable costs incurred if higher

Fees that can still be charged

  • the rent
  • payments associated with early termination of the tenancy, when requested by the tenant
  • replacement of a lost key/security device, where required under a tenancy agreement
  • a tenancy deposit (capped, as above)
  • a holding deposit (capped, as above)
  • any changes to a contract that a tenant requests (capped, as above)
  • bills such as water, broadband, TV licence and council tax
  • late rent payments (after 14 days)
  • cleaning fees in extreme circumstances, validated with evidence

If you have relocated professionals who are already on long-term rental contracts, it is worth noting that as of June 2020, the Tenant Fee Act 2019 will apply to all existing rental contracts that pre-date 1st June 2019. If you’d like guidance on the new Act and clarification of the fees your tenants may or may not be charged, contact Adleo Relocation today.

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