The Ban on Tenant Fees 21 Jan 2019
The Tenant Fees Bill will be made law on 1st June 2019 and it will abolish 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 you ask a tenant to pay?
- A tenant (or anyone acting on their behalf or guaranteeing their rent) CANNOT be asked to make certain payments in connection with a tenancy.
- Tenants cannot be asked to enter into any contract with a third party or make a loan in connection with a tenancy.
- 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 permissable.
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, 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
If you would like any more information regarding the Tenant Fee changes, please contact us: 020 8749 6060
