Tenant Fees Act 2019 – are you compliant?
As of the 1st June 2019, the fees that landlords and letting agents can charge for new and renewed tenancies changed. If you let a property, then you are required to comply with the new Tenant Fees Act 2019.
What are the new rules?
The Tenant Fees Act 2019 currently only applies to England. Tenants can no longer be charged administration fees for:
- Credit checks
- Renewing a contract
- Leaving at the end of a tenancy
In addition, there are caps on deposits:
- 1-week cap on holding deposits
- Security deposits capped at 6 weeks rent
These costs will now have to be met by the landlord themselves.
What can you charge for?
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants for new contracts are:
- a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
- a refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
- payments associated with early termination of the tenancy, when requested by the tenant
- payments in respect of utilities, communication services, TV licence and Council Tax
- a default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement
You can find further guidance on the gov.uk website.
If you found this information useful, you may also want to check out the following:
- What do tenants want in 2019?
- Considering selling your buy-to-let property?
- Should you buy or rent your business premises?
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