Introduction to the Tenant Fees Act

The Tenant Fees Act 2019, effective from 1 June 2020, bans landlords from charging renters fees beyond a few specified charges. These changes impact all tenancies in England, outlining allowable fees and establishing new regulations for landlords and agents.

What Fees Can Landlords Charge Under the Tenant Fees Act?

Under the new rules, landlords can only charge for rent, refundable deposits, holding deposits, certain default fees, and other specific charges, such as those related to tenancy changes or lost keys. The Act clearly outlines what is and isn’t permissible.

Limits on Holding and Tenancy Deposits

One of the key changes is the introduction of a deposit cap, which limits holding and tenancy deposits to five weeks’ rent (or six weeks for properties with an annual rent of £50,000 or more). Additional charges for renters with pets are not allowed, although higher rent can be charged for tenants with pets.

What Fees Are Banned Under the Tenant Fees Act?

The Act specifically bans certain fees, including charges for credit checks, inventories, cleaning services, and admin fees. Landlords must be cautious not to charge for anything not explicitly allowed under the legislation.

Penalties for Violating the Tenant Fees Act

If landlords charge fees outside those allowed by the Act, they face fines of up to £5,000. A repeat offence within five years could result in an unlimited fine, making it essential for landlords to fully understand and comply with the new rules.

Implications for Existing Deposits and Future Tenancies

Deposits taken before the legislation’s enforcement that exceed the new limits do not need to be refunded immediately but must be adjusted at the end of the tenancy. The deposit cap applies to all new tenancies created after 1 June 2019.