The Tenant Fees Act came into force on 1st June 2019. This Act prevents landlords and agents from charging tenants fees for entering, renewing or terminating a tenancy in England. There are also restrictions placed on tenancy deposits.
The aim of the Act is to reduce the costs that tenants pay in respect of a tenancy.
All tenancies taken out or renewed after 1st June 2019 will be subject to the ban.
Where tenancies were entered prior 1st June 2019, landlords or their agents will still be permitted to charge fees until 31st May 2020.
All tenancies on or after 1st June 2019 will be subject to the Tenant Fees Act even where there is a contractual term in the tenancy agreement permitting payments that are otherwise banned under the Act.
If the annual rent is less than £50,000, a deposit is capped at 5 weeks rent for all new tenancies which are executed or renewed on or after 1st June 2019. If the annual rent is £50,000 or above the deposit is capped at 6 weeks rent.
If the deposit has been taken before the 1st June 2019 the cap does not apply unless the tenancy is renewed after 1st June 2019.
Where tenancies that exceed the deposit cap are renewed after 1st June 2019 landlords or their agents will need to refund the amount of the deposit held which is over the relevant 5 or 6 week cap.
Holding Deposit – one week’s rent. Once the tenants application is successful the funds will make up part of the tenants move-in monies.
Current permitted payments:
Lost Key/s or other Security Device/s - tenants are liable for the actual cost of replacing any lost key/s or other security device/s. If the loss results in locks needing to be changed, the actual costs of a locksmith, new lock and replacement keys for the tenant, landlord and any other persons requiring keys will be charged to the tenant.
Variation of Contract (Tenants Request) - £50.00 (inc VAT) per agreed variation. Early Termination (Tenants Request) - should the tenant wish to leave the contract early, they shall be liable for the Landlords costs in re-letting the property as well as rent due under the tenancy until the start date of the replacement tenancy.
For further information please contact Paul Forbes, Forbes Estate Agents your local independent sales and lettings agent on 01257 273 324 or email email@example.com