The Tenant Fees Act will bring an end to upfront fees charged by landlords and agents to their tenants. It will also limit the levels of both security and holding deposits. Most security deposits are capped at five weeks’ rent and holding deposits at one week’s rent.
Tenant fees Act, a new guide
The Tenant Fees Act will apply in England only, however similar legislation is being introduced in Wales. This means landlords in England will no longer be able to charge for many services provided to the tenant. Such as referencing, credit checks, and services, such as cleaning or gardening.
The only charges allowed will be for replacement of a lost key or security device, and a charge when rent payments are at least 14 days late. Landlords will also still be able to claim for damages where there is a breach of the tenancy agreement.
There will be a twelve month transition period for existing tenancies. This means that any tenancies agreed before 1st June 2019 will not be subject to the new rules until 2020. However, all new tenancies from 1st June 2019 will need to comply with the regulations. Landlords must make sure that any tenancy agreements are up-to-date and reflect the provisions around fees. For landlords who are found to be in breach of the fee ban, a fine of £5,000 will be issued for an initial breach of the ban. However, it will be a criminal offence if an individual has been fined or convicted of the same offence within the last 5 years.
Alternatively, financial penalties of up to £30,000 for breaching the Tenant Fees Act can be issued by local authorities instead of prosecution.
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For more information on the Tenants fee act go to the government site at https://www.gov.uk/government/collections/tenant-fees-act .