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Tenant Fee Ban June 2019

TENANT FEE BAN JUNE 2019

The much anticipated tenant fee ban came into force on 1 June 2019. From this date, landlords and agents will not be permitted to ask for payment that restricts a tenant's ability to access housing. 

Fees

In a nutshell, these can no longer be charged:
- Application fees to apply to rent a property
- Referencing fees in order to obtain references like credit checks, employers references or landlords references
- Fees for issuing landlord references
- Fees for issuing a letter chasing arrears or late rent payment
- Excessive tenancy renewal fees. £50 (including VAT) is the current cap for paperwork associated with renewing the tenancies

Things like replacement keys can be charged but only to the extent of what's reasonable, ie. the cost of the keys.

There is a guide called "Tenant Fees Act 2019: Guidance for landlords and agents". Just google it to read the lengthy document that details what payments are permitted and what are banned.

If agents or landlords continue to charge these payments after 1 June 2019, they will be committing a civil offence and be subject to a £5000 fine. More for repeat offences!

Deposits 

Deposits are now capped at 5 weeks rent in total. That includes anything that use to be a "pet deposit". We will no longer be able to take £100 extra per pet. However, we have found a way around it by proposing that rent will be "X per month" but "X + Y per month for pets". 

For more information or advise on the new tenant fee regulation, please give us a ring on 01782 478444 and speak to our expert staff.
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