From the 1st June 2019 the Tenant Fees Act comes into force affecting all who operate in the Private Rented Sector. All tenancies entered into after this date (including tenancy renewals) will be subject to the legislation which bans ALL fees and charges to Tenant’s apart from 7 specific charges that are listed below.
With potential civil penalties of up to £5,000 it is important that all Landlord’s and Letting Agents understand the new rules and do not take any payments from Tenant’s that are now banned.
1, Rent
2, Utilities
3, Holding Deposit (of no more than 1 weeks rent) unless the annual rent is over £50,000
4, Deposit (no more than 5 weeks rent OR no more than 6 weeks rent if the annual rent is over £50,000)
5, Tenant Default Fees of which there are two. One is Missed rent payments – a charge of 3% above the Bank of England base rate can be levied if rent remains unpaid after 14 days from when it is due. The second is Lost keys and other security devices
6, Variation or novation of contract (capped at £50)
7, Surrender of Tenancy
Bricknells have made themselves Tenant Fee Ban compliant. If you manage your own properties then call Bricknells for a review of your property portfolio and we will provide free advice on how this recent legislation affects you and how we can help.
For further in depth information here is a link to the Governments guidance document for Landlords and Letting Agents