Blogs

The Complete Zeitgeist 2019 | T is for Tenant Fee Act 2019

The Tenant Fee Act came into place June 1st, 2019, and we worked very hard to make sure we have implemented this change into every aspect of the business in order to provide a smooth transition for us, our landlords and tenants. The legislation means that landlords and agents are no longer allowed to charge tenants any fees associated with the start, end or renewal of tenancy.

Fees such as referencing and inventories are now prohibited fees, however as they remain important steps, and part of our due diligence prior to moving tenants into a property, we have applied these charges to landlords. This way we can ensure that we are moving in the best quality tenants as possible.

We are only able to charge tenants the following fees but these will be capped:

  • 1 weeks’ rent holding deposit (capped at £399 for greater amounts)
  • Security deposit of up to 5 weeks for annual rent of under £50,000, and up to 6 weeks for annual rent of over £50,000
  • Cost of replacing lost/stolen keys or security devices
  • Rental arrears after 14 days will be charged at 3% above the Bank of England base rate
  • Change of Sharer
  • Novation to the tenancy agreement during the current tenancy

New additional costs to landlords for third party suppliers for essential services:

  • Tenant Referencing Fee
  • Inventory Check-in and Check-out Fee

A £5,000 fine per fee will be charged to any agent or landlord found to be still charging prohibited fee(s) to tenant(s).

There is deadline for any holding fee to be refunded in full to the tenant within 15 days of payment, unless consent is given from the tenant for the holding fee to be deducted from their security deposit and rent upon contract signing.

More information about the Tenant Fee Ban can be found here.

The Complete Zeitgeist 2019

The zeitgeist compiled by leading global residential asset investment specialists Complete Prime Residential is a creative, insightful and thought-provoking collection of concepts in residential real estate investment and management of your properties. Providing an A-Z of all things real estate in the spirit of now get your own copy of The Complete Zeitgeist 2019.

For more information, kindly contact our regional office: