Did You Know!? What Types of Tenant Fees are Allowed?

The Tenant Fees Act came into force on 1 June 2019, banning all tenant fees which are not considered to be ‘permitted’ fees. Permitted fees include rent, security deposits, holding deposits, early termination, and some default fees. The key measures include:

  • Tenancy Deposits must not exceed the equivalent of five weeks’ rent (unless the annual rent exceeds £50,000 in which case deposits are capped at six weeks’ rent)
  • Holding Deposits will be capped at no more than one week’s rent
  • The amount that can be charged for a change to a tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred
  • A breach of the ban will incur a civil offense with a financial penalty of up to £5,000

Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:

  • A change or early termination of a tenancy when requested by the tenant
  • Utilities, communication services and Council Tax
  • Payments arising from a default by the tenant where they have had to replace keys or a respective security device, or a charge for late rent payment (not exceeding three percent above the bank of England base rate)

Join The Discussion

Compare listings