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Regulation update - The Tenant Fees Act
This new regulation came into force on 1st June 2019 and deals with the admin fees which have previously been charged to tenants. These fees include tenancy renewal fees, referencing fees and credit check fees. However landlords and their agents are no longer able to charge these fees for tenancies signed on or after 1st June. Any such costs now need to be met by the landlord.
From 1st June the only costs landlords can charge their tenants for are:
- Utilities and council tax if included within the tenancy.
- A refundable deposit, capped at six weeks' rent. The cap could be five weeks' rent for properties where the annual rent is less than £50,000, under an amendment put forward in the House of Lords.
- A refundable holding deposit to reserve the property, capped at one week's rent.
- Changes to the tenancy requested by the tenant, capped at £50 (or "reasonable costs").
- Early termination of the tenancy requested by the tenant.
- Defaults by the Tenant, such as fines for late rent payments or lost keys. These must be "reasonable costs", with evidence given in writing by the landlord or agent
Any other fees are banned, and landlords or agents found charging the fees could be fined £5,000 for a first offence. If they break the rules again within five years, they could be given an unlimited fine.