Tenant Fee Ban
As many of you may already be aware on 1st June 2019 the Tenant Fee Act became law.
The new legislation has sweeping consequences affecting landlords and their letting agents.
Here is a quick synopsis, but we will, over the next few weeks, be releasing a detailed sheet which will provide all the facts which will be published on our website.
In basic terms all fees to tenants have become prohibited unless they are specifically listed as a ‘permitted fee’.
The permitted fees are:
- Utilities Council tax, water, energy, TV etc
- Holding Deposit Limited to one weeks rent and refundable
- Deposit Limited to a maximum of 5 weeks rent
- Rent arrears *
- Variation of tenancy Limited to a maximum of £50 inc vat
- Replacement keys
- Early surrender of tenancy
* 3% on top of the Bank of England base rate only chargeable once rent is 14 days or more late
All other fees are now illegal.
The new legislation will apply to all new and renewal tenancies. This means that landlords who are renewing their tenancy with existing tenants will only be allowed to hold a 5-week deposit. If the current deposit held is greater than 5 weeks the difference will have to be refunded, as soon as possible, to the tenant and whichever deposit protection scheme is being used will need to be updated.
We have updated our tenancy agreements to encompass the new legislation so any new tenancy agreement we issue will have the necessary new clauses to keep you compliant with the legislation.
There is much talk in the media that agents will have to increase their landlord fees to make up for the loss in tenant fees. I am pleased to inform you that Gallant Richardson are not going to do this, and our fees will remain the same.
Should you have any questions or queries relating to the new legislation then please do not hesitate to contact us. We would be delighted to speak to you.