What is the Tenancy Fee Act 2019?
The rental landscape in England changed on June 1, 2019 the day the tenancy fee act 2019 aka the tenancy fee ban, came into effect.
Below, you may take our quiz to test your knowlege, check out the answers to the quiz and download an infographic to help you remember the key points.
What does the ban mean?
THERE IS A VERY SPECIFIC LIST OF OF WHAT IS CHARGEABLE
Before the change in the law, landlords and agents could pretty much charge for anything they liked. These have included the following: application and admin fees, contract negotiation fees, tenant referencing fees, check-ins and check-outs, inventory fees, renewal fees, end-of-tenancy fees. Some even changed to move in on the weekend!
Absolutely all of the above are now illegal. In fact, there is a specified list of what tenants can be charged. Below is the list:
Rent
Utility bills
A holding deposit capped at one week's rent
A security deposit capped at five or six weeks' rent, depending on the annual aggregate rent of the property
Rent arrears
The cost of replacing a lost key or other security devices
Variation to the contract, capped at £50 including VAT
A green deal payment or other energy efficiency charges
FAQ
Can tenants be charged for late rent?
Yes, landlords can charge interest from 14 days post the rent due date i.e. when the rent is 14 days late. However, it is capped at 3% above the Bank of England's base rate from the date the rent falls due, until the date it is paid.
Can tenants be charged for professional cleaning at the end of a tenancy?
No. However, you can ask that the property be returned in the state that it was at the beginning of the tenancy. This means that if it was professionally cleaned (and you can prove it) the tenant must return it in the same way.
Can tenants be charged for ending a contract before the end of a fixed term?
Yes. However, the fee can not be more than the total rent left during the tenancy term. It should also be no more than the cost to re-let the property plus any rent between when the current tenant moves out and the new tenants move in.
If you have any questions, get in touch with Husmus today.