With the introduction of the Tenant Fee Ban, new rules regarding deposits have been bought into law. Deposits for tenancies that commence from June 2019 are capped at the equivalent of 5-weeks’ rent.
This also means that if you renew a current tenancy moving forwards we will need to review the amount protected for the tenancy. If it is found that the amount is higher than the cap, we are required to refund the over-payment to the tenant.
If your tenancy agreement has any individually negotiated clauses that have resulted in a higher deposit being taken, for example a pet deposit, these will also have to be refunded but we can look at alternative options available to you. It is permitted under the new legislation to ask for an increased rent in such circumstances.
Existing tenancies will be subject to these changes from June 2020. As we get closer to this deadline we will contact you directly to discuss any refund we need to process to your tenants.