The Tenant Fees Act 2019 came into effect in June 2019 and has made a significant impact on the way the Lettings industry operates. With so much change, what are the main things that landlords need to know about this legislation?
No More Fees – Landlords and Agents are no longer permitted to charge tenants any fees in relation to renting a property. There are a small number of exceptions to this rule, such as taking holding deposits, payment for damages due to contract breaches and nominal administrative costs for tenancy variations.
Deposit Caps – Deposit amounts on properties are now capped to an equivalent to 5-weeks’ rent. Additional deposits for specific Tenant circumstances, such as pets, are no longer allowed to be taken. You can, however, increase the monthly rent to cover some variations that may occur as a result of specific Tenant circumstances.
Mandated Charges – Landlords and Agents can no longer stipulate that a Tenant is responsible for third-party costs as part of their tenancy agreement. This means that you cannot mandate charges such as tenant insurance policies, gardener visits, professional end-of-tenancy cleaning, etc. within their contract. As with deposits, you can ask for an increased rent to offset these charges.