On 1st September 2019, a new law came into place making it an offence for an agent or landlord to charge certain fees to (potential) tenants.
Any payment a tenant is required to pay, unless permitted by the Act, is banned and is a “prohibited payment”. This is referred to in this guidance as “the ban”. Landlords and agents can’t require the grant of a loan to them or require a person to enter into a contract for services with them as a condition of a tenancy.
No. Any tenancy agreement which is entered into prior to 1 September 2019 will not be subject to the requirements of the Act.
A tenant's regular payment to a landlord for the use of property or land
A security or “tenancy” deposit is any sum of money intended to be held by the landlord or agent otherwise as security against any losses incurred through the actions of the tenant. Click here to see more information on the Deposit Protection Service and what happens to your tenancy deposit
A pet security deposit will be required should the tenant wish to move in with their pet. This is paid in addition to the tenancy deposit
A holding deposit is a small deposit which is paid by a tenant to secure a property. It allows the landlord or agent to check the suitability of a tenant; pending successful completion of their suitability tests. A holding deposit can be any amount up to a maximum of the equivalent of one weeks’ rent. This money will then be deducted from the remaining balance OR if false or misleading information has been given will not be refunded. the holding deposit secures the property for a maximum of 15 calendar days from receipt, the tenancy must then start unless otherwise agreed.
A payment in default is a payment required by the landlord or agent arising from a breach of the tenancy agreement by the tenant, whether late payment of rent by its due date or some other breach. There are occasions where it would be unfair for the landlord to be responsible for meeting the cost to them as a result of the actions of the tenant. Late rent default payments will be required when the rent is 14 days late and subsequently every 7 days
Such as a landlord arranging with a tenant for a contractor to carry out remedial work at a property, and a tenant subsequently refusing entry, or not being home to allow entry, resulting in charges to the landlord.
Avoidable or purposeful damage to property – Equivalent to costs incurred for repairs plus £5 +VAT maintenance work handling charge
Damage to a property caused by neglect or careless or wilful behaviour by the tenant. A £5.00 plus VAT handling charge for any maintenance or work carried out at your property that we have organised
Loss of keys by the tenant requiring a landlord to arrange for the cutting of new keys and delivery of those keys to the tenant.
Fees incurred as a result of a landlord arranging for someone to attend the tenant’s property at the request of a tenant, such as a locksmith or an emergency glazier at the early hours of the morning, when the problem had been caused by the tenant in the first place, such as a window broken on purpose, or keys locked inside a house.
A payment that a tenant is required to make to a council in respect of council tax is a permitted payment.
A payment for or in connection with the provision of a utility (water, sewerage (including cesspits), gas, electricity or other fuel). A payment towards energy efficiency improvements under a Green Deal Plan (within the meaning of section 1 of the Energy Act 2011) is permitted if it is required under a tenancy agreement and made in respect of the dwelling subject to the contract.
A payment that a tenant is required to make to the British Broadcasting. Corporation in respect of a television licence is a permitted payment.
A payment that a tenant is required to make for or in connection with a communication service is a permitted payment if required under a tenancy agreement and made in respect of the dwelling subject to the contract. This includes payments to enable Internet access, cable or satellite television or for the use of a telephone other than a mobile telephone.
** Please note that there may be additional costs involved such as implementing a guarantor, please ask for more details
The Property Ombudsman, Client Money Protection, Deposit Protection Service and are on the approved code of trading standards
Click here to read a guide for tenants in Wales