Tenant Fees Act 2019 – Does this affect your next let?

Keeping up with the continually changing legislation and regulations surrounding letting property in England can be a mine-field, but Maldon Lettings are here to help!

WHAT IS THE TENANT FEES ACT 2019?

The tenant fees act 2019 came into force 1st June 2020 and applies to all shorthold tenancies, tenancies of student accommodation and licenses to occupy housing in the private sector in England. It outlines the additional charges that can no longer be charged to tenants also known as prohibited payments and charges that are still applicable to tenants – permitted payments.

 

Permitted payments include:

  • The rent

  • A refundable tenancy deposit (considering capped amounts)

  • A refundable holding deposit (considering capped amounts)

  • Payments to change the tenancy

  • Payments associated with early termination of the tenancy

  • Utility payments, council tax, TV license and communication services.

  • Default fee for late payment of rent or lost security device where required in the tenancy agreement.

Any fees aside from the above are considered prohibited payments and should not be charged. 

 

HOW CAN THIS AFFECT LANDLORDS?

Landlords are no longer able to include any charges not permitted under the fee ban. For example landlords are no longer permitted to ask a tenant to pay for any chimneys to be swept at the rental property or to pay costs incurred obtaining a reference from a third party reference service. 

 

 WHO ENFORCES THE TENANT FEES ACT?

The tenant fees act is enforced by trading standards but district councils can also enforce the ban if they choose to do so. Each request made for a prohibited payment is a breach. Breaching the tenant fees act can lead to convictions and penalty charges.

 

HOW CAN MALDON LETTINGS HELP?

Whether you choose our Managed service or our Let-Only service, you can rely on Maldon Lettings to ensure our lettings will only progress if current legislation is strictly followed. All our assured shorthold tenancy agreements adhere to the current regulations regarding the tenant fees act 2019. Our Lettings Specialists have extensive knowledge of prohibited and permitted payments, continually tracking any changes made to legislation to keep lettings lawful.

Claire Drake