Ban on tenant fees - key facts for tenants and landlords - 24/07/2019

It was back in 2016 that the government first announced its intention to change the way tenants are charged during the residential lettings process. With reports across the UK of some landlords and lettings agencies imposing exorbitant upfront fees, a change was necessary in order to protect tenants from unethical practice. The new laws on tenants’ fees and deposits finally came into place on June 1st 2019, and all landlords and lettings agencies must now operate within the same rules. Here at Micawber Lettings, we’ve always worked hard to ensure a fair deal for both landlords and tenants – take a look at our testimonials to get a flavour of the way we work. However, we have of course reviewed our fee structure to ensure it complies fully with the new legislation.

Here we list the key facts of the Tenants Act 2019:

  • Refundable tenancy deposits are now capped at no more than five weeks’ rent. But if the annual rent is £50,000 or above, the refundable deposit can be up to six weeks’ rent.
  • A refundable holding deposit – used to reserve a property – is now capped at no more than one week’s rent.
  • If a change to the tenancy is requested by the tenant, for example the tenant would like a partner or friend to move in, the maximum charge for making the change to the tenancy agreement is £50.
  • Tenants who request early termination of the tenancy are subject to a charge. The charge is effectively capped at any lost rent plus reasonable charges involved in re-letting the property.
  • Tenants can be charged a ‘default fee’ for replacement of a lost key or security device, or if they fail to pay rent within fourteen days of the due date.

Under the Act, many other fees are now banned, such as charges for credit checks, inventories or cleaning services.

Whether you’re a landlord or a prospective tenant in the Worthing area, we’re here to answer all your questions and ensure the lettings process runs smoothly from start to finish. Don’t hesitate to get in touch if you’d like to find out more. We look forward to hearing from you!

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