TENANT FEES ACT
From 1st June 2019, the Tenant Fees Act (2019) became law and this act affects both agents and landlords alike. It essentially means that letting agents and landlords are no longer able to charge tenants for a number of services as these payments have become prohibited payments.
The Act goes further than introducing prohibited payments, it also affects the amount of deposit we can ask a tenant to pay at the commencement of a tenancy. If the total annual rent for the property is under £50,000, the tenancy deposit must be capped at the equivalent of five week’s rent. If the total annual rent is higher than £50,000, the tenancy deposit must be capped at the equivalent of six week’s rent.
In addition to this, there are other fees that can no longer be charged or fees that have been capped to a certain level. There is also a change in the way in which we are required to deal with deposits for those tenants who have pets as well as a change in our procedures.
For more information, please contact us and we will be happy to explain the Tenant Fees Act (2019) in further detail.