Changes in the Tenant Fees Act

We are urging landlords to check they are compliant with the Tenant Fees Act which applies to all tenancies regardless of their start date from midnight on the 1st June.

Landlords and agents are being reminded that the year-long period that the government gave them to prepare for the tenant fees ban ended on Midnight Monday 1st June and that they should check carefully that they are compliant.

What's Not Allowed:

1. Landlords and their agents will not be able to charge any of their tenants prohibited fees including for check-ins and check-outs, referencing, viewings, inventories, securing guarantors, and property cleaning. 

2. Any prohibited ‘advance fees’ that were charged before the fees ban and were carried through until now must be returned.

What Is allowed:

1. Fees that can be charged are for rent.

2. deposit of no more than five weeks’ rent.

3. Holding deposit of one week’s rent and up to ￡50 to vary a contract.

4. Other permitted fees include the costs of replacing a lost key, charges for the early termination of a contract, utilities and council tax costs (if charged separately for), and fees for late payment of rent albeit only after the payment has been outstanding for 14 days or more.

Fines:

1. ￡5,000 fine rising to ￡30,000 and a prohibition on serving a Section 21 possession notice. 

2. If a complaint is received by the PRS we will automatically instruct an agent to repay the fee and may well award additional compensation to a tenant.

3. This will not exempt an agent from a local authority prosecution for the breach.