FINANCIAL ADVICE CENTRE NEWS
Mortgage Autumn Newsletter 2019
Your Mortgage Team Discusses
Tenant Fees Act: What does it mean for landlords and their tenants?
It’s been a few months since the introduction of the Tenant Fees Act - a crucial piece of legislation designed to protect tenants from the unexpected costs and hidden fees when renting out a new property.
Most of those impacted will no doubt be familiar with the Act and what it means. But I thought this was a good opportunity to talk about what tenants can and cannot now be charged, and how we could help if you have any questions.
Tenants can now only be charged for the following:
• A refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
• A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
• Payments associated with early termination of the tenancy, when requested by the tenant
• Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
• Payments in respect of utilities, communication services, TV licence and Council Tax
• A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement
Tenants cannot now be charged for things like drawing up contracts, reference and credit checks, tenancy renewal fees and check-out fees at the end of the tenancy.
It’s certainly a lot for everyone to take in and adjusting to the changes can be somewhat of a challenge particularly for landlords managing their properties without the use of an agent.
We have found the most useful resource for more help and information on your rights and responsibilities here www.gov.uk/government/collections/tenant-fees-act
A model tenancy agreement can also be found using the government website link.
We are here to help, so for any specific questions you may have, please get in touch. Call 01905 723 058 or email email@example.com.