This is a friendly reminder to all landlords and letting agents that the Tenant Fee ban is now in full force and effect.
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.
The fees ban legislation went live on 1st June last year, but only applied to tenancies which started after that date, or renewals. But from next week onwards it will also apply to all tenancies, regardless of when they started.
The only fees that can be charged are the rent, a deposit of no more than five weeks’ rent, a holding deposit of one week’s rent and up to £50 to vary a contract.
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.
A breach of the legislation could mean a £5,000 fine rising to £30,000 for persistent breaches, as well as the prohibition on using a Section 21 Notice.
Written by Steven Mather, a business solicitor acting on company sales and purchases. This is general information about the law, not legal advice on your situation.
