The Tenant Fees Act 2019 – otherwise known as the tenant fee ban – came into effect on 1st June. But what exactly does it mean for today’s landlords and renters? If you’ve got queries about the future of your investment, what you’ll need to pay for and what to do next, we’ve got you covered in this Tenant Fees Act 2019 summary.
We have a range of useful guides for landlords, investors and tenants, which you might find helpful. If you have any questions about the change in legislature, get in touch or pop into your local branch to find out more about the tenant fee ban and what it means for your home.
What is the tenant fee ban?
Its official name is the Tenant Fees Act 2019 and it came into effect on 1st June 2019. The tenant fee ban is a new law that means tenants can no longer be charged conditional fees in connection to granting a new tenancy or a renewal of tenancy.
What will tenants have to pay?
What’s classed as a conditional fee, you ask? Well, from June 2019 the only fees landlords and letting agents can charge tenants are:
- Rent – This can also encompass utilities and council tax, if they’re included with the tenancy agreement.
- A capped, security deposit – This is refundable and covers damages or defaults.
- A holding deposit of one week’s rent – Secures the property before signing the contract. This is also refundable.
- Reasonable fees – A charge for when a tenant requests changes to the tenancy agreement (capped at £50) or when they want to end their contract early.
- Any defaults by the tenant – This includes interest charges for late payments or lost keys.
Anything else would therefore be a conditional payment. That means landlords and letting agents can no longer charge for things like tenancy renewal fees, referencing fees and credit check fees. If you’re a tenant or a landlord and you’re still a little fuzzy on the rules Wards is here to help with friendly and impartial advice.
Landlords and the tenant fees ban
As a result of the tenant fees ban, we’ve already noticed that some agents have increased their monthly management fees to new and existing landlords as a way to offset the loss of income that tenant fees used to bring in.
Not us, though. We’re committed to helping landlords with bespoke services like Lets Switch and are freezing management fees until 2020 for existing landlords and 2021 for new ones. Get in touch on 0800 772 0150 to find out more and see how Wards could help look after your investment.
Tenant Fees Act guidance
The tenant fees ban is seen as a positive step that supports renters while appearing to make things a little tighter for landlords. However, a good letting agent like Wards will be able to advise you accordingly, helping you to navigate your investment through this time.
As with most legislature, rules and regulations change all the time. Fortunately, Wards has tonnes of experience when it comes to letting properties in your neighbourhood. If you do have any concerns about the tenant fee ban, we’re always here to help. Get in touch or pop into your local branch to find out more about the tenant fee ban and what it means for your home.