Tenant Fees Ban. How will landlords and tenants be affected?
The new Tenant Fees Act comes into force on the 1st June 2019. So what is it? And how will it affect landlords and tenants?
What is the new Tenant Fees Act?
In a bid to reduce the charges that tenants pay from the start of the renting process, the new Tenant Fees Act caps the amount that renters can be charged for their deposits and bans letting fees altogether. Specifically it requires that:
Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:
How will it affect landlords?
Landlords (and Agents) will only be able to charge for 'reasonably incurred costs' and will have to provide evidence of the costs before they can be charged to a tenant.
Any landlord (or Agent) ignoring the ban on letting fees risk facing a fine of £5000.
How will it affect tenants?
The changes are good new for tenants. Currently tenants face a range of charges such as admin fees, tenancy renewal fees, referencing fees and credit check fees to name but a few.
From the 1st June 2019, landlords will be responsible for meeting the costs associated with these fees. The only charges that can be made will be:
All other fees will be banned.