After receiving Royal Assent, the provisions of the Tenant Fees Bill will come into effect on the 1st June 2019 for all tenancies signed on or after the date
This means that the way Letting Agents (or landlords if managing directly) charge tenant fees will be required to change in the following ways:
- Holding deposits must be capped at no more than one week’s rent, applying to a maximum of one property only
- Security deposits will be capped at five weeks rent, where annual rent is below £50,000.
Besides the rent and deposit payments only the following can also be charged and must be evidenced in writing:
- Any changes or early termination of a tenancy (when requested by the tenant)
- Utilities, bills and Council Tax (where applicable)
- “Default’ payments i.e. replacing keys lost by the tenant etc and late rent payments.
Anyone in breach of these new rules faces a fine of £5,000 for a first offence and civil penalties of up to £30,000, so it pays to make sure you know about the changes.
If you are concerned about how the new bill could affect you then please give us a call where we can talk you through the changes.