Tenant Fees Ban - guidance from Elite Property Solutions Ltd, Ilford

Tenant Fees Ban

The official guidance notes for landlords, letting agents and local authority enforcement officers explaining how the Tenant Fees Act 2019 affects has been relaesaed by the government – on What is now allowed to be charged from the 1st of June.
 
You cannot evict a tenant using the section 21 eviction procedure until you have repaid any unlawfully charged fees or returned an unlawfully retained holding deposit. All other rules around the application of the section 21 evictions procedure will continue to apply.
 
The only payments you can charge in connection with a tenancy are:
 
  • The rent
  • A refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six 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 one week’s rent
  • Payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
  • Payments associated with early termination of the tenancy, when requested by the tenant
  • Payments in respect of utilities, communication services, TV licence and council tax; and
  • A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
If the fee you are charging is not on this list, it is a prohibited payment and you should not charge it. A prohibited payment is a payment outlawed under the ban.
 
This guidance applies to England only.


Please do get in touch with us if you wish to discuss any aspects of this Tenant Fees Ban regulation with us on 07956 617917.
 

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