The Tenant Fees Act was first introduced on 1st June 2019. It only applied to tenancies that started after that date and to renewals. Now, landlords and agents are being reminded that a year-long transition period for the tenant fees ban ends today.
Prohibited fees include:
- Securing guarantors
However, the fees that landlords and their agents can charge are as follows:
- Holding deposit of one week’s rent
- Up to £50 to vary a contract
- The costs of replacing a lost key
- Charges for the early termination of a contract
- Utilities and council tax costs
- Fees for late payment of rent albeit only after the payment has been outstanding for 14 days or more
Sean Hooker, Head of Redress at the PRS said that landlords and their agents will face penal sanctions under the law if they charge any of the disallowed fees.
The fine is £5,000 rising to £30,000 and a prohibition on serving a Section 21 possession notice. The Redress Scheme (PRS) will automatically instruct an agent or landlord to repay the fee and they may also award additional compensation to a tenant. “This however will not exempt an agent from a local authority prosecution for the breach and we may be obliged to report an agent to NTSELAT.”
You can read more about the Tenant Fees Act here.
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