What are tenant fees, and can landlords charge these? Everything you need to know about the 2019 Tenant Fee Act
GreenPad has always stood for creating a hassle-free experience for students. We have been fee free since our creation in 2013! Our priority is affordability and knowledge to empower students in making informed decisions. This week’s article is all about regulations surrounding tenant fees.
Understanding the Tenant Fee Act:
The Tenant Fee Act came into effect on June 1st 2019. This legislation promotes transparency in the rental market due to the restrictions it places on landlords and agents regarding fees they cannot charge.
Permitted Fees:
Under the Tenant Fee Act, there are some allowed fees, but these are capped to prevent excessive charges. The permitted fees include:
- Changes to the tenancy
- Late payment fees
- Capped at 3% above the Bank of England base rate.
- Refundable tenancy deposits
- Capped at a maximum of 5 weeks’ rent.
- Refundable holding deposits
- Capped at a maximum of one week’s rent.
Prohibited Fees:
The Tenant Fee Act prohibits once commonplace charges, including:
- Viewings
- Right to Rent checks
- These are required by the agent or landlord by law.
- Administration charges
Tenancy Amendments:
Should changes to the tenancy occur (introducing a pet, amending the start/end dates, requesting permission to a run a business from the property, etc.), this is capped at £50 per amendment unless the landlord or agent is able to prove that the resulting cost was higher AND is a reasonable cost.
Holding Deposits:
Holding deposits is money that you have paid to reserve a property before an agreement is signed. Once the agreement is signed, this transitions to a refundable tenancy deposit which must be protected in accordance with legal requirements.
GreenPad provides a student letting service without adding additional fees. Our model allows you to explore multiple rental options without worrying about unexpected charges.
For further information or clarification on tenant fees, please reach out to the GreenPad team at enquiries@greenpad.co.uk. We are here to help you through the rental process, whether that is with us or elsewhere.