On 1 June, the Government issued a new Act across England which stops agents and landlords charging a number of fees for tenants living in rented accommodation. Neil Randle, one of our Residential Property Managers, discusses what the Tenant Fees Act involves and how it could affect you as a tenant.
“The Tenant Fees Act that is now in place across England has been several years in the making and will have an impact if you’re currently, or will be living in rented accommodation. The enforcement of this Act now means that particular fees cannot be charged to tenants, these include:
- Admin charges
- Charging for a guarantor form
- Credit checks
- Cleaning services
- Professional cleaning
- Requirements to have specific insurance providers
- Gardening services
Holding deposits, deposits and rent are exempt from this list.
In addition to these fees being banned, some other key measures of the Act include tenancy deposits not exceeding the equivalent of five weeks’ rent (unless the annual rent exceeds £50,000, in which case deposits are capped at six weeks’ rent), holding deposits will be capped at no more than one week’s rent, and the amount that can be charged for a change to a tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred.
This is good news if you’re living in rented accommodation, as it means there are fewer costs to keep track of, however there are warnings that landlords may increase upcoming rent in order to cover these now banned fees – It’s important to point out that your landlord has to give you at least a month’s notice if they want to increase your rent.
As a Residential Managing Agent, we know there will still be much uncertainty in the industry, however we can ensure any misconceptions you have about the Tenant Fees Act are resolved. Pennycuick Collins is also part of recognised professional property bodies ARLA and RICS, so if we manage your property, you can be sure that we’ll keep you updated with the latest residential property requirements.”
Please don’t hesitate to contact our Residential Lettings Team on 0121 456 1700 if you’re still unsure about anything regarding the Tenant Fees Act, or email email@example.com who will be able to provide you with additional information or advice.