Fees Ban for students starting September?Make Text Bigger
One letting agency I know of is is charging students huge admin fees even though they don’t start their tenancies until September on the basis that they have to pay it now prior to the ban coming into force?
Therefore, the question is if the fees ban is in force for all tenancies that start after June 1 2019 is the admin fee paid before this date as above still allowed?
Tenant Fees Act 2019: Guidance for landlords and agents >> Click Here
When does the ban apply?
It depends on when a tenancy agreement was entered into. The ban is being introduced in two stages.
1. From 1 June 2019, if you enter into a tenancy agreement, student let or licence to occupy housing in the private rented sector, you will be prohibited from charging any fees or other payments that are not included in the list of permitted payments above.Landlords will be responsible for the costs associated with setting up, renewing or ending a tenancy (i. e. referencing, administration, inventory, renewal and check-out fees). Agents and landlords do not have to pay back any fees that have been charged to a tenant before 1 June 2019. Where a tenancy agreement was entered into before 1 June 2019, you will still be able to charge fees until 31 May 2020, but only where these are required under an existing tenancy agreement. This might include, for example, fees to renew a fixed-term agreement where a tenant had already agreed to pay these. However, you should consider whether it is necessary to charge in such instances. Where fees are charged, businesses such as letting agents are prohibited from setting unfair terms or fees under existing consumer protection legislation.
2. From1 June 2020, the ban on fees will apply to all applicable tenancies and licences to occupy housing in the private rented sector. You will not be able to charge any fees after this date (apart from those fees which are expressly permitted under the ban – see above).
What does this mean for existing tenancy agreements?
If a tenancy agreement was entered before 1 June 2019, you can continue to require a tenant to pay fees written into that agreement (e.g. check-out or renewal fees) until 31 May 2020. After 1 June 2020, the term requiring that payment will no longer be binding. Should you, in error, ask a tenant to make such a payment, you should return the payment immediately and must return this within 28 days.
If you do not return the paymentwithin 28 days, you will be treated for the purposes of the Act as having required the tenant to make a prohibited payment (a payment that is outlawed under the ban).You do not need to return any amount of tenancy deposit that is over the cap for tenancy agreements that were entered into before the Tenant Fees Act came into force. For more information on this, please read the Tenancy Deposit section.
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