Landlord Law – Tenancy Deposit CalculatorMake Text Bigger
Get Tenancy Deposits Right with our Free Calculator
The 1st of June was the deadline for the implementation of the Tenant Fees Act 2019.
As of this date the tenancy deposit will be capped to a maximum of five weeks rent where the annual rent is less than £50,000 and six weeks rent where the annual rent is £50,000 or more.
If any more than this is taken it will be a ‘prohibited payment’. This means:
- You (if you are the landlord or letting agent) will be committing a civil offence and can be prosecuted with a fine of up to £5,000
- The Council can as an alternative impose a financial penalty charge of up to £30,000
- You will not be able to use section 21 until the prohibited payment has been refunded to the tenant ( or licensee if the payment was made by licensees)
- The additional payment can be recovered by tenants / licensees applying to the First Tier Tribunal
It is important when taking a deposit that you work it out correctly as if the payment is just £0.01 over the permitted amount you will, strictly speaking, be subject to penalties. So you need to be careful.
To ensure we all remain compliant with these new deposit rules Landlord Law have produced a very easy and free to use Tenancy Deposit Calculator below: