Refund deposit after tenant fee ban transition period ends 1st June?Make Text Bigger
The tenant fee ban transition period ended on the 1st of June 2020 in England.
I have ASTs that started before 1st June 2019 and have transitioned into statutory and contractual periodic tenancies started before 1st June 2019.
My question is do I need to refund the extra deposit taken before to meet 5 weeks deposit rule?
Editor’s Note: Please see >> https://www.property118.com/official-government-guidance-tenant-fees-ban-released-today/
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 payment within 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.”
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