Tenant Fees Ban – ExamplesMake Text Bigger
Our article “Ban on Lettings Fees to commence June 1st” (click here) created a great deal of discussion in the comments section and in-depth detail on what will and won’t be allowed and is worth catching up on along with the examples below.
Further examples of fees banned, but not exhaustive include:
- Referencing cost
- Charging for credit check
- Charging for completing Guarantor forms
- Inventory Charges
- Any Admin fees
- Additional deposit charges for pets or conditional services relating to keeping pets
- Any professional cleaning services
- Gardening services
- No higher initial rents for a temporary period are allowed to recover costs.
It also cannot be made a condition to take a third party service such as a specific insurance product or Deposit replacement Scheme. Tenants must be given a choice or the tenancy could become invalid.
A Landlord and Agent are in breach of the fees ban if a charge is made and kept for any fee that is not exempt. Trading Standards can issue a fine of up to £30,000 for a breach and a Section 21 notice will be unable to be served on the tenant.
Fees exempt from the ban include:
- Deposit – up to a maximum of 5 weeks rent if the annual rent is less than £50,000 or 6 weeks if greater.
- Holding deposits up to a maximum of one weeks rent
- Fee for a change or early termination of a tenancy when requested by the tenant (subject to cost restrictions)
- Utilities, communication services and Council Tax
- Payments arising from Default fees limited to charges for replacement keys or a respective security device, and late rent payments only. It is not considered reasonable for landlords or agents to charge for their time under a default fee. In exceptional cases, it may be appropriate, but the onus will be on the landlord or agent to demonstrate that they have incurred business costs as a result of the default.
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