Tenant fees act – Renewal with higher rent £50?Make Text Bigger
The act states that a payment is permitted, if a landlord makes a Variation, Assignment or Novation to a tenancy at the tenants request to allow a pet or another person to stay at the dwelling.
So if I draw up a renewal with higher rent, would this qualify for the fee of up to £50 as it is a variation to the original contact?
Editors note: Landlord and Agents Guidance the Tenant Fees Act >> Click Here
The only payments you can charge in connection with a tenancy are:
a) the rent
b) a refundable tenancy deposit capped at no more than five weeks’ rent where
the annual rent is less than £50,000, or six weeks’ rent where the total annual
rent is £50,000 or above
c) a refundable holding deposit (to reserve a property) capped at no more than
one week’s rent
d) payments to change the tenancy when requested by the tenant, capped at
£50, or reasonable costs incurred if higher
e) payments associated with early termination of the tenancy, when requested
by the tenant
f) payments in respect of utilities, communication services, TV licence and
council tax; and
g) A default fee for late payment of rent and replacement of a lost key/security
device, where required under a tenancy agreement
e) changes to the tenancy (capped at £50 or reasonable costs if higher)
Where a tenant requests a change to the tenancy agreement (e.g. a change of sharer or permission to keep pets on the property) you are entitled to charge up to £50 for the work involved in amending the tenancy agreement or the amount of your reasonable costs if they are higher. It is good practice for a landlord or agent to agree to reasonable requests to vary the tenancy agreement. The general expectation is that the charge will not exceed £50.
You should provide evidence to demonstrate the reasonable costs of carrying out the work if you wish to charge above £50. Any charge that exceeds the reasonable costs you have incurred will be a prohibited payment.
Please note: the provisions on a change to the tenancy does not apply to a renewal or to the length of the tenancy. From 1 June 2019, agents and landlords will not be able to charge for a renewal of a tenancy under the Act.
However, if the tenancy was entered into before 1 June 2019 and it was agreed in their contract to pay certain renewal fees, then a landlord or agent can charge these fees for a new fixed-term agreement or statutory periodic agreement up until 31 May 2020.
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