From 1st June 2019 the new Tenant Fees Act will be law capping tenant deposits and banning letting fees traditionally paid to estate agents, reducing the overall cost of renting a property.
What does the new Tenant Fees Act mean for tenants?
It has been reported the new Tenant Fee Act will save renters across England at least £240m a year in additional fees, that’s roughly £70 per household. These changes include a reduction in holding deposits that will now be capped at one week’s rent. Likewise, a change to your tenancy agreement will now be capped at a maximum fee of £50 with evidence being required if your landlord needs to charge more to cover their costs.
What does the new Tenant Fees Act mean for Landlords?
The Tenant Fees Act is legislation that effects what landlords are allowed to charge tenants. As a landlord you will now only be able to recover reasonable incurred costs and will have to provide evidence before charging your tenant or tenants.
The legislation has been designed to prevent landlords over charging for trivial damage or maintenance and presenting tenants with unexpected bills. Landlords or agents that do not comply with the new Tenant Fees Act can be fined up to £5,000 which could increase for repeat offenders to £30,000.
The new Tenant Fees Act also offers fair practice for returning or paying back fees ensuring landlords and agents pay fees in a prompt manner.
Landlords will not be able to evict tenants under a Section 21 until such fees are paid back.
What is a Section 21
A Section 21 can be applied for to regain possession of a rented property, except during a fixed term agreement. This regulation allows landlords to give their tenants two months’ notice without reason. The landlord could then obtain a possession order from the court providing they have submitted the correct paperwork.
New Tenant Fees Act
How can Attwells help?
Our property litigation team overseen by Partner Will Oakes have a long authority in property law. We offer an award-winning client service and will ensure your matter is dealt with in a pro-active manner to save you time and money.
For more information regarding landlord or tenant law please call Will Oakes on 01206 239764.