New Assured Shorthold Tenancies (ASTs) signed on or after 1 June 2019
- Holding Deposit (per tenancy)
- One week’s rent. This is to reserve a property.
- Security Deposit (per tenancy. Rent under £50,000 per year)
- Five weeks’ rent. This covers damages or defaults on the part of the tenant during the tenancy.
- Security Deposit (per tenancy. Rent of £50,000 or over per year)
- Six weeks’ rent. This covers damages or defaults on the part of the tenant during the tenancy.
- Unpaid Rent
- Interest at 3% above the Bank of England Base Rate from Rent Due Date until paid in order to pursue non-payment of rent.
- Lost Key(s) or other Security Device(s)
- Tenants are liable to the actual cost of replacing any lost key(s) or other security device(s). If extra costs are incurred there will be a charge of £15 per hour (inc VAT) for the time taken replacing lost key(s) or other security device(s).
- Variation of Contract (Tenant’s Request)
- £50 (inc. VAT) per agreed variation.
- Change of Sharer (Tenant’s Request)
- £50 (inc. VAT) per replacement tenant or any reasonable costs incurred if higher.
- Early Termination (Tenant’s Request)
- Should the tenant wish to leave their contract early, they shall be liable to the landlord’s costs in re-letting the property as well as all rent due under the tenancy until the start date of the replacement tenancy.
These fees are in line with the Tenant Fees Act 2019. Please ask a member of staff if you have any questions.
There will, however, be
Permitted Payments that can be charged to tenants:
- Interest on late rent set at 3% daily above the Bank of England base rate
- A payment of lost keys or security devices, the maximum charge being £50.00 inc VAT.
- Early termination (surrender) once again set at £50.00 inc VAT. If a higher payment is charged, the landlord/letting agent must demonstrate in writing why.
- Variation or novation of a contract where the tenant is in situ – the most common request being change of sharer. The payment required would be £50.00 inc VAT unless one can demonstrate in writing why the charge being made would be higher.
The Tenant Fees Act 2019 will also make a provision for changes to the Consumer Rights Act 2015. In short, letting agents will be required to display all fees charged to their consumers on all third-party websites including social media platforms, as well as stipulating who provides the Client Money Protection insurance and which Redress Scheme the letting agent belongs to.
No fees in relation to renewals, inventories, check-in/check-out, missed appointments will be permitted. A tenant will be required to receive any repayment of fees taken within 28 days of the offence being made. Please note that the penalties will be quite severe – an initial fine of £5,000 and then possible fines of up to £30,000 and a knock-on effect if you wish to serve notice. Trading Standards based in Bristol will be the enforcement organisation overseeing this legislation.
Rest assured that we will be dealing with all the elements relating to new tenancies and all the managed properties we currently oversee. It is important to bear in mind that whilst many letting agents are focusing on the income element of the tenant fee ban, we are focused on the changes in processes and systems to ensure that no landlords fall foul of this very key piece of legislation.