What permitted payments can be charged?
- A refundable tenancy deposit - capped at no more than five weeks rent if your annual rent is less than £50,000 or six weeks if your annual rent is above £50,000
- A refundable holding deposit - capped at no more than one weeks rent
- Payments to change the tenancy agreement (requested by the tenant) - capped at £50
- A default charge for late payment of rent and replacement of lost keys/security device
- A charge for early termination of the tenancy initiated by the tenant
What payments are not permitted?
From 1 June 2019, agents and Landlords will not be able to charge tenants for setting up a tenancy, for a renewal of a tenancy, or for checking out, under the Act.
However, if the tenancy was entered into before 1 June 2019 and it was agreed in that contract to pay certain renewal fees, then a Landlord or agent can charge these fees for a renewed fixed-term agreement or statutory periodic agreement up until 31 May 2020. For tenancies entered into before 1 June 2019, the Landlord/agent can also charge for checking out, up until 31 May 2020.
The Reeds Rains Content Marketing Team
