Tenant Fees Bill Legislation from 1st June 2019
• Tenants cannot be charged for referencing costs
• Tenants cannot be charged for any tenancy agreements
• Tenants cannot be charged for part costs of inventories or check-in/outs
• Security deposits will be capped at 5 weeks’ rent (or 6 weeks’ rent for annual rents over £50,000)
• Tenants can be charged for early termination of tenancy agreements – reasonable landlord costs for re-letting and rent up until a new tenant moves in (up to a total maximum of the rent outstanding for the tenancy term)
• Tenants can be charged for variation of contract cost at the tenants request – expected to be capped at £50 inc vat, unless reasonable costs above the amount can be proven
• Tenants can be charged interest on late payments of rent over 14 days in arrears of 3% above BOE base rate
• Tenants can be charged for breach of tenancy terms – *breach of tenancy charges may be by way of deduction from the deposit at the end of the tenancy)
• Tenants can be charged for negligence – i.e. cost of unblocking toilets by putting nappies down them (though this may be by way of a deduction from the deposit at the end of the tenancy)
• Tenants can be charged for not returning the property back to the standard it was let (fair wear and tear excepted) through normal end of tenancy deposit process
• Tenants can be charged for losing keys or security devices (at reasonable cost)
Existing Tenancies from 1st June 2019
• Upon renewal existing tenants will need to be refunded any security deposit held over 5 weeks of the ‘new rent’
• Tenants cannot be charged additional security deposit levies for having pets and must be refunded additional levies over the 5 weeks’ upon contract renewal
• Existing tenancies which do not renew but become periodic tenancies (rolling on monthly) can keep the existing lodgement of security deposits without any need to refund until a contract renewal takes place – we therefore recommend that all existing tenancies with pets should not renew but should become periodic.