The Tenant Fees Act
The Tenant Fees Act
The Tenant Fees Act became law on 1st June 2019 when it redetermined the fees permitted to be charged to tenants entering into Assured Shorthold Tenancies.
GOVUK - Tenant Fees Act - Published 12 February 2019.
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. Tenants will be able to see at a glance, what a given property will cost them in the advertised rent with no hidden costs. The party that contracts the service – the landlord – will be responsible for paying for that service, helping ensure the fees charged reflect the real economic value of the services provided.
The Act means Landlord & client charges are now as follows:
- For our landlord/client’s security, our References are undertaken by the UK’s leading credit reference agencies. For this service, we are able to bring down the charge per tenant applicant to £37.50 + Vat (total £45).
- Again, the cost of then Checkouts at the end of a tenancy are now required to be covered by our landlord/clients. We will continue to offer the most completive rates by passing on the charges as quoted by the check-out company.
- Cost of Administering and Creating new Tenancy Agreement, includes TDS (Tenancy Deposit Scheme) registration - £310 + VAT (total £372).
- Cost of Administering Tenancy Renewal Agreement for Managed Tenancies and Rent Collection Tenancies, includes TDS (Tenancy Deposit Scheme) registration fee = £140 + VAT (total £168).
- Cost of Administering Tenancy Renewal Agreement for Tenant Find, includes TDS (Tenancy Deposit Scheme) registration fee £237.50 + VAT (total £285).
The Act means Tenants will no longer be required to pay the following charges:
- To administer the tenancy agreement
- To obtain references. Agents need tenants written consent prior to applying for references.
- For inventory check-outs.
The Act means Tenants will be required to pay the following charges
- Rent, typically paid monthly in advance. Occasionally quarterly, bi-annually or annually
- Holding Deposits must not exceed one week’s rent. This deposit payment gives the tenant exclusivity while references are obtained and during which, the property will not be available to other prospective tenants. These monies are permitted to be offset against the initial rent subject to the tenant’s written agreement. The tenancy agreement is required to be signed and dated by all parties within 15 days of receipt of the holding fee. Written consent by both parties will enable this to be extended if required. If the tenancy is not completed within the further determined timescale, the delayed party can insist that the holding fee be returned, and the agreement terminated if this is their preference.
- Security Deposits are not permitted to exceed five weeks' rent unless the annual rent exceeds £50,000 when deposits would then be capped at six weeks' rent. Pets will no longer be permitted to affect the deposit sum held.
- Changes to the tenancy agreement as initiated by the tenant during the tenancy, will be capped at £50 unless it can be demonstrated that a higher cost was incurred.
- A change or early termination of a tenancy when requested by the tenant.
- Utilities, including communication services and Council Tax.
- Payments arising from a default by the tenant. Charges for late rent but not exceeding 3% above the Bank of England base rate, or where keys have needed replacing or a security device.
The redetermination of fees charged to tenants has intentionally and inevitably resulted in elevated administration costs for the landlord/client. With any such legislative changes, Beaconsfield and Beaconsfield Country will always endeavour to minimalize any such cost increases to our landlord/clients in a sincere effort to continue being the most competitive High Street estate agency. In this regard, it is worthy of note that, unlike a higher proportion of estate agencies, 'Beaconsfield Estate Agents Ltd' (Est 2004) has never added ‘Administration Charges’ or ‘Handling fees’ to our landlord/clients invoices for works carried out on their behalf such as arranging plumbers, electricians, trade visits etc, but have instead literally relayed precisely, the most competitive quote we had obtained from the trade.
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For more information about our services, contact us directly at:
Beaconsfield Estate Agents:
01494 681 168 or at firstname.lastname@example.org
Beaconsfield Country Estate Agents:
01753 888 222 or at email@example.com