Permitted Tenant Payments Under the Tenant Fees Act
The Tenant Fees Act clearly limits the charges that landlords and letting agents can request from tenants. Aside from rent, only specific "permitted payments" are allowed. Any other charges not listed under the Act are prohibited. This legislation was introduced to create greater transparency and fairness within the private rental sector, ensuring tenants are not faced with unexpected or excessive fees.
Below is a detailed breakdown of the permitted payments landlords may legally charge in connection with a tenancy agreement:
Rent
The agreed amount payable by the tenant for occupying the property, as set out in the tenancy agreement.
Tenancy Deposit (Security Deposit)
This must not exceed:
- Five weeks' rent where the total annual rent is less than £50,000
- Six weeks' rent where the total annual rent is £50,000 or more
Holding Deposit
- Paid to reserve a property before the tenancy agreement is entered into
- Must not exceed one week's rent
Default Fees
(Only in Specific Circumstances)
Landlords may charge for:
- The loss of a key or other security device providing access to the property
- Late payment of rent, where rent remains unpaid for 14 days or more after the due date
Changes to the Tenancy Agreement
(Tenant's Request)
- A fee of up to £50, or
- A higher amount if the landlord can demonstrate that their reasonable costs exceed £50
Early Termination
by the Tenant
- If a tenant ends a fixed-term tenancy early or leaves without giving the required notice, the landlord may recover costs
- The charge must not exceed the actual financial loss suffered by the landlord
Council Tax
Where applicable, tenants are responsible for paying the relevant council tax for the property.
Utilities and Services
Tenants may also be required to pay for:
- Utilities (gas, electricity, water, etc.)
- A television licence
- Communication services, including landline telephone, internet, and cable or satellite television
These permitted payments ensure that landlords can recover legitimate costs while preventing the introduction of unfair or hidden charges. The Tenant Fees Act provides a structured and transparent framework that protects tenants and promotes clarity in tenancy agreements.
For further information about tenancy agreements, landlord obligations, and property management services, you can visit cribsestates.co.uk for additional guidance and support.