Tenant Fees Act 2019
The Tenant Fees Act 2019 states that landlords and their agents may not charge tenants any fees in relation to the granting or setting up of a tenancy. There are provisions within that Act for certain default and other fees that can be reasonably charged. A list of those fees follows.
All fees shown are including VAT at 20% unless stated otherwise.
- Late payment of rent. Any payment of rent which has been outstanding for 14 days or more will attract a default fee of interest on the outstanding amount. The interest will be calculated at 3% above the Bank of England base rate for each day that the payment has been outstanding.
- Lost keys or security devices which provide access to property. If you lose any key or security device which provides access to the property, you will be charged for the replacement of the key or device. In this situation, you will be provided with evidence of the cost incurred by your landlord for the key or device.
Fees relating to changes to the tenancy, when those changes are requested by the tenant
- Change of tenant on a shared tenancy. If you have a joint tenancy, and one (but not all) of the sharers wishes to vacate and be replaced by another party, a fee of £50 is payable to cover the time spent and costs incurred by us in agreeing the arrangements with your landlord, preparing the paperwork, and arranging the changeover for you.
- Other changes to a tenancy agreement. These could include (amongst many things) seeking consent for the keeping of a pet, consent to run a business from home, or any other amendment which alters the obligations of the agreement. A fee of £50 is payable to cover the time spent and costs incurred by us in agreeing the amendment(s) with your landlord, and preparing the paperwork for you. One fee of £50 is chargeable for each occasion that an amendment (or multiple amendments that are requested at the same time) is agreed by your landlord.
Fees relating to a tenant’s request to terminate their tenancy agreement early
- If your landlord agrees to your request to end your tenancy early, you should note that you will remain liable for the rent until the day a new tenancy commences. In the event that any replacement tenancy is agreed at a lower monthly rent, you will also be liable for the difference in rent, for the number of months that were unexpired under the terms of your tenancy. In addition, you will be liable to the landlord's costs in re-letting the property. These costs will be no more than the maximum amount of rent outstanding on the tenancy, and will include:
Landlord’s Tenancy Set-Up cost of £360.
Remaining service charges due to the agent from the landlord for the remaining term of the tenancy agreement.
Example: If there were 3 months remaining on a contract whereby the rent is charged at £1,000 per month, and the service charge is 15% inc VAT then: £1,000 x 15% = £150.00 x 3 months = £450.
You should note that many prospective tenants start their property search more than two months before they are ready to move in. Therefore, if your request to terminate your agreement early is less than two months before the end of your fixed term, it is more likely that a new tenant will not be able to move in before the end of your fixed term. In this eventuality, you will be liable for the rent until the end of your fixed term.
Fees relating to a Company Tenancy (Company Tenancies are excluded from the Tenant Fees Act 2019):
- Company tenancy set-up and application fee - £480.00
- Company renewal of a tenancy - £150.00
- New tenancy agreement due to name change - £300.00