The Tenant Fees Act 2019 changed how landlords and letting agents handle charges. Non-compliance can lead to fines and repayment orders, so it is vital to understand what you can and cannot charge tenants.
Permitted Fees
Landlords may only charge tenants for:
- Rent
- Tenancy deposit (capped at 5 weeks’ rent if annual rent is under £50,000, or 6 weeks if over)
- Holding deposit (capped at 1 week’s rent)
- Utilities, council tax, TV licence, and communication services (if stated in the agreement)
- Default fees for late rent or lost keys (reasonable and documented)
- Early termination (if requested by the tenant, and only covering actual costs)
Banned Fees
The Act prohibits charges such as:
- Administration or referencing fees
- Inventory costs
- Check-in or check-out fees
- Renewal fees
Penalties
Non-compliance can result in:
- Civil penalties of up to £5,000 for first offences
- Criminal charges or fines of up to £30,000 for repeat offences
- Repayment orders to tenants
Conclusion
The Tenant Fees Act simplified charges to make renting fairer. Landlords must adapt their processes accordingly.
Download our free landlord checklist to stay on top of fee rules and compliance.