The Tenant Fees Act 2019 makes changes to Tenant fees - what do I have to pay?

The Tenant Fees Act 2019 takes effect for all Assured Shorthold Tenancies signed on or after the 1st June 2019.

As a tenant this means that new rules apply on what can be charged to a tenant for setting up, renewing or continuing with a tenancy.

Any new tenancy signed on or after the 1st June 2019 is only be able to charge 'Permitted Payments' under the Tenant Fees Act 2019 rules. These Permitted Payments include:

• Rent
• A 1 week holding deposit (refundable)
• A tenancy deposit (capped at 5 weeks rent for tenancies with £50,000 rent per annum or less) (6 weeks rent for tenancies with rent over £50,000 per annum)
• Payments in the event of a default e.g. loss of keys (£50, or more if evidenced with invocies or receipts to show the reasonable costs incurred)
• Payments if default in rent payment (i.e. failure to pay/paying late) - chargeable at 3% above Bank of Englad base rate, from date due, applied to the tenant after 14 days late
• Payments where the tenant requests a variation to the contract (£50, or more if evidenced with invoices or receipts to show the reasonable costs incurred)
• Payments for utilities, council tax, television licencing, communication services or Green Deal charges
• Payments where tenant requests to surrender the contract outside the terms of the contract/in breach of the contract (£50, or more if evidenced with invoices or receipts to show the reasonable costs incurred)

Any other charges are considered 'Prohibited' and must be returned to tenants in the event they are taken by a landlord or agent, a tenant cannot be asked to secure and pay for servies from other 3rd parties in connection with a tenancy either - this is also prohibited  (e.g. referencing or inventory fees).

For tenancies already in place as of the 1st June 2019, transitionary rules apply and any fee detailed and applicable to the existing tenancy agreement can still be charged until 31st May 2020.