It’s official the Tenant Fee ban is coming into effect for any tenancies starting on or after 1st June 2019. In our blog back in January, we discussed what we knew so far on the upcoming ban in our blog, and largely not much has changed. Following the 1st June 2019, the only fee’s a tenant can be asked to pay are:
2. Utility Bills / green deal payments
3. Holding deposit capped at 1 week’s rent
4. Security deposit capped at 5 weeks rent (6 weeks if the annual rent is above £50,000)
5. Capped interest on unpaid rent 14 days or more in arrears
6. The cost of replacing lost keys or other security devices
7. Reasonable costs associated with variation to the contract (mostly capped at £50)
These are known as permitted payments; in principle any other penny a tenant is asked to pay is unlawful. However, there are some slight caveats to this statement…
Tenants must still treat the property in a ‘tenant-like’ manner and therefore can still be asked to pay for any negligence caused during their tenancy. This is covered by the damage’s provisions part of the Act, which says you can charge the tenant to return the property to the same condition it would have been in, if there had not been a breach in the tenancy agreement. The same logic also applies to end of tenancy cleans, and although a professional clean cannot be enforced, the property must be returned in the same condition as when the tenancy started (except for fair wear and tear); how the tenants fulfil this is up to them.
The ban is not retrospective, so any contract signed before 1st June 2019 will not be affected, and any fees associated with that tenancy will still be enforceable until 31st May 2020. If an existing tenancy renews during that period, the fee ban will apply as it will be classed as a new tenancy.
If you want any advice or guidance, or have any questions regarding the tenant fee ban, please don’t hesitate in getting in touch.