Letting Agents, Landlords & Student Lettings

Property Agents & Landlords

As a property agent, the introduction of The Tenant Fees Act 2019 means that you have certain responsibilities that you must comply with.

The following information has been compiled for both letting agents and landlords. Please note that as a private landlord, you do not have to be a member of a Redress Scheme or Client Money Protection Scheme as these are for letting agents and property managers only. However, there may be schemes you can join voluntarily.

As a property agent you must be a member of the following schemes and maintain your membership. Failure to do so may result in a civil penalty between £5,000 and £30,000.

- Redress Scheme

- Client Money Protection Scheme

The Tenant Fees Act 2019

Permitted payments

Rent
A refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
Payments associated with early termination of the tenancy, when requested by the tenant
Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
Payments in respect of utilities, communication services, TV licence and Council Tax
A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement

Prohibited payments (examples)

X Viewing fees, any charge for viewing the property

X Tenancy set up fees, any charge for setting up the tenancy or contracts

X Check out fees, any charge for leaving the property

X Third party fees, any charge for anything that is done by someone other than the landlord or tenant but that the landlord must pay for

X References

X Set-up fees

X Professional cleaning

X Drawing up contracts

X Administration fees including application fees, credit checks and check-out fees

Take a further look at information on tenant fees for landlords.

View Letting legally leaflet