Tenant Fee Ban Transitionary Period to End

It seems as though only yesterday letting agents in England were preparing for the abolition of tenant fees. Fast forward 12 months and from  the 1st June 2020 any fee that was taken in advance on a pre-existing tenancy (pre-1st June 2019) or within a renewal, will be deemed a "Prohibited Payment". This includes but is not limited to check-out fees which had been  taken in advance at the beginning of a tenancy.

Here is some straightforward guidance to assist letting agents & landlords:-

• Any fee taken after 31 May 2020 will be a deemed Prohibited Payment and must be returned within 28 calendar days to avoid any penalty.

• Stick to the terms of the Holding Deposit terms. On year on, this is the first point of reference for many letting agents & tenants.

• The security deposit is capped at the equivalent of 5/6 weeks rent, so be sure that any deposit taken does not exceed this amount. An additional sum of money for pets is prohibited, yet as long as it is clear on the property descriptions for let, the rent CAN be increased for pets.

• Revisit the Permitted Payments in Schedule 1 of the Tenant Fees Act 2019.

• Remember any fee charged to a tenant which is NOT on the "Permitted Payment" list found in Schedule 1 of the TFA 2019 could result in an initial fine of £5,000 rising to £30,000.There will also be an impact on the service Section 21 notice. 

• Most letting agents understand the requirement to refund existing tenancy deposits; note to self, the deposit for an existing fixed-term tenancy which started pre 1st June 2019 which then becomes periodic, does not have to be refunded.

 National Trading Standards are tasked with overseeing compliance of the TFA 2019.