When renting a property, it’s essential to understand that most tenants should not be charged additional fees due to the Tenant Fees Act 2019. This legislation was introduced to protect tenants from excessive costs, ensuring that renting remains affordable. However, there are specific circumstances and types of tenancies where fees may still be applicable. This guide will clarify your rights and outline the fees that landlords and letting agents can legally charge.

The Tenant Fees Act 2019: Key Points

The Tenant Fees Act 2019 prohibits most fees that landlords and letting agents could previously charge tenants in England and Wales. Here’s what you need to know:

• Most fees are banned: The Act restricts landlords and letting agents from charging additional fees beyond the rent and certain permitted payments.

• Types of tenancies not covered: The Tenant Fees Act does not apply to all rental agreements. Some tenancies that may incur fees include:

  • Licences to occupy: Typically used in shared housing situations.

  • Student accommodation agreements: Certain types of student housing may have different rules.

  • Long leases: Where the tenant has a long-term lease agreement (generally over 21 years).

  • Tenancies of commercial properties: These agreements are governed by different legislation.

  • Company lets: When a company rents a residential property for its employee(s), the Tenant Fees Act does not apply, and fees may be charged.

Permitted Payments Under the Tenant Fees Act

Even though many fees are banned, there are specific payments that can still be charged to tenants, regardless of the tenancy type:

• Rent: This is the primary payment that tenants are required to make.

• Tenancy Deposit: Landlords can charge a refundable tenancy deposit, which is capped at five weeks' rent for properties with an annual rent of less than £50,000. For properties with an annual rent of £50,000 or more, the cap is six weeks' rent.

• Holding Deposit: A holding deposit can be charged, limited to one week’s rent. This deposit reserves the property while checks are completed.

• Payments for Changes to the Tenancy: If a tenant requests changes to the tenancy agreement (such as adding a tenant), landlords may charge a fee for processing these changes.

• Lost Keys or Security Devices: If a tenant loses keys or other security devices, landlords can charge for their replacement.

• Early Termination Fees: If a tenant wishes to end the tenancy early at their request, the landlord can charge a fee to cover their costs.

What to Do If You Encounter Admin Fees

If you find that you are being asked to pay fees, consider the following steps:

• Verify the Legitimacy: Ask your letting agent or landlord for a breakdown of any fees they are charging. Ensure they comply with the Tenant Fees Act.

• Know Your Rights: Familiarise yourself with your rights under the Act. If you feel that fees are being charged unlawfully, you can raise your concerns with your local council or seek legal advice.

• Negotiate Where Possible: Depending on the situation, you may be able to negotiate certain fees or request that they be waived.

Being informed about admin fees when renting a property is essential in protecting your rights as a tenant. The Tenant Fees Act 2019 provides significant protections against excessive fees, ensuring that renting remains accessible.

By understanding the permitted payments and recognizing which types of tenancies may incur additional fees, you can navigate the rental process with confidence. If you have any doubts or concerns, don’t hesitate to communicate with your landlord or letting agent. With the right knowledge and preparation, you’ll be better equipped to find your ideal rental home without unexpected or illegal charges.