From 1st June 2019 following the Tenant Fee Act 2019, prospective tenants will no longer need to pay application fees.
However they may be required to make the following payments:
Holding Deposit
A maximum of 1 weeks rent to secure a rental property.
The holding deposit will be returned if: the tenancy goes ahead, or it can be used as part payment of the first month's rental payment.
The holding deposit will be returned if: the tenancy does not go ahead due to the landlord backing out.
The holding deposit will not be returned if: the prospective tenant back outs.
The holding deposit will not be returned if: the prospective tenant fails Right to Rent checks.
The holding deposit will not be returned if: the prospective tenant has provided false of misleading information.
The holding deposit will not be returned if: the prospective tenant fails to provide the relevant information/identification for move in within 15 days.
Late Rental Payment Interest
If a tenant is late with their rental maybe the agent is permitted to charge interest of this outstanding balance of up to 3% above the Bank of England base rate.
For example, as of May 2019 the current base rate is 0.75%, therefore the agent may charge up to 3.75% interest on any rental arrears.
Other Permitted Fees
Damages caused by breaches of contract.
Loss of Keys/Fobs etc.
Changes to tenancy agreement request by tenant with permission of the landlord.
Early termination of contract.
Third party payments such as Council Tax, TV Licence etc.
Please get in touch with our office if you require further information.
