Fees for Tenants
As of 1st June 2019 the Tenant Fee Ban has come into place meaning we do not charge tenants fees for new or renewed tenancies.
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to new contracts are:
- rent - regular payments of rent, calculated in equal instalments over the duration of the tenancy.
Lower amounts of rent will be deemed to be the actual of rent payable and any surplus paid will be deemed a prohibited payment.
- 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 - Edward Clark Estates do not charge this
- 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
Default payments - the landlord or letting agent is entitled to claim the cost of recovery for replacement security devices (keys, alarm fobs, etc.) but only the reasonable costs of replacement and where costs of replacement have been issued to the tenant.
A landlord or letting agent is entitled to apply interest (calculated at no more than 3% above the Bank of England's base rate, per annum) to unpaid rent if the rent is unpaid for a period in excess of 14 days. Interest is calculated daily, based on annual rent divided by 365 and applied to the number of days less 14, rent is unpaid.
Compensatory amounts for damage, etc. are still permissible subject to contractual terms expressly identifying where deductions can be applied. These deductions can originate from the tenancy deposit should there be sufficient sums or can otherwise be recovered through the usual civil remedies.
A fixed aggregated fee within the property is not permitted.
- The tenant has requested variations to the tenancy agreement - if the tenant has requested the tenancy agreement to be varied, assigned or novated the landlord or letting agent can request a payment of no more than £50.00 to process the change. Any payment in excess of £50.00 is a prohibited payment.
- Early termination- if the tenant requests the term of the tenancy is curtailed, the landlord or letting agent is entitled to an amount of rent which would have been paid if the tenancy had continued. Should the landlord or letting agent be able to enter into a new tenancy agreement with a new tenant during the void period any rents received from the new tenant cannot be claimed from the former tenant. In such circumstances the amount of rent is a prohibited payment payable to the original tenant.
- Inclusive utility bills, broadband, Council tax, TV subscriptions, TV licence, etc. - if a tenancy agreement is inclusive of these items, the landlord or letting agent cannot separately apply liability to the tenant for these sums and such a payment by the tenant would be regarded as a prohibited payment.
The tenant is liable for payment of such services only if the tenancy agreement expressly identifies liability lies with the tenant.
Client money protection: SafeAgent - www.safeagents.co.uk
Client Redress Scheme: The Property Ombudsman - www.tpos.co.uk
Please ask a member of staff if you have any queries relating to our fees.