Permitted Payments And Tenant Protection Information
Permitted Payments
For properties in England, the Tenant Fees Act 2019 means that in addition to rent, lettings agents can only charge tenants (or anyone acting on the tenant’s behalf) the following permitted payments:
• Holding deposits (a maximum of 1 week’s rent);
• Deposits (a maximum deposit of 5 weeks’ rent for annual rent below £50,000, or 6 weeks’ rent for annual rental of £50,000 and above);
• Payments to change a tenancy agreement eg. change of sharer (capped at £50 or, if higher, any reasonable costs);
• Payments associated with early termination of a tenancy (capped at the landlord’s loss or the agent’s reasonably incurred costs);
• Utilities, communication services (eg. telephone, broadband), TV licence and council tax;
• Interest payments for the late payment of rent (up to 3% above Bank of England’s annual percentage rate);
• Reasonable costs for replacement of lost keys or other security devices;
• Contractual damages in the event of the tenant’s default of a tenancy agreement; and
• Any other permitted payments under the Tenant Fees Act 2019.
For properties in Wales, the Renting Homes (Fees etc.) (Wales) Bill , once enacted, means that in addition to rent, lettings agents can only charge tenants (or anyone acting on the tenant’s behalf) the following permitted payments:
• Holding deposits (a maximum of 1 week’s rent);
• Deposits;
• Utilities, communication services (eg. telephone, broadband), TV licence and council tax;
• Payments for the late payment of rent;
• A breach of a term of the contract;
• Any other permitted payments under the Renting Homes (Fees etc.) (Wales) Bill and regulations once enacted.
Lettings Fees Information from Luscombe Maye
Holding Deposit
A holding deposit may be required in order to reserve a property. Holding deposits will be the equivalent to 1 weeks’ rent and subject to statutory legislation on the repayment of this should the tenancy not go ahead.
If the tenancy does go ahead, the holding deposit must be returned within 7 days of agreement. Alternatively, it can be converted into part payment of the actual deposit or used towards the initial rent payment.
Tenant Deposit
On completion of a successful application and after the signing of contracts; Five weeks rent – This will be held in accordance with the Tenant Deposit Protection Scheme.
Rent
On completion of a successful application and after the singing of contracts; The first month’s rent will be payable in advance (unless otherwise agreed)
Tenant Protection
• Redress: Luscombe Maye is a member of The Property Ombudsman Scheme.
• Client Money Protection: Luscombe Maye is a member of The Royal Institute of Chartered Surveyors Client Money Protection for Residential Agents scheme.
• Luscombe Maye is also a member of The Association of Residential Letting Agents – ARLA Propertymark.
Questions: 01752 393330 or E: lettings@luscombemaye.com
