Everything you need to know about the ban on letting agents charging fees to tenants

Renters across England will have brand new legal rights thanks to the Tenant Fees Ban that comes in this weekend.

From Saturday, June 1 letting agents will be banned from charging tenants for a range of services including admin costs and inventories.

The changes are thank to new guidelines implemented by the government under the Tenant Fees Act 2019.

There will also be caps on the deposit letting agents can ask for and limits on how much they can charge for late fees.

A range of fees will be banned to help tenants from June 1, 2019 (Generic image) (Getty Images/iStockphoto)

It's part of a wider overhaul for the private rented sector, designed to improve the relationship between landlords and tenants.

It means that tenants will no longer have to pay hundreds of pounds to letting agents for everything from viewing a property to getting the contract signed off.

The act will apply to all shorthold tenancies within the private rented sector - and all tenancy agreements signed off after 1 June 2019.

According to Mirror Online , these are the 13 things you need to know before the ban comes into action this weekend:

1. They won't be able to charge you to view a property

Letting agents will no longer be able to charge tenants to view new, prospective properties under the ban.

2. All admin costs will be banned

All costs associated with referencing, credit checks, guarantors and admin will have to be covered by the landlord.

The only exception will be tenancy agreements that started before 1 June 2019, which state that certain costs, such renewal fees, will have to be paid for.

3. They'll need hard proof to bill you for cleaning

Your agent will only be able to charge you for check-out fees if your tenancy contract was agreed before 1 June 2019.

For everyone else, check-out fees and charges for services such as a professional clean at the end of your tenancy will be banned unless they have a very good reason (with evidence) for it.

4. They won't be able to charge you for a reference

Letting agents will no longer be able to charge tenants for fees sourced by third parties, such as for reference checks, credit checks, insurance policies, gardening services or guarantor requests. Any costs associated with these will have to be paid by the landlord.

5. Rent payments will continue as normal

The way in which you pay your rent won't change on Saturday.

Landlords can only apply to change this through a rent review clause for a permanent increase or decrease in rent.

6. Your deposit will be capped

Tenants will be protected by a new set of guidelines that prohibits them from charging admin costs (PA)

This will be capped at no more than five weeks’ rent or six weeks if the total annual rent of the property is expected to be more than £50,000.

7. Holding fees will be capped

This will be limited to the equivalent of one weeks’ rent. Agents will also be banned from continuing to advertise a property once they've received a payment.

All other holding deposit rules will continue as normal.

The fee will have to be repaid once the tenant agrees to the tenancy agreement or after 15 days if the agreement doesn't go through.

These are your rights as a tenant

8. Contract changes will be capped at £50

The maximum amount agents will be able to charge you for amending your contract will be £50.

If the agent expects the associated costs to be higher than this, they will have to show proof of the charges first.

9. 'Moving out early' charges will be capped

This is typically based on financial loss and reasonable costs incurred. The amount should not be more than the amount of rent you would have paid had you followed through with the tenancy until the end of your agreement.

10. Late payments will be capped

Tenant Fees Act 2019 will be implemented from June 1 (Richard Williams)

A 'late payment' is anything that's more than 14 days overdue. For a landlord to charge you for this, it must be written in your contract.

The penalty fee should also not exceed 3% more than the Bank of England’s annual percentage rate (currently 0.75%) for each day the payment is outstanding.

11. It won't apply to those already in contract (for now)

If your tenancy agreement was signed before 1 June 2019, the new rules unfortunately won't apply.

However, from 1 June 2020, the new rules will apply to everyone - whether you have a new contract or not.

12. Agents face a £5,000 fine for breaking the rules

The fine for breaching the Tenant Fees Act will be a civil offence and a fine of up to £5,000.

However, if a landlord makes another breach within five years of the first fine, then the breach will be classed as a criminal offence instead.

A criminal offence could in turn lead to prosecution or a fine of up to £30,000.

Landlords who receive two or more financial breaches in one 12 month period or commit a criminal offence may also find themselves placed on the rogue landlord database.

13. So what can I still be billed for?

Despite the changes, your landlord will still be able to charge you for:

• Rent
• Your tenancy deposit (subject to the caps above)
• Your holding deposit (subject to the caps above)
• Any changes you request to your contract (capped at £50)
• Any requests to terminate your contract early (subject to the caps above)
• Utility bills such as water, broadband, TV licence and council tax
• Late rent payments (after 14 days)
• Replacements for lost keys