With so many regulations for landlords to keep up to date with, it can be difficult for Ramsey landlords to stay on top of things. As a local letting industry specialist, we are always on hand to offer guidance if you need it. We know many landlords have struggled to come to terms with the Tenant Fees Act, and what counts as a permitted payment.
What is a permitted payment?
It is helpful to go over what permitted payments can be charged by landlords, over and above the monthly rental fee. You can charge:
- A refundable tenancy deposit – this deposit is capped at five weeks’ worth of rent when the annual rent is less than £50,000, and the cap is six weeks’ worth of rent when the yearly rent is higher
- A refundable holding deposit – this deposit is capped at one weeks’ worth of rent
- When a tenant requests a change to the tenancy agreement, a charge can be imposed – the standard cap is £50, but if a landlord can show they have incurred higher costs, the fee can reflect this
- Default charges for late payment of rent and replacing lost keys or security devices – the charge should reflect the loss or expense to the landlord and no more
- When a tenant initiates an early termination of tenancy, a charge can be imposed
If you follow these guidelines, you will meet the criteria detailed in the Tenant fees Act.
What payments can I not charge for?
As of the 1st of June 2019, landlords and their agents are not permitted to charge tenants for setting up a tenancy, renewing a lease or for the checking-in or checking-out process.
However, for tenancies which started before the 1st of June 2019, where the contract details specific renewal fees, landlords can charge fees for a renewed fixed-term agreement until the 31st of May 2020. Also, if the tenancy started before the 1st of June 2019, landlords or their agent can charge for the checking-out process until the 31st of May 2020.
Therefore, landlords with longer-term tenants who may not have been affected by the Tenant Fees Act yet should be aware of changes coming into effect next year. With so many new and updated regulations to bear in mind, it is useful for all landlords to stay up to date with what is expected of them.
“We know being a landlord is tough with so many regulations to remain in touch with,” said Thomas Morris Ramsey Branch Manager Joe Rattue. “The Tenant Fees Act is a significant regulation, and if you need assistance complying with it, please get in touch with us, as we are happy to help.”
Letting property is stressful, but it is possible to feel more confident about your chances and the market in general. If you need help with any part of the letting process, we can help. Book a valuation at a time that is suitable to you or; you can phone our Ramsey branch, managed by Joe Rattue by calling us on 01487 814666.