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Housing in Multiple Occupation (HMO)

Tenant Fees Act

From 1st of June 2019 it became illegal for landlords and letting agents to charge fee’s to tenants. For more information, please click here

The Tenant Fees Act is aimed to reduce the costs the tenants can face at the outset and throughout the tenancy. It is also aimed to rebalance the relationship between tenants and Landlords to deliver a fairer, and more affordable private rented sector. 

The Tenant Fees Act encourages Landlords to not have a deposit for the tenants. However, if the Landlord does decide to have a deposit then they can only charge the tenant 5 weeks rent if the annual rent equals to less than £50,000. If the annual rent equals to more than £50,000 then the Landlord will be able to charge 6 weeks rent as the deposit amount. 

If you are charging your tenant more than the required amount then that is going against the law and you will have to pay a penalty fine of £5000. If you breach the law again within 5 years of the first breach, then it will be classed as a criminal offence and you will be prosecuted.