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. More information can be found 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.
The only payments you can charge in connection with a tenancy are:
a) the rent
b) a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
c) a refundable holding deposit (to reserve a property) capped at no more than one week’s rent
d) payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
e) payments associated with early termination of the tenancy, when requested by the tenant
f) payments in respect of utilities, communication services, TV licence and council tax; and
g) A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
If the fee you are charging is not on this list, it is a prohibited payment and you should not charge it. A prohibited payment is a payment outlawed under the ban.
Pages in "Housing in Multiple Occupation (HMO)"
- What is a HMO?
- HMO Licence fees
- Apply for a HMO Licence
- Does my HMO need a Licence?
- How do I get a HMO Licence?
- How long will it take?
- What happens if I am not a Fit and Proper Person?
- What about Non-Licensable HMOs?
- Temporary Exemption Notices (TEN)
- Can I apply to have my Licence varied?
- What are the Conditions attached to the Licence?
- What happens if I don't Licence my HMO?
- What Standards do I need to Maintain in a HMO?
- Licensable HMO Room Sizes
- The Management Regulations
- What are Amenity Standards?
- What are the Duties of Tenants?
- You are here Tenant Fees Act
- Fire safety in HMO’s
- Waste collection in HMO's