The Tenant Fees Act 2019 is now in force…
The Act is intended to make residential letting more affordable for tenants by reducing fees at the outset, and during, a tenancy.
Only specific payments are permitted, including rent, a limited deposit, a returnable holding deposit, interest on late rent or reasonable costs to replace a lost key. That’s it. Any other requested fees are ‘prohibited payments’.
A request for a ‘prohibited payment’ carries a fine of £5,000. Multiple breaches can occur on the same tenancy, or over a portfolio of properties, with each breach carrying a fine of £5,000. Further breaches result in a criminal offence and a fine up to £30,000, and a potential ban to let property. These penalties are enforced by local Trading Standards departments who will keep the monies raised by these fines to fund future enforcement.
It’s crucial that you are aware of the changes to ensure there is no inadvertent breach, so get in touch if you need advice to make sure you don’t face the considerable penalties.
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