On the 1st of June the Private Renting Sector underwent a big change in the form of the Tenant Fees Act. But what does it mean and how does it affect both tenants and landlords?
In essence, the Tenant Fees Act will have a considerable effect on a landlord’s (or letting agent’s/property manager’s) ability to charge certain fees to tenants, and restrict how holding deposits can be requested. Also the aforementioned parties can no longer require tenants to pay for credit checks, inventory fees, or professional cleaning.
The primary goal of the Act is to reduce the costs facing tenants at the beginning of (and throughout) a tenancy. It will also allow tenants to see the true cost of a rental property upfront without having to worry about hidden costs.
It’s generally assumed that letting agents will be most affected by the Act, as it’s estimated that around 20% of their income is made up of tenant fees. But, of course, it’s something that all landlords need to be aware of.
Currently these new rules only apply in England (with a separate set of rules due to come out in Wales at a later date), and though the Tenant Fees Act came into effect immediately as of June 1st, there is still a 12 month grace period for existing tenancies.
For further information about these new rules, contact grahamshannon@