Tenant Act 2019
Permitted payment?
Under Section 2 of the Tenant Act 2019 all charges are prohibited unless specifically listed as a permitted payment;
Recent changes to housing legislation have seen the introduction of the Tenant Act on 1st June 2019. The aim of the Act is to reduce the costs that tenants can face at the outset and throughout a tenancy, and is part of a wider package of measures aimed at rebalancing the relationship between tenants and landlords to deliver a fairer and more affordable private rented sector (PRS) from the tenants’ point of view.
The intention of the act is that tenants will be able to see, at a glance, what a given property will cost them in the advertised rent with no added fees. The party that contracts the service, ‘the landlord’ will be responsible for paying for the service. The Tenant Fees Act defines payments into two separate aspects, ‘Permitted payments’ and ‘Prohibited payments’.
- Rent
- Utilities
- Holding deposit (up to 1 weeks’ rent)
- Security deposit (up to 5 weeks’ rent, or 6 weeks’ if annual rent is over £50,000 per annum)
- Default fees such as; rent arrears, lost keys, other security devices, change of sharer, notation of contract, surrender of tenancy, charges associated with green deal or energy efficiency scheme
Prohibited payments?
All charges not specifically listed as a permitted payment will be prohibited after the ban.
Here are some examples of essential works the tenant cannot be charged for;
- Tenancy application
- General admin & Referencing charges
- Nationality & ‘Right to Rent’ verification
- Tenancy arrangement
- Inventory & schedule of condition
- Check in and out charges
- Contract renewal
- Registering tenancy deposit
- Tenant referencing & affordability
- Credit checks & bank data review
- Electoral role & previous address checks
- Previous landlords/agent reference
- CIFAS (National fraud database) report
- Credit score and conclusion report
- Nationality & ‘Right to Rent’ verification
- Affordability & employment confirmation
- Tenancy agreement
- Prescribed Information
- Serving of initial Legal Notices
- Register & protection of tenancy deposit
- Serving of Energy Performance Certificate
- Serving of Gas Safety Certificate (if required)
- Serving of DCLG How to Rent Guide
- Informing utilities and Council Tax office
If you have any more questions then please feel free to contact us to discuss
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