Tenant fees transition period ends

Yesterday marked the end the transitional period where tenants could be charged for references, credit checks, inventories and check-in or check-out reports.

The 2019 Tenant Fees Act banned administration fees for new tenancies, though there was a transitional period up to May 31st 2020 where some fees could be charged if they were agreed before the start of the rule change in June 2019.

Steve Harriott, chief executive of the Tenancy Deposit Scheme, said: “Today is an important date in the calendar for landlords and letting agents in England, as it means that the Tenant Fees Act is fully in force and the transitional period has ended.

“The implication for TDS is that we should no longer see deposit disputes where landlords or letting agents seek to make claims for things like unpaid check-in or check-out fees.”

The only charges that can now be lawfully levied on tenants are for holding deposits, rent, tenancy deposits, default charges, early termination charges, tenancy amendments and utilities, communication services, TV licence and Council tax.

The deposit cap of five weeks rent (or six weeks where rents are £50,000 pa or more) remains unchanged. However if the deposit was above this cap before the 1st June 2019 and the tenancy was not renewed there is no requirement for the deposit to be reduced.

There are differences in Wales, where there is no tenancy deposit cap.