The ban on Tenant fees is now standard practice and Henry & James are proud to have absorbed most of the costs. Our fees have stayed the same and we are promoting a Free Property Management Service for up to six months. Contact our experienced Property Management team for more information.
The Tenant Fee Act has been coming for a long time and is the biggest industry change tenants have seen for many years. In some areas of London, people waited until the 1st June 2019 deadline before making their move. In Prime Central London, many private tenants unaffected by the decision to cut administration fees and cap deposits moved anyway. Here’s what you need to know about the permitted payments:
There are crucial differences between private tenants with traditional Assured Short-Hold Tenancy Agreements (ASTs) and company or common-law tenancies. Charges for credit checks, referencing, tenancy agreements, and for costs associated with the inventory are no longer permitted. Henry & James have, of course, complied with the new legislation and no longer charge fees to private tenants (on ASTs) since the 1st June 2019.
Please see a list of the permitted payments below:
Holding Deposit: 1 weeks rent.
Deposit: 5 weeks rent where the rental income is less than £50,000.00 per annum.
Deposit: 6 weeks rent where the rental income is more than £50,000.00 per annum.
Rent due for the rent periods as defined in the tenancy agreement.
Interest on rent due after 14 days. Calculated at 3% above the Bank of England’s Base Rate and backdated to the first day of arrears.
Invoices payable to third parties including council tax, utilities, communications services and TV licence.
Variation or assignment of the tenancy agreement. Capped at a total cost of £50.00 inc VAT.
Costs related to the loss and replacement of keys and security systems.
Costs associated with early termination of the tenancy.
For further peace of mind, Henry & James is a member of the Propertymark Client Money Protection Scheme and The Property Ombudsman Scheme (TPOS). You can find out more information on client money protection and the redress schemes online.