RENTING A PROPERTY: what's the cost? a frst offence the fine is up to 25,000. A repeat offence wthin 5 years is a crininal offence. The fine for a second offenoe is up to £30,000. Atemately the landiord could be prosecuted and utimately banned from renting out property. In addition the landord has to repay the tenant the barned payment plus interest On 1 June 2019 the Tenant Fees Act 2019 (TFA) came into force. This was to introduce a ban on untair letting fees paid by tenants for agents selected and appointed by landlords. The government said the TFA would incentivise lotting agents to compete for landlords' business, resuting in a better and more transparent service for everyone. As a resut there is now a ban on charging foes to tenants, including admin and agoncy fees. The TFA applies to assured shorthold tenancies, houses in mubple occupation and icences to occupy No tenant should be paying for taking reterences or credt checks or check-in charges or inventory or other admin toes. It their landord requires them to pay nonetheless, there are penaltes Are there any limits on what a landlord can charge now? Yes. The maximum deposit a tenant can be asked to pay is 5 weeks where rent is less than £s0,000 pa. The maximum holding deposit (to secure a property by a deadine) is 1 week's rent. Where parties enter a tenancy agreement by the deadine the holding depost must be returned to the tenant, or offset against rent or deposit. it must be returned it no tenancy agroement is entered by the deadine, unless the lack of agreement is the tenant's tault e.g. no right to rent, tenant puls out. Changes to the agreement are aready being reported as a 1oophole to recoup lost foes, for eample charging to allow pets, then incroasing the rent as wel For rent over 14 days late up to 3% over the Bank of England base rate can be charged as interest There can be no charge for chasing rent. For lost keys only a reasonable amount can be charged, which means limited to what is actualy costs the landord to replace What if a landlord still charges a tenant anyway? Are there any other consequences of Are agents' foes published? taking a banned payment? Section 83 of the Consumer Rights Act 2015 now requires letting agents to publish details of their foes If a landord requires the tenant to make a banned payment, or takes a bigger deposit than is alowed, the landlord cannot lator serve a vald 21 notice. That What payments are actually banned? means the landiord cannot get the tenant out via the usual notice to quit. Everything except payment for rent tenancy and holding deposits utlity bils, communication services. TV Licence and Counal Tax changes to the tenancy agreement requested by thetenant late rent lost keys (or other security devices) Hilary Messer Senior Associate Dispute Resolution Toam Gardner Leader T: 01628 502894 E: h.messer@gardner-leader.co.uk www.gardner-leader.co.uk The TFA creates a civi cffence. Enforcement is by Trading Standards. For coso RENTING A PROPERTY: what's the cost? a frst offence the fine is up to 25,000. A repeat offence wthin 5 years is a crininal offence. The fine for a second offenoe is up to £30,000. Atemately the landiord could be prosecuted and utimately banned from renting out property. In addition the landord has to repay the tenant the barned payment plus interest On 1 June 2019 the Tenant Fees Act 2019 (TFA) came into force. This was to introduce a ban on untair letting fees paid by tenants for agents selected and appointed by landlords. The government said the TFA would incentivise lotting agents to compete for landlords' business, resuting in a better and more transparent service for everyone. As a resut there is now a ban on charging foes to tenants, including admin and agoncy fees. The TFA applies to assured shorthold tenancies, houses in mubple occupation and icences to occupy No tenant should be paying for taking reterences or credt checks or check-in charges or inventory or other admin toes. It their landord requires them to pay nonetheless, there are penaltes Are there any limits on what a landlord can charge now? Yes. The maximum deposit a tenant can be asked to pay is 5 weeks where rent is less than £s0,000 pa. The maximum holding deposit (to secure a property by a deadine) is 1 week's rent. Where parties enter a tenancy agreement by the deadine the holding depost must be returned to the tenant, or offset against rent or deposit. it must be returned it no tenancy agroement is entered by the deadine, unless the lack of agreement is the tenant's tault e.g. no right to rent, tenant puls out. Changes to the agreement are aready being reported as a 1oophole to recoup lost foes, for eample charging to allow pets, then incroasing the rent as wel For rent over 14 days late up to 3% over the Bank of England base rate can be charged as interest There can be no charge for chasing rent. For lost keys only a reasonable amount can be charged, which means limited to what is actualy costs the landord to replace What if a landlord still charges a tenant anyway? Are there any other consequences of Are agents' foes published? taking a banned payment? Section 83 of the Consumer Rights Act 2015 now requires letting agents to publish details of their foes If a landord requires the tenant to make a banned payment, or takes a bigger deposit than is alowed, the landlord cannot lator serve a vald 21 notice. That What payments are actually banned? means the landiord cannot get the tenant out via the usual notice to quit. Everything except payment for rent tenancy and holding deposits utlity bils, communication services. TV Licence and Counal Tax changes to the tenancy agreement requested by thetenant late rent lost keys (or other security devices) Hilary Messer Senior Associate Dispute Resolution Toam Gardner Leader T: 01628 502894 E: h.messer@gardner-leader.co.uk www.gardner-leader.co.uk The TFA creates a civi cffence. Enforcement is by Trading Standards. For coso