Contract Holder / Tenant - Fees & Charges

Please see below list of fees / charges that may / will apply if you proceed.

Click here to read a guide for tenants in Wales

Click here to read a guide for contract holders / tenants fees in Wales

On 1st September 2019, a new law came into place making it an offence for an agent or landlord to charge certain fees to (potential) contract holders / tenants.

What does this mean?

You can only be charged for rent, a security deposit, a holding deposit, payments in default if you breach your tenancy agreement and for payments in respect of utilities, council tax, a TV licence or communication services when renting under a standard occupation contract.

Anything else is considered a “prohibited payment” under the act. This is referred to in this guidance as “the ban”.

A landlord or agent cannot serve notice to evict a contract holder / tenant using the notice to evict (previous section 21 possession) procedure if they have required a prohibited payment which has not been repaid or have not returned a holding deposit where failure to repay amounts to a breach of the requirements of the Schedule 2 to the Act.

So what can letting agents ask a contract holder / tenant to pay (permitted payments) in accordance with the tenant fee act 2019 for a standard occupation contract (previously an assured shorthold tenancy)?

1. A payment for rent - paid in advance (prior to signing the occupation contract)

A contract holders / tenant's regular payment to a landlord for the use of property or land.

Rent must be the same across similar periods.

2. Security deposit / deposit - maximum is equivalent to 1 months rent + £100.00

A security or deposit is any sum of money intended to be held by the landlord or agent otherwise as security against any losses incurred through the actions of the contract holder / tenant. Typically, this would be equivalent to around one months’ rent.

A landlord or agent must put any deposit in a government-backed deposit scheme (TDP) if they let a property on an assured shorthold tenancy that started after 6 April 2007.

Although average security deposits typically tend to be the equivalent of one months’ rent, there may be circumstances which mean a landlord or agent asks for a slightly higher amount of deposit, for example, should you have a pet. This is permitted under the Act.

Click here to see more information on the Deposit Protection Service

3. Pet deposit - £100.00 minimum

A pet security deposit will be required should the contract holder / tenant wish to move in with their pet.

This is paid in addition to the deposit

4. Holding deposit - a maximum of 1 weeks rent (rent £pcm/4.35)

A holding deposit is a small deposit which is paid by a contract holder / tenant to secure a property. It allows the landlord or agent to check the suitability of a contract holder / tenant; pending successful completion of their suitability tests.

A holding deposit can be any amount up to a maximum of the equivalent of one weeks’ rent. This money will then be deducted from the remaining balance OR if false or misleading information has been given will not be refunded.

The holding deposit secures the property for a maximum of 15 calendar days from receipt, the tenancy must then start unless otherwise agreed.

The holding deposit can also be retained if the contract holder / tenant chooses not to continue with the standard occupation contract.

5. Payments in default (when the contract holder / tenant breaches the contract)

  • Late rent

    Late rent payments over seven days late will be subject to a rate of annual interest of 3% over the Bank of England base rate.

    This is then calculated daily from the rental due date to the rent received date.

  • Missed appointments

    Such as a landlord arranging with a contract holder / tenant for a contractor to carry out remedial work at a property, and a contract holder / tenant subsequently refusing entry, or not being home to allow entry, resulting in charges to the landlord.

    This will be billed at cost incurred.

  • Avoidable or purposeful damage to property

    Damage to a property caused by neglect or careless or wilful behaviour by the contract holder / tenant.

    This will be billed at the cost incurred.

  • Replacement keys

    Loss of keys by the contract holder / tenant requiring a landlord to arrange for the cutting of new keys and delivery of those keys to the contract holder / tenant. Which will be billed at cost.

  • Emergency/out of hours call-out fees

    Fees incurred as a result of a landlord arranging for someone to attend the contract holder's / tenant’s property at the request of a contract holder / tenant, such as a locksmith or an emergency glazier at the early hours of the morning, when the problem had been caused by the contract holder / tenant in the first place, such as a window broken on purpose, or keys locked inside a house. Which will be billed at cost.

  • Payments in respect of council tax

    A payment that a contract holder / tenant is required to make to a council in respect of council tax is a permitted payment.

  • Payments in respect of utilities

    A payment required under the standard occupation contract for or in connection with the provision of a utility (water, sewerage (including cesspits), gas, electricity or other fuel) is permitted. A payment towards energy efficiency improvements under a Green Deal Plan (within the meaning of section 1 of the Energy Act 2011) is permitted if it is required under a standard occupation contract and made in respect of the dwelling subject to the contract.

  • Payments in respect of a television licence

    A payment that a contract holder / tenant is required to make to the British Broadcasting. Corporation in respect of a television licence is a permitted payment.

  • Payments in respect of communication services

    Similarly, you can be charged payments for or in connection with communication service, if required under a standard occupation contract and made in respect of the property you are renting. This includes payments to enable internet access, cable or satellite television of for the use of a telephone other than a mobile telephone

Payment Method

Preferred payment is bank transfer

Bank details - HSBC

Sort Code - 40 22 15

Account number - 03663167

***Remember to put your name as a reference

SA Property are members of:

The Property Ombudsman, Client Money Protection, Deposit Protection Service and are on the approved code of trading standards

Click here to read a guide for tenants in Wales