As you may have read from previous correspondents sent out, the tenant fee ban is now in effect as of the 1st June. This means for all new tenancies on an AST, landlords are now liable for the cost of the inventory check-in and check-outs, and deposits will be capped at 5 weeks. There is a raft of other changes, but these are the most prevalent ones for our landlords. To recap, here is a bit about the tenant fee ban:
The Tenant Fees Act bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England. The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout a tenancy. The landlord will be responsible for paying for the service, ensuring the fees charged reflect the real economic value of the services. The only payments that landlords or letting agents can charge to tenants for new contracts are rent, a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above, a refundable holding deposit capped at no more than 1 week’s rent, payments associated with early termination of the tenancy when requested by the tenant, payments in respect of utilities, communication services, TV licence and Council Tax and finally a default fee for late payment of rent and replacement of a lost key/security device.