“Tenant Charges – Post Agreement”

Tenant Charges Part 2

Following the introduction of the Tenant Fees Act 2019 and Tenant Fees Ban, Letting Agents are no longer allowed to charge a certain fees unless they are ‘permitted payments’.  But this does not mean that an Agent cannot ask for certain monies, so here’s Tenant Charges 2 of our ‘Brief Guide for Tenants‘. (Landlords listen up too!)

Tenant Early Termination Charges

Ending a tenancy prior to its scheduled end date falls into the realms of breach of contract.  As such, the costs, which can include damages and compensation as well as legal costs, can be quite high.  They are not currently capped by law.  So its best to avoid these by sticking to your agreed tenancy period.

Have you been a great Tenant? Do you have a good relationship with your Landlord/Agent?  If you can also give as much notice as possible, then you are more likely to come to a reasonable arrangement with your Landlord with minimal expense.

Tenant Default Fees

Landlords and Letting Agents are allowed to charge a relatively small default fee in respect of a late rental payment.  However, this has to have been written into the tenancy agreement and the rent outstanding for at least 14 days.

The maximum amount chargeable is effectively interest on the outstanding amount.  This means it can be no more than 3% above the Bank of England’s annual base rate for each day the rent has been outstanding.  So, for example, if a £1300-a-month rent was one month overdue, then the maximum current default charge could be no more than about £4.

Additional Tenant Charges

If the Tenant is at fault for anything needing repair or replacing, these charges should, by law under the Tenant Fee Act 2019, be “reasonable”.  As an example, this may apply to fitting new locks or replacing missing keys. So ask around for similar quotes if you feel you are being overcharged.  Compare this to the proof of purchase receipt from the Landlord or their Agent.

See also Part.1: Pre-tenancy and agreement charges. (Holding deposit, Tenancy deposit, Utility charges and changes to tenancy agreement)