Tired of sneaky fees when renting in London? It feels like every corner you turn, someone's trying to charge you for something. The Tenant Fees Act 2019 was designed to stop unfair charges. This guide breaks down what's legal, what's not, and what you should do if you are asked to pay illegal fees.

The Tenant Fees Act 2019: Your Shield Against Unfair Charges

The Tenant Fees Act 2019 protects renters from being charged rip-off fees. Landlords and letting agents must follow the rules. This act makes renting more affordable and transparent.

What the Act Covers

The Act covers most assured shorthold tenancies. This includes houses, flats, and even student housing. If you have this type of agreement, you are protected. The Act doesn't cover all types of rental agreements, but most common ones are included.

Penalties for Non-Compliance

Estate & Letting Agents London who break the law face big fines. Local authorities can also take trading standards actions. Tenants can report agents charging illegal fees to their local council. Don't stay silent; report these unfair practices.

Permitted Payments: What You Can Legally Be Charged

Some payments are still allowed. Landlords and agents can collect these. Know these, so you aren't overcharged.

Rent

Rent is a permitted payment. You typically pay it monthly in advance. The amount should be clearly stated in your tenancy agreement. Make sure you understand when rent is due to avoid late payment issues.

Refundable Tenancy Deposit

Landlords often require a deposit. It covers damages or unpaid rent. The deposit is capped at 5 weeks' rent if your annual rent is under £50,000. If it's £50,000 or more, it is capped at 6 weeks' rent.

Refundable Holding Deposit

A holding deposit reserves a property. It's capped at one week's rent. Landlords must return it unless you decide not to rent the place. If they decide not to rent to you, they must also give it Estate & Letting Agents London back, or provide a valid reason for withholding it.

Payments in Default

You might face charges for late rent. Landlords can charge interest, but it’s capped at 3% above the Bank of England base rate. If you lose keys, they can charge for replacements. These costs must be reasonable.

Payments for Variation, Assignment or Novation

Tenants sometimes request changes to the tenancy agreement. Agents can charge for this. The fee must be reasonable.

Payments for Early Termination

If you end your tenancy early, you might face fees. Landlords can only charge for reasonable losses. This covers the cost of finding a new tenant.

Illegal Fees: What Landlords and Agents Cannot Charge

Many fees are now banned. The Tenant Fees Act made these illegal. Understanding these fees is crucial.

Administration Fees

Agents cannot charge administration fees. No more paying for paperwork. Charges for tenancy agreements are also banned.

Inventory Fees

Landlords can't charge tenants for inventories. They must cover this themselves. This includes checking the condition of the property.

Check-in and Check-out Fees

These fees are now the landlord's responsibility. Tenants shouldn't be charged for checking in or out. This has always been a major point of contention.

Professional Cleaning Fees

Landlords can't demand professional cleaning unless needed. The property should be left in a similar condition as the start. Normal "wear and tear" is expected.

Gardening Fees

You shouldn't be charged for gardening. Unless it's in the agreement. Make sure to read the contract carefully.

Referencing Fees

Referencing fees are banned. Landlords must cover these costs. Agents cannot pass this cost to you.

What to Do If You're Charged an Illegal Fee

Don't panic if you face an illegal fee. Take action. Here's what to do.

Question the Fee

Politely ask for clarification. Cite the Tenant Fees Act. Many times, it is a simple mistake that can be easily resolved.

Negotiate with the Agent/Landlord

Try to compromise. This works if the fee is borderline. Explain your understanding of the law.

Formally Complain

Follow the agent's complaints procedure. Escalate to a redress scheme if needed. The Property Redress Scheme and The Property Ombudsman can help.

Report to Trading Standards

Local authorities can investigate. They can prosecute agents charging illegal fees. They'll listen to your side of the story.

Consider Legal Action

As a last resort, consider small claims court. This can recover illegal fees. Gather all your evidence first.

Common Scenarios and How to Handle Them

Let’s look at some common issues. Here's how to handle fee disputes.

"Holding Deposit" Disputes

A landlord can keep a holding deposit if you back out. They must return it if they reject you without a good reason. Make sure the grounds for the deposit are clearly laid out.

End-of-Tenancy Cleaning Disputes

"Fair wear and tear" is normal. Damage is not. Use the inventory as evidence.

Late Rent Payment Disputes

Understand permitted interest charges. Communication is key. Contact your landlord if you're struggling to pay.

Conclusion

Knowing your rights as a tenant is vital. The Tenant Fees Act protects you from illegal charges. Report illegal fees. Seek advice when unsure. Don't let landlords get away with breaking the rules.