Whether you’re renting for the first time or you’re a seasoned tenant, it’s important to understand what costs may apply during the letting process.
Since the introduction of the Tenant Fees Act 2019 in England, most upfront fees charged to tenants have been banned. However, there are still a few permitted payments that landlords and agents are legally allowed to charge. Here’s a breakdown of what you can expect:
1. Rent
The amount agreed in your tenancy agreement, typically paid monthly.
2. Tenancy Deposit
A refundable deposit (usually up to 5 weeks’ rent for properties under £50,000 annual rent or 6 weeks for higher-value properties) held to cover any damages or breaches of the tenancy.
3. Holding Deposit
Up to one week’s rent to reserve a property. This is deducted from your first month’s rent or returned, provided you proceed with the tenancy.
4. Changes to the Tenancy
If you request to make a change (e.g. swapping a tenant), a charge of up to £50 (or higher if reasonable costs can be demonstrated) may apply.
5. Early Termination
If you ask to leave before the end of your fixed-term contract, you may be liable for the landlord’s re-letting costs or rent until a new tenant is found.
6. Utilities, Council Tax & Communications
You’ll be responsible for paying utility bills, council tax, TV licence, broadband, etc., unless otherwise agreed.
7. Late Payment of Rent
Interest may be charged at 3% above the Bank of England base rate for rent unpaid more than 14 days overdue.
8. Lost Keys or Security Devices
You may be charged a reasonable cost for replacing lost keys or security devices (e.g. fobs).