What is the Tenant Fees Act?

The Tenant Fees Act 2019 stops landlord and agents charging private rented sector tenants for specific charges in England. The positives are Tenants will be able to see, at a glance, how much a given property will cost them i.e. the advertised rent with no hidden extra costs.

How does this impact you?

An Impact Analysis by the Ministry of Housing and Communities and Local Government (2018) showed the change would result in a Net Cost of £340.3m to businesses per year.  How will this cost be covered?  This is something you can discuss with us at Rose.

What are landlords permitted to charge?

Under Section 2 of the Tenant Fees Act 2019 all charges are prohibited unless specifically listed as a permitted payment:

  • Rent
  • Utilities
  • Holding deposit (up to 1 week’s rent)
  • Security deposit (up to 5 weeks’ rent, or 6 weeks’ if annual rent is over £50k)
  • Default fees such as: rent arrears, lost keys, other security devices, change of sharer, novation of contract, surrender of tenancy, charges associated with green deal or energy efficiency scheme

What’s prohibited? Some examples are:

  • Applications, general admin., contract negotiation and tenancy set up costs
  • Referencing
  • Inventory
  • Check in and check out
  • Contract renewal
  • Saturday move-in service

There is also a specific provision within the Act stating, “You cannot charge a higher rent in any one period to any other period in the tenancy”. You will not be able to cover your costs by charging a higher rent for the first month, or any other month for example.

Have you got existing tenancies?

There will be a transitionary 12-month period ending on 31st May 2020.  During this time, you can continue to charge fees already written into your existing tenancy agreements.

How we can help?

Recoup your increased costs

Referencing, inventory, check in/out and contract renewals are some of the vital aspects of a high-quality long-lasting tenancy. If landlords are now expected to pay more out of their own pocket to cover these costs, this will inevitably affect your bottom line.

We can help renegotiate your contract terms, professionally and effectively, to ensure your costs and investment are secured.

The chief executive of HomeLet, Martin Totty, commented:

“Whilst the aim of the Tenant Fees Act is to reduce the costs that tenants can face, landlords still need to cover the costs that are incurred when setting up a tenancy. With landlords already feeling the impact of taxation changes, the expectation is that costs will be passed back to tenants through higher rents, particularly for new tenancies”

This statement is backed up by the latest data from HomeLet’s Rental Index, showing UK rents for new tenancies have begun to rise at a rate not seen in the market for over two years. The annualised picture shows rental values having increased at a higher rate than was seen in 2018, rising by 3.3% in the last 12 months.

7 days a week coverage

We know you’re busy during the week and then have to catch up over the weekend. At Rose, we are available every day to ensure our landlords and tenants receive the best possible service and queries are actioned quickly and effectively.

Local and Online

We are a traditional Estate Agent with an online punch.  We are able to provide high quality service and charge less because our business model and targets are based on customer service rather than sales.  Our aim is to support your bottom line, by being available when you are and providing efficient action as soon as you need it.


We have a recommended HMO Property Management company who can help you assure your rent and decrease the stress. Call today so we can help you with effective management and advice.

Find out how we can do more to support your investment and time.

Call us on 01483-789-007 or visit http://www.rose-ea.co.uk