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Compliance 5 min read

The Tenant Fees Act: the small print that still catches agents out

Most agencies know the headline rules. The grey areas — permitted payments, default fees, holding deposits — are where the fines still come from.

The Tenant Fees Act: the small print that still catches agents out

Most agencies know the headline of the Tenant Fees Act — that fees to tenants are banned, with a short list of exceptions. The fines we still see being issued are almost never about the headline. They are about the small print.

Holding deposits

Capped at one week’s rent and refundable in most circumstances. The conditions under which a holding deposit can be retained are tightly defined; written reasons must be given within seven days.

Default fees

Charges for lost keys or late rent are permitted, but only at reasonable cost and only with clear, written evidence behind each charge. “Standard” default fees set at a round number rarely survive scrutiny.

Permitted payments wording

Your tenancy agreement and any pre-tenancy literature need to be carefully worded so that no impression of a fee is created. Templates from a few years ago will need a fresh look.

An hour with a property solicitor reviewing your current paperwork is worth far more than any individual fine.

Outsource the legwork. Spend tomorrow winning new instructions.

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