Tenant Fees Act 2019 explained
Since 1st June 2019, landlords and management companies have had to abide by the Tenant Fees Act. Designed to reduce the financial burden on tenants and stop unscrupulous landlords from charging over the odds for tenancy agreements and other essential documents, the Act applies to rented property throughout England.
If you rent out a house or apartment in England, understanding how the Tenant Fees Act will affect you is essential if you’re going to stay on top of your finances. Here’s a quick guide to get you started.
What is the Tenant Fees Act?
The Tenant Fees Act has been designed to protect tenants and reduce the amount they have to pay for damages, contracts, and other related processes. Prior to the introduction of the act, tenants were more or less at the mercy of their landlords.
Many tenants were forced to pay over the odds for damage to their rented properties and many were forced to pay out of pocket for background checks, searches and contracts.
Since the introduction of the Tenant Fees Act, landlords in England have only been able to recover ‘reasonably incurred costs’. What’s more, they now have to provide evidence of these costs before they can get the money back from their tenants.
As @HomesProperty says, “The changes will help put an end to the practice by some landlords of overcharging renters for minor damages or presenting them with an exaggerated bill to replace an item, such as a £60 charge for a new smoke alarm.”
Which properties are impacted?
The Tenant Fees Act applies to most rental properties in England. This includes student accommodation, shorthold tenancies and licences to occupy housing in the private rented sector.
Types of fees that are not covered by the act include holiday lettings, social housing, and assured tenancies. This means that if you rent property long term, you’ll almost certainly have to abide by the new rules.
How can CheckedInn help?
If you own a rental property in the UK, you need to ensure you’re following these new rules if you want to stay on the right side of the law. If you fail to comply with the Tenant Fees Act, you could face a fine of up to £30,000.
The best way to ensure your rental property toes the line is to hire a reputable management company to look after it for you. Here at Checked Inn, we make sure we stay up to date with all the latest legislation. This means the landlords we work with can be confident that, as well as being well managed and profitable, their properties meet relevant laws and guidelines. This takes the strain out of owning a rental property and allows our landlords to get the maximum benefit from their investment with minimal hassle.
If you’d like to find out more about the services we offer or learn how we can make your property more profitable, explore our site or get in touch with a member of our expert team.