Belgarum Estate Agents Limited operate in full compliance with the Tenant Fee Act 2019. As part of our obligations we wish to make clear the payments that are deemed ‘Permitted Payments’ under the Act, and under what circumstances those payments will be levied. It should be noted that the Tenant Fee Act 2019 only applies to Assured Shorthold Tenancies. As such, fees for other tenancy types still apply, and are listed in full below.
PERMITTED PAYMENTS FOR ASSURED SHORTHOLD TENANCIES
Holding Deposit Equivalent to 1 week’s rent The holding deposit is a payment made to reserve the property and remove it from the market pending application for tenancy, referencing and Right to Rent checks. This payment contributes towards the first month’s rent is forfeit in the event that the tenant withdraws their application or provides false or misleading information.
Security Deposit Equivalent to five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the annual rent is £50,000 or above A refundable Security Deposit will be taken prior to the commencement of the tenancy as security for the performance of any obligations or the discharge of any liability arising under, or in connection with, the tenancy.
Rent Subject to review at the end of each fixed period. Rent will be agreed in advance of the tenancy. The rent will be paid at regular intervals (usually monthly). The rent will be reviewed at the conclusion of each fixed term in accordance with the relevant clauses and provisions in the tenancy agreement.
Changing the tenancy £50 (inclusive of VAT) Where a tenant requests a change to the tenancy agreement (e.g. a change of sharer or permission to keep pets in the property) this fee is payable for the work involved in amending the tenancy agreement. Any changes are strictly subject to the Landlord’s consent. The Landlord is under no obligation to grant such changes.
Early Termination of Tenancy Equivalent to 1 month’s rent If the tenant wishes to leave before the end of their contracted period of tenancy, a fee is payable to compensate the landlord for any loss incurred, or the costs involved in sourcing a replacement tenant earlier than should have been necessary. Any termination is strictly subject to the Landlord’s consent. The Landlord is under no obligation to grant such changes.
Utilities, Council Tax, Communication Services and TV Licence Dependent on provider and usage Tenants are responsible for paying bills in accordance with the tenancy agreement which could include council tax, utility payments (gas, electricity, water) and communication services (broadband, TV etc).
Late Rent Default Charges Bank of England base + 3% In accordance with the relevant clauses within the tenancy agreement, the tenant must pay a default fee for late payment of rent (which is more than 14 days overdue). Default fees will accumulate from the first day the rent is late, but will not be levied until 14 days thereafter.
Replacement of Lost Keys, Security Device or Remote Control Direct cost of replacement items The tenant will pay for the replacement of any lost keys, security device, remote control or permit which gives access to, or is associated with, the subject property. Such costs are not possible to determine specifically, and will depend entirely on the cost incurred by the Agent or Landlord for a like-for-like replacement.
FEES FOR TENANCIES NOT COVERED BY THE TENANT FEE ACT 2019
Company £600 (inclusive of VAT) per property
Accompanied check-in fee (Optional) £150 (inclusive of VAT)
Future Landlord reference fee £30 (inclusive of VAT) per request
Check Out fee (tenant’s share) £150 (inclusive of VAT) per property
Lost security items £60 (inclusive of VAT) plus item cost
Out of hours services £60 (inclusive of VAT) plus any actual costs incurred
Early release fee Equivalent to 1.2 x month’s rent