Tenant Permitted Fees
When applying to rent a property, please be aware of the following permitted fees for all AST signed on or after the 1st June 2019.
A refundable Holding Deposit of no more than one week’s rent:
A holding Deposit is a payment made by a tenant to a landlord (or to an agent acting on the landlord’s behalf) to reserve that property.
The Bill requires agents and landlords to refund the Holding Deposit except in circumstances where the tenant (including any guarantor(s)) withdraws, fails a Right to Rent check ,provides false or misleading information which the landlord is reasonably entitled to consider in deciding whether to grant the tenancy because this materially affects their suitability to rent the property or fails to complete the required paperwork including signing of the Tenancy Agreement within the mutually agreed Deadline for Agreement date. Where no Deadline for Agreement date has been made in writing the Bill dictates this date to be defaulted to 15 calendar days after the holding deposit has been paid.
Landlords may ‘repay’ the Holding Deposit by allowing the tenant to deduct the equivalent sum from the first payment of rent or the Tenancy Deposit. If the Holding Deposit is applied to the Tenancy Deposit, under the
deposit protection requirements, that money is classed as received on the date the tenancy agreement was signed.
A refundable Tenancy Deposit:
Up to 5 weeks’ rent per tenancy with a Rent under £50,000.00 PA.
Up to 6 weeks’ rent per tenancy with a Rent of or over £50,000.00 PA.
A Tenancy Deposit is money held by the landlord (or agent acting on the landlord’s behalf) as security during the period of the tenancy and reserved for any damages or defaults by the tenant. All Tenancy Deposits are held in accordance with the Deposit protection scheme.
A tenant’s regular payment to a landlord for the use of the property.
Payments in the event of a default:
Landlords and letting agents may require a tenant to make a payment in the event of a default/Breach of Tenancy (e.g. anti-social behaviour, damaged caused by the Tenant, unpaid Rent, Lost Key). The amount charged cannot exceed the loss suffered by the landlord or Agent.
If rent is outstanding for more than 14 days, Interest at 3% above the Bank of England Base Rate from Rent Due Date until paid in order to pursue non-payment of rent.
Lost Key(s) or other Security Device(s)
Tenants are liable to the actual cost of replacing any lost key(s) or other security device(s).
If the loss results in locks needing to be changed, the actual costs of a locksmith, new lock and replacement keys for the tenant, landlord any other persons requiring keys will be charged to the tenant.
Charging to vary a tenancy:
When a tenant has requested it, landlords and agents can charge to vary, assign or replace a tenancy. Such fees are capped at £50 unless the landlord can demonstrate that greater costs were incurred.
Payment on termination of a tenancy:
Agents and landlords can require a tenant to make a payment for an early termination of the tenancy agreement at the tenant’s request. The payment cannot exceed the loss suffered by the landlord or reasonable costs incurred by the letting agent.
Payments for the provision of utilities:
Agents and landlords are permitted to charge tenants fees associated with utilities, such as electricity, gas or other fuel, water or sewerage, if this is clear in the tenancy agreement.
Council Tax payments:
Letting agents and landlords may require tenants to pay the Council Tax on the property they rent.
Payments for a television licence:
A payment that a tenant is required to make to have a television licence is a permitted payment if the tenant is
required by the tenancy agreement to make the payment.
Agents and landlords are permitted to charge tenants fees associated with communication services, such as telephone (other than a mobile), internet, cable/satellite television, if this is clear in the tenancy agreement.
Company Lets Fees
When applying to rent a property, the following fees are payable
Our Agency fee is 75% +VAT of a month’s rent (90% inclusive of VAT)
As independent Agents we can tailor our service to meet your needs and budget. With a fee’s starting as low as
Property Management Service from 10% + VAT (Total 12%) of a Monthly Rental
Let Only Service for Sole Agency from 50% + VAT (Total 60%) of 1 months Rental (Minimum fee of £400.00 + VAT (Total £480.00)) & Joint Agency from 75% + VAT (Total 90%) of 1 months Rental (Minimum fee of £600.00 + VAT (Total £720.00))
Contract Renewal or Part Change of Tenancy Service from 40% +VAT (Total 48%) of 1 months Rental (Minimum fee of £300.00 + VAT) (Total £360.00))
Referencing Service from £35.00 + VAT (£42.00) per person.
Client Money Protection Scheme (CMP)
As Agents we are members of Propertymark Client Money Scheme, Arbon House, 6 Tournament Court, Edgehill Drive, Warwick, CV34 6LG
For a copy of Propertymark’s Conduct and Membership Rules - CLICK HERE
For a copy of our CMP certificate - CLICK HERE
If you require clarity on our fee structure, please speak to a member of staff who will be happy to talk it through with you.