The Tenant Fees Act 2019 came into effect on 1st June 2019. This Act controls what payments a landlord or letting agent may require "in connection with a tenancy of housing in England".
The Act applies to the following types of tenancy; assured shorthold tenancies, licences (lodger lettings for example), student lettings (provided by a specified educational institution).
Below is a summary of fees/charges that a tenant will/may still incur in accordance to John Joseph's fee structure:
- Tenancy/Security deposit at 5 weeks
- Holding deposit of upto £500.00
- Payment in the event of a default on rent which is outlined in the agreement.
- If rent is 4 or more days late, an administration charge of £30.00 is levied onto the Tenant.
- If rent is 5 or more days late, a fee to cover the Landlord's loss is added to the outstanding rental amount. This fee is at 6% above the Bank of England interest rate.
- If the rent is 7 or more days late, the interest will continue to be levied upon the tenant until the arrears are cleared. A further £30.00 administration fee will be added on the 7th day.
- Best efforts will be made to contact the tenant in the event of arrears.
- Payment on variation, assignment or novation of a tenancy
- Payment on termination of a tenancy