Tenant Fees

TENANT FEES:        Letting Fees information

Just Lettings (Norfolk) Limited have produced this guide to inform Tenants of the Tenant Fee Act 2019 which became law as from 1st June 2019 and the fees permitted in compliance with the Act.

Acceptable Fees:

1 months Rent in advance.

Security Deposit capped at a maximum equivalent to 5 weeks Rent. where rent is below £50000.00 per annum(Example: 1 months rent x 12 months divided by 52 weeks x 5 weeks = Deposit amount).  

When an agent has taken 6 week deposit previously before the Tenant Fee Act 2019 will be allowed until the end of that tenancy. However, once it is renewed, the difference will have to be refunded. Statutory or periodic tenancies will be considered as an extension of the original tenancy.

The Letting Agent/Landlord will not be able to charge Tenants a separate deposit for having a Pet/s at the property.  However, Letting Agents/ Landlords can charge an increased rent provided it is stipulated in the property advert that an increased rent will apply if the tenant has pets.

Pest control costs cannot be charged during the tenancy but they can be recovered from the Security Deposit.

Where a Letting Agent/Landlord has taken a 6 week deposit previously before Tenant Fee Act 2019 will be allowed until the end of that tenancy. However, if the Tenancy is renewed, the difference will have to be refunded. Statutory or periodic tenancies will be considered as an extension of the original tenancy.

Holding Deposit

To proceed with an application to rent a property a Holding Deposit will be required. The amount of Deposit will be equivalent to 1 weeks rent of the property.

Calculation 1 months rent x 12 months divided by 52 weeks (Example. Rent £700.00 per month rent x 12 = £8400.00 divided by 52 = £161.54 Deposit)

After the successful completion of referencing each applicant over the age of 18 who will reside in the property the Deposit will be deducted from the first months Rent payment. 

The Holding Deposit reserves the property for up to 15 days during which time the Tenancy Agreement should commence. However, if the applicants and Letting Agent agree to a time extension in writing the 15 days can be extended until the Tenancy Agreement is signed.

If the applicants do not proceed with a Tenancy of the property, the deposit may be withheld. Reasons for withholding holding deposit:

• If the tenant withdraws from the Tenancy process.
• If the applicant/s fails the Right to Rent checks
• If the applicant/s provide/s false or misleading statement (lying about earnings or County Court Judgements (CCJs ) etc
• Missed agreement deadline (15 days - can be extended by mutual agreement) caused by tenant or their referees

The Letting Agent must give reasons in writing within 7 days as to why the Holding Deposit has been withheld.

If the applicant/s fail referencing after declaring proveable facts or the Letting Agent/Landlord withdraw from continuing with the proposed Tenants application the Holding Deposit will be returned to the applicant/s.

DURING THE TENANCY THE FOLLOWING CHARGES MAY BE APPLIED AS PERMITTED PAYMENTS AS DEFINED BY THE TENANTS FEE BAN ACT 2019: 

Tenancy Renewal/Amendment                  £ 49.00 

Tenancy Variation                                      £ 49.00

Substitution of Tenant                                £ 49.00

Processing and associated paperwork and referencing to replace an existing Tenant named on the Tenancy Agreement. This is subject to the written consent of the Landlord.

Late Rent Accrued Interest

Interest calculated at 3% above Barclays Bank Base rate will be applied to the tenants Rent Account for any rent payments that remain unpaid in excess of 14 days from rent payment due date.

Early Termination of Tenancy Agreement.   £220.00 + Rent payable at a daily rate up until new Tenants take occupation.

Any request to release a existing named tenant from a current Tenancy Agreement will have to be discussed with the Landlord, who has the final decision. If the Landlord should agree to releasing a Tenant early, then the Landlord will do so based on the Tenancy Agreement terms and conditions. Our fee is for negotiating such a release and drafting the required documentation will include the marketing and re-letting the property to new tenants, but the cost will not exceed the amount of Rent due up until the end of the Tenancy Contract.

Loss of Property Key

If the tenant looses or misplaces a key or other security device giving access to the property the hold a Tenancy there will be a reasonable charge at cost for providing a replacement key. The charge will not exceed £15.00. We will only provide this service during normal office working times of 0900 - 1800 Monday to Saturday. Outside of these times the tenant is responsible for paying a Locksmith contractor direct all costs and call out charges. If the Tenant changes the lock mechanism they are required to provide 2 additional keys to the new locks installed to the Letting Agents within 2 days of the new locks being fitted.

Transition Period -

12 months from 1st June 2019 to bring all current tenancies (set up prior to 1/6/19) up to standards of the Tenant Fee Act 2019 

The Tenant Fee Act 2019 is not retrospective and only applies to new tenancies set up after 1st June 2019 and renewals after this date.

Periodic tenancies classed as continuation of existing tenancies. But fees will only be chargeable if they're written into the tenancy agreement. However, agent can form a separate agreement between Tenant and Letting Agent/Landlord before the Tenant Fee Act 2019 and they will still apply as though they were in the tenancy agreement.

Only Assured Shorthold Tenancies and Licenses to Occupy fall under the the Tenant Fee Act 2019. If annual rent is more than £100k per annum, it is no longer an AST - it's a premium let and the Tenant Fee Act 2019 does not apply.

Company lets are exempt from the Tenant Fee Act 2019. The company will not be allowed to charge tenants fees if they issue a license to occupy or tenancy agreement to their members of staff moving into the property.