As you will no doubt be aware – landlords and agents’ ability to charge fees is going to be seriously curtailed after 1 June 2019 when the Tenant Fees Act 2019 comes into force.
This will basically just allow you to charge:
For example, you can charge interest at 3% above bank base rate if the rent remains unpaid for 14 days, and you can charge a £50 fee (including VAT) if the tenant requests an amendment to the tenancy agreement.
In order to make life easier for you, we have now produced a schedule of permitted fees for your reference and for you to provide to your tenants.
There are actually two schedules which are worded very slightly differently:
But they are the main part exactly the same.
We suggest you hand a copy to your tenants at the time (or preferably before) they sign their tenancy agreement and record this in the New Tenancy Receipt form (which has now been amended to provide for this).
Logged in Landlord Law members will find the schedules here.
Although at the time of writing this the Tenant Fees Act 2019 has not yet come into force, it is as well to get your documentation in order in advance of this. If ‘prohibited payments’ are taken after 1 June you can be prosecuted and fined, and it will affect your ability to use section 21.