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Writer's pictureNormette Homes
Jun 27, 20192 min read

June, a month for Landlords and Tenants to remember!

Mortgages and Brexit

1st June 2019, marked the official enforcement of the Tenant Fees Act (TFA). As mentioned in our previous blog regarding Tenant rights, this is likely to be one of many government legalisation that will be introduced over the next few years. 


Contracts signed before 1st June 2019 do not fall under the new TFA rule, however after 1st June 2020 any contract that has any banned tenant fees are deemed as void by the TFA


Changes for Landlords to know


From the 1st June 2019, Landlords can no longer provide agreements that include the following services:

  • Referencing

  • Credit and immigration checks

  • General Administration

  • Drawing up or renewing a tenancy 

  • Viewing Fees

  • Inventory charges

  • Check out fees, including on Saturdays (unless related to early terminated by the tenant)

  • Professional cleaning 

  • Fees via a third party

  • Credit checks

  • Gardening services

  • Acquiring a rent guarantor

  • Chimney sweeping services

If you happen to charge a tenant any of these banned fees, you would not be able to evict them with a section 21 notice until the charges are repaid. You also run the risk incurring a £5,000 fine as a civil offence. 



Changes to know for Tenant Fee Act (TFA)

Changes for Tenants to know


Please note, if you have signed a contract before 1st June 2019, unrestricted tenant fees still apply to you until 1st June 2020. 


Unfortunately, not all charges are excluded from this new legalisation, you should still expect to be charged for the following:


Late payment of rent, subject to the following scenarios;

  • If you’re 14 days late with your rental payment

  • Late payment fee is written within your agreement

  • Late payment fee is not above 3% APR (Bank of England base rate)

  • Charges can only be enforced by the landlord or agent, not both

Lost keys or fobs, subject to the following scenarios;

  • Lost key fee is written within your agreement

  • Charges need to be deemed reasonable, there is no explicit amount defined yet

Ending your tenancy early, subject to the following scenarios;

  • Charge will only occur if the landlord or agent agrees to the early termination or leave without notice

  • Charges can only amount to the loss incurred by the landlord or agent . This also needs to be seen as reasonable. 

Changing or reassigning your tenancy, subject to the following scenarios;

  • Charges are limited to £50 if you change a term within your tenancy

  • Charges are limited to £50 if you assign your tenancy to someone else

  • Landlord can only increase these charges if they can prove it cost more than £50

Payments of utilities, comms and council tax, if not included in the rent;

  • Utility payments i.e. gas, electricity and water

  • Communication services i.e. broadband, television license and phone

  • Any other bills that are not included within the rent

A refundable tenancy deposit

A refundable tenancy holding deposit

Up front rental payment


Resolve Disputes


Be aware that all disputes can be escalated to the trading standards at your local council or a redress scheme. If the landlord happens to break rules more than once, the council could impose a ban on their ability to rent out properties in the future.  


Landlords and Tenants alike can keep up-to-date with the latest industry changes and news by subscribing to our bi-weekly newsletter, visiting our website or following us on Linkedin.


We also have a cash reward referral scheme for anyone that connects us with landlords successfully.


 

Contact us


Normette Homes specialise in providing guaranteed rent and free management services.

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