What the Tenant Fees Act allows
Since 1 June 2019, letting agents in England can only charge tenants for a defined list of 'permitted payments'. Anything else — admin fees, referencing fees, inventory fees, check-out fees — is unlawful.
- Rent.
- A refundable holding deposit, capped at one week's rent.
- A refundable tenancy deposit, capped at five weeks' rent (six weeks if the annual rent is £50,000 or more).
- Reasonable charges for tenant-caused damage, lost keys or late rent (after 14 days, at 3% above Bank of England base rate).
- Reasonable charges for variation, assignment or early termination of the tenancy at the tenant's request.
- Council tax, utilities, broadband and TV licence (paid directly to the supplier, not the agent).
Worked example — £1,200 pcm let
Before move-in, you would expect to pay: a holding deposit of £277 (one week's rent, equivalent to £1,200 × 12 ÷ 52), the first month's rent of £1,200, and a tenancy deposit of £1,384 (five weeks' rent). The holding deposit is then deducted from the first month's rent.
