Harcourt Terrace Chelsea SW10

TENANT FEES AND ADDITIONAL COSTS

In accordance with the Tenant Fees Act 2019, the rules for how fees will be charged for Assured Shorthold Tenancies (AST’s) are different to how fees will be charged for Non-Housing Act (NHA) tenancies.

Housing Act Tenancies: Assured Shorthold Tenancies (AST)

An AST is the most common type of type of tenancy if you rent from a private landlord or letting agent.

You usually have an AST if:

• The rent is less than £100,000 per year
• You (the tenant) are an individual and are using the property as your main home
• Your landlord doesn’t live in the property
• The property is privately owned

Non-Housing Act Tenancies (NHA): Also known as ‘Common Law Tenancies’

An NHA tenancy is typically created if the rent is over £100,000 per year, or if it is a company tenancy.

A company tenancy is when a company takes on a residential tenancy agreement as the tenant. The company employee will live in the property as a ‘permitted occupant’.

An NHA tenancy would also be created if the property isn’t the tenant’s main home.

Housing Act Tenancies / Assured Shorthold Tenancies (AST)

In accordance with the Tenant Fees Act 2019, permitted payments by a tenant to a landlord or agent are listed below.

All fees are shown inclusive of VAT.

• A refundable holding deposit (to reserve a property) capped at one week’s rent. This will be put towards your first rent payment due prior to the start of the tenancy. Please note: this will be withheld if any relevant person (including any guarantor(s) withdraw from the tenancy, fail a Right-to-Rent check, provide materially significant false or misleading information, or fail to sign their tenancy agreement within 15 calendar days (or other deadline as mutually agreed in writing).
• Rent
• A refundable deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or more.
• Payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher.
• Payments associated with early termination of the tenancy when requested by the tenant – these include all costs, fees and charges incurred by the landlord for allowing early termination including the agents existing or re-letting fees.
• Payments in respect of utilities, communication services, TV license and Council Tax.
• A default fee for late payment of rent and replacement of a lost key / security device, where required under a tenancy agreement.
• Green Deal charge.
• Stamp Duty Land Tax – where the cumulative rent exceeds £125,000.

Non-Housing Act Tenancies

All fees are shown inclusive of VAT.

• Holding deposit equivalent to one week’s rent. This will be put towards your first rent payment due prior to the start of the tenancy. We will retain your holding deposit should you withdraw from the tenancy.
• Rent.
• £36 per reference check (both for individuals and companies).
• A deposit usually equivalent to six weeks’ rent, or if you have a pet this will usually be equivalent to eight weeks’ rent.
• The cost of the check out of the inventory and schedule of condition at the end of the tenancy – the cost of this will vary depending on the size of the property.
• Payments associated with early termination of the tenancy when requested by the tenant – these include all costs, fees and charges incurred by the landlord for allowing early termination including the agents existing or re-letting fees.
• Payments in respect of utilities, communication services, TV license and Council Tax.
• A default fee for late payment of rent and replacement of a lost key / security device, where required under a tenancy agreement.
• Stamp Duty Land Tax – where the cumulative rent exceeds £125,000.

Russell Simpson is a member of ARLA Propertymark and therefore endeavours to comply with ARLA Propertymark’s code of Practice. Further information, including the code of practice, can be obtained directly from the organisation’s website – www.arla.co.uk

As a member of ARLA Propertymark, Russell Simpson is also a member of ARLA’s Client Money Protection (CMP) scheme. A copy of our membership certificate can be seen here.

Russell Simpson is a member of The Property Ombudsman (TPO) who can provide independent redress. More information on TPO can be found at their website – www.tpos.co.uk

LANDLORD FEES

For more information about landlord fees, please click here.