Tenant Fees Bill: what landlords need to know

As tenants rejoice at further protections from rogue rental owners, how will the Tenant Fees Bill affect landlords?

It’s been gradually moving through Parliament, with its second reading taking place in the House of Lords this week. Now the Tenant Fees Bill, which is set to save renters £240m per year, has been amended to save renters forking out for more unnecessary charges.

The bill has been extended to protect tenants from having to pay excessive sums for minor damages, something that has been exploited in the past – in some cases tenants have been charged for broken smoke alarms, when in fact local councils will replace these for free.

READ MORE: Your 12-point checklist for choosing a buy-to-let property

Announcing the latest amendment, Rishi Sunak MP, Minister for Local Government, said: “Tenants across the country, whatever their income, should not be hit with unfair costs by agents or landlords.

“This government is determined to make sure our housing market works and this new provision in the Tenant Fees Bill will make renting fairer and more transparent for all.”

The Tenant Fees Bill aims to save tenants big sums at the start and end of their tenancy as well as throughout their rental period. Now set to become law, here are some of the things landlords should be aware of.

Breakages may cost you

Under the new default fee provision, a landlord or agent will only be able to recover reasonable incurred costs for damage to their property and/or possessions. In addition, landlords will need to provide evidence of these costs to the tenant before they can impose any charges.

All fees, up front

From now on, potential tenants will be able to see how much a new home will cost them, with no hidden charges. The bad news for landlords is that any estate agency fees will come out of their pockets.

Limited deposits

For several years now deposits have been guarded by the Tenancy Deposit Protection scheme, but now there will also be a cap placed on these fees and they will not be allowed to exceed 6 weeks’ rent.

Repay quickly

In addition to the latest amendment, landlords must repay any fees that have been unlawfully charged within a reasonable amount of time.

The bill has moved for debate to the House of Lords, you can follow its progress on the www.parliament.uk.

READ MORE: Renting to students - a landlord's guide to student buy-to-let