Fees

Tenant fees

The Tenant Fees Act 2019 places strict laws on what a tenant can, and cannot be charged. A landlord or agent can only charge what is known as a ‘permitted payment’ and this permitted payment must be in your contract. 

What can I be charged for?

Rent 
You still need to pay rent, but you can’t be charged a higher amount for the first month to make up for the fees.

Holding deposit
A landlord or agent can still ask for a holding deposit to take the property off the market, but it cannot be more than the value of one week of rent. See the section on holding deposits for more information.

Security deposit 
Cannot be more than the value of five weeks of rent or six weeks if the annual rent is over £50,000. See the section on security deposits for more information.

Lost keys
You can be charged the reasonable cost to replace keys. The landlord or agent should be able to evidence this cost with invoices or receipts.

Tenancy changes
If you need to change the tenancy agreement (such as adding a replacement tenant), you can be charged reasonable costs (around £50).

Early termination
This charge should not exceed the loss the landlord/agent has incurred (evidence should be provided to demonstrate losses).

Anything else? 
You can still be required to pay other costs related to a tenancy such as utility bills and council tax. The landlord/agent can still take reasonable costs for damages, unpaid rent and bills from your security deposit. 

What fees are prohibited by law?

These are some examples of things a landlord or agent can no longer charge for:

• Fees for viewing a property
• Tenancy set-up fees 
• Admin fees
• Inventory fees
• Check-in/ check-out fees
• Professional cleaning (although you are responsible for returning the property in the condition you found it – aside from fair wear and tear)
• Gardening services

Does this apply to my contract?

All tenancies and licences must comply with the Tenant Fees Act regardless of their start date. 

What happens if I’m charged a prohibited fee?

It should be refunded to you within 28 days of paying the fee. If still not returned, the landlord/agent is breaking the law and you can report them to your local council’s Trading Standards. The financial penalty for breaching the law is up to £5,000 for a first offence, and up to £30,000 for further offences.

References

A good way to improve your bargaining position with landlords is to persuade them that you are going to be an excellent tenant.

One way to do this is by getting a reference from a previous landlord or your hall of residence.

Landlords are not legally obliged to provide a reference. If your landlord will not provide you a reference, you may be able to use other references, for example from previous or current employers (including from part-time work). 

Guarantors

Most landlords and agents will require you to provide a guarantor.

A guarantor is someone who agrees to pay your rent and reimburse the landlord for any damage caused at the property if you, as the tenant, fail to do so.

A guarantor is usually required to:

• Be resident in the UK
• Complete a reference check

For many students, their guarantor might be a family member or family friend.

Guarantor agreements are legally binding. It is a good idea to get the guarantor agreement checked with an advisor before it is signed.

If you are entering into a joint tenancy, your guarantor will most likely be guaranteeing the rent for the whole property and not just your share of the rent. 

Where possible, it is better for your guarantor if the guarantor agreement:

• Limits their liability to just your share of the rent
• Limits the guarantee to a set period of time, i.e. the fixed term of the contract
• Limits the guarantee to only the rent and does not also include the costs of damage or disrepair

College or University Guarantor Schemes

Your College or University may be able to act as your guarantor. Ask your accommodation office, students’ union or advice and welfare service if they run a guarantor scheme for students. 

Please note: it is at the discretion of a Landlord (or Agent) whether to accept a Guarantor scheme. Please be sure to enquire and read all relevant information in advance.

What if I don’t have a guarantor?

You may be asked to pay rent in advance, e.g. three or six months. If you pay rent in advance you may find you have less bargaining power if something goes wrong with the flat and you are trying to get the landlord to carry out repairs. You would also be vulnerable in the rare event that a property is repossessed due to a landlord defaulting on their mortgage payments, see our section of mortgage repossessions for more details.

Alternative options

UK, EU and International students alike have found providing a qualifying UK guarantor a hurdle when renting in the private sector. We have therefore partnered with Housing Hand to help give an alternative option to students paying rent in advance. At a discounted fee, Housing Hand can stand as the guarantor for students who are unable to provide one. For more information about this guarantor service, visit our main Guarantor webpage and dedicated Housing Hand link. 

Only My Share is another paid service offered by the Housing Hand Group, that protects you (or a guarantor) from having to pay other housemates’ rent arrears when sharing a property and are bound by joint and several rent liability.

By acting as your guarantor for a fee of £99 a year, Only My Share can be responsible for up to £10,000 worth of housemate arrears in a 12-month tenancy. Using Only My Share can reduce the risk of you having to pay other tenants’ missed rent, meaning you are only liable for your share of the rent.