What Landlords Can & Can’t Charge Lodgers
This particular article is only relevant to Landlords in England.
On 1st June 2019 the “Tenant Fees Act 2019” came into force, which is a legislation that focuses on banning and restricting letting agents and private landlords (in England only) from charging tenants & lodgers with certain fees, which includes referencing fees and limitations on how much can be charged for late rent penalties.
Permitted Payments
The legislation stipulates that the only payments chargeable to lodgers in connection with their licence, from the 1st of June, is as follows:
- Rent
- Deposit (capped at five weeks’ rent)
- Holding deposit (capped at one week’s rent)
- Payments to change the licence when requested by the lodger (capped at £50).
- Payments associated with early termination of the licence, when requested by the lodger.
- Payments in respect of utilities, communication services, TV licence and council tax.
- A default fee for late payment of rent and replacement of a lost key/security device, where required under a lodger agreement.
If any charges other than what is listed above is incurred by the lodger, such as ‘referencing fees’, ‘admin fees’, or costs associated with ‘professional end of tenancy cleaning’ services, then the landlord could face hefty fines for enforcing unlawful charges.
Please note, this legislation does not affect the landlords right to make claims against any damages or issues or disrepair (that don’t qualify as ‘wear or tear’) inflicted by the lodger. The “Tenant Fees Act 2019” focuses on banning lodger ‘fees’ and limiting deposits and holding deposits.
The full details of the legislation is available to read via this guide provided on the GOV.uk website.