tenant fees
📖 What is tenant fees? Meaning and definition
In the UK, the term 'tenant fees' primarily relates to payments made by a tenant or prospective tenant to a landlord or letting agent. The Tenant Fees Act 2019 is a key piece of legislation that governs what payments are permitted and what are prohibited. This Act aims to protect tenants from excessive or unfair charges beyond rent and security deposits.
Prohibited payments can include various charges that are not explicitly allowed by the Act. If a tenant makes a payment that is later deemed prohibited, they can apply to a First-tier Tribunal for its recovery. The Tribunal will then assess whether the payment falls under the definition of a prohibited payment or a holding deposit that should be returned.
A common example of a tenant fee is a 'holding deposit', which is paid to reserve a property before a tenancy agreement is signed. The Act specifies conditions under which a holding deposit must be repaid to the applicant. If a landlord or agent fails to repay a holding deposit when required, the tenant can seek an order for its recovery through the Tribunal.
The Tribunal process involves an application by the tenant, followed by directions and potentially a hearing, which could be paper-based or oral, to determine the facts and decide whether the payment should be returned. The Tribunal's decision will order the respondent (landlord or agent) to repay the amount within a specified timeframe if the payment is found to be prohibited.
📋 Requirements
- The payment must have been made by an applicant (tenant or prospective tenant).
- The payment must be in respect of a tenancy or prospective tenancy.
- The payment must be considered a 'prohibited payment' or a holding deposit that should be returned under the Tenant Fees Act 2019.
📝 Procedure
- An applicant makes an application to the First-tier Tribunal under Section 15 of the Tenant Fees Act 2019.
- Directions are issued by the Tribunal, requesting further information or setting a hearing date.
- The Tribunal determines whether the payment was a holding deposit subject to Schedule 2 of the Act or a prohibited payment.
- If the payment is found to be prohibited, the Tribunal orders the respondent to repay the amount to the applicant.
💡 Examples
- A prospective tenant paid £795 as a holding deposit for a property, but the tenancy did not proceed, and the landlord refused to return the money, leading the tenant to apply to the Tribunal for recovery.
- A landlord was ordered to repay £250 that was paid in respect of a tenancy deposit, as it was deemed a prohibited payment under the Tenant Fees Act 2019.
- An applicant successfully sought the return of £730 from a respondent, which the Tribunal determined to be a prohibited payment for the purposes of the Tenant Fees Act 2019.
📚 Legal basis
- Tenant Fees Act 2019
❓ Frequently asked questions
What is a prohibited payment?
A prohibited payment is any fee charged to a tenant that is not explicitly permitted by the Tenant Fees Act 2019. This can include various charges beyond rent, a refundable tenancy deposit, or a refundable holding deposit.
Can I get back a holding deposit if I decide not to sign a tenancy agreement?
Yes, under certain conditions outlined in the Tenant Fees Act 2019, a holding deposit must be repaid if the tenancy does not go ahead, especially if the landlord or agent is at fault or if specific deadlines are missed.
How do I recover a prohibited payment or holding deposit?
You can apply to the First-tier Tribunal (Property Chamber) for an order to recover all or part of a prohibited payment or holding deposit, as seen in the cases where applicants sought repayment under Section 15 of the Tenant Fees Act 2019.
What is the Tenant Fees Act 2019?
The Tenant Fees Act 2019 is a law in the UK that bans most letting fees charged to tenants in England and caps tenancy deposits. It aims to make renting fairer and more affordable for tenants.
What happens if a landlord refuses to repay a prohibited fee?
If a landlord or agent refuses to repay a prohibited fee, you can make an application to the First-tier Tribunal, which has the power to order them to repay the sum, often within a specified number of days from the decision date.