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Can letting agents charge fees?

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A. No. Lettings agents in England and Wales are now banned from charging fees to tenants and in England deposits are capped at the equivalent of five weeks’ rent. The Tenant Fees Act 2019 aims to enable tenants to see exactly what fees will be involved when renting a new property, with no hidden costs, but it means landlords must now pay for services such as referencing and inventory checks.

Tenants renting a London rental property may still incur the following charges:

  • A holding deposit which is charged to reserve a property. This is refundable and may not exceed one week’s rent
  • A late payment fee for rent that is 14 days or more overdue
  • Lost key replacement costs
  • Payments for leaving a tenancy before the end of the fixed-term, when requested by the tenant. Landlords should only charge rent to cover any void period until a replacement tenant is found

Any tenancy agreement you sign should have a clear and complete list of costs that the landlord may intend to pass on to you and there should be no agent’s fees included. This is where a good lettings agent can make all the difference as they will be able to draw up an agreement that is fair to both tenant and landlord. Most of these agents are members of the ARLA Propertymark, which is the professional body concerned with safeguarding standards and practices within the UK industry. Further protections are available through The Property Ombudsman (TPO), an organisation which offers a free, fair and impartial resolution service.

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Marc von Grundherr

About the Author

Marc has been a director at Benham and Reeves since 2001 and works closely with Managing Director Anita Mehra in the growth of the company in all areas from investments to sales to rentals and tax. You may have seen Marc within the UK and international media on a regular basis where he is now the property expert of choice for multiple news organisations including the BBC, Bloomberg, Reuters, The Times, Telegraph, Financial Times, News UK and more. His analysis in always well-informed and topical and delivered with a professionalism and passion that news producers seem to like. He is never short of an opinion on the property market. Marc is also an experienced panellist and webinar host especially when curating subjects such as property investing and the economics of housing domestically and overseas. He leverages his long-term investor contact-book well and is always happy to provide advice and insight to would be property speculators.

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