On 1 April 2019, the government published guidance on the impact of this legislation. This can be downloaded from TFA Guidance for Landlords/Agents. Heavy reading but essential.
The Act will be introduced in two stages. It will apply to all new tenancies from 1st June 2019, and then to all tenancies as from 1st June 2020.
- Tenancy Agreements will need changing from 1st June 2019
- Section 21 notice cannot be served if a tenant has been charged for something that is not a 'permitted charge'.
- Refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
- Refundable holding deposit (to reserve a property) capped at one week’s rent
- Cap of £50 or reasonable costs if the cost is higher (needs proof) Where a tenant requests an assignment, novation or variation on the tenancy (add/change a sharer).
- You may charge a default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
- fee to view a property
- setting up a new tenancy
- check-out at the end of a tenancy