Permitted payments
Permitted payments are the only charges you are legally allowed to take from most residential tenants in England, on top of the rent itself. If a payment is not clearly on this list, you must treat it as prohibited and not demand or keep it.
Under the Tenant Fees Act 2019, carried forward and reinforced in the Renters’ Rights Act, permitted payments are broadly limited to:
Rent.
A capped tenancy deposit, normally up to 5 or 6 weeks’ rent.
A capped holding deposit, up to one week’s rent.
Certain tightly controlled default fees, for example, late rent interest and the actual cost of replacing lost keys/fobs.
Reasonable variation, assignment or early termination fees where the tenant requests the change and costs are evidenced.
Payments the tenant would normally make anyway, such as Council Tax, utilities, TV licence and communications services, whether paid direct or via an all-inclusive rent.
From a landlord’s perspective, anything else is not a permitted payment, that includes admin fees, tenant referencing fees, check-in/check-out fees, inventories, “pet fees”, compulsory professional cleaning, exit fees. Demanding or retaining such sums risks civil penalties, rent repayment orders and restrictions on using certain possession grounds under the Renters’ Rights Act.
Also see our landlord blog articles.
