Prohibited payments
Prohibited payments are any charges to tenants that are not on the legal list of “permitted payments” for assured tenancies and assured shorthold tenancies in England. If a fee is not clearly permitted by law, you must assume it is banned.
Under the Tenant Fees Act 2019 carried forward and reinforced in the Renters’ Rights Act, permitted payments are basically limited to rent, capped tenancy deposits, capped holding deposits, certain default fees (for lost keys or late rent, tightly controlled), variation/surrender fees in limited cases, and charges for council tax, utilities, TV licence and communication services where the tenant would normally pay these anyway.
Everything else is a prohibited payment. For example admin fees, referencing fees, inventory fees, check-in/check-out fees, renewal fees, mandatory professional cleaning fees, “pet fees”, exit fees, or spurious “inspection charges”.
From a landlord’s perspective, taking prohibited payments is both sub-standard practice and it can lead to:
Repayment to the tenant, often with interest.
Civil penalties and potential prosecution.
Restrictions on using certain possession routes until the money is repaid.
Professional landlords treat these costs as part of doing business and price them into the rent, rather than trying to pass them on as extra charges.
