There are many requirements that letting/managing agents and landlords must adhere.
Tenant Fees
It is illegal for landlords and letting agents to charge certain fees to tenants unless they are classed as ‘permitted payments’.
These are the ONLY permitted payments which tenants can be asked to pay:
- Rent
- Holding deposits (capped at 1 weeks rent)
- Security deposits (capped to 5 weeks rent where the annual rent is less than £50,000)
- Utility bills and council tax
- Default fees – including key loss and rent arrears (reasonable charges)
- Changes to a tenancy at the tenant’s request - £50/reasonable costs
- Fees for leaving a tenancy early, known as termination charges (to cover actual loss suffered by the landlord)
Tenants cannot be charged for the following:
- Administration fees
- Contract negotiation fees
- Application fees x Inventory charges
- Set up fees x Referencing fees
- Credit check fees x Renewal fees
- Guarantor fees x End of tenancy fees
- Permitted occupier fees
- Default professional cleaning fee
- Right to Rent fees
- Check-in and check-out fees unless by mutual agreement, e.g. for an out of office hours checkout.
Further information on tenant fees is available on the following website Tenant Fees Act 2019: guidance - GOV.UK
Redress Scheme
Letting and managing agent must belong to one of two redress schemes, either:
- The Property Ombudsman (TPO)
- The Property Redress Scheme (PRS)
Tenants can check if their agent is a member online:
www.theprs.co.uk/consumer/members/
An agent must tell a tenant which scheme they belong to and show the name of the scheme in their offices and on their website.
Deposit schemes
When a tenant pays a deposit, this must be protected in one of three schemes, and you must be given prescribed information within 30 days of it being paid:
- Deposit Protection Service
- MyDeposits
- Tenancy Deposit Scheme
Further information on deposit protection schemes is available on the following website Deposit protection schemes and landlords: Overview - GOV.UK
Client money protection schemes
If a tenant rents through a letting or managing agent and pays them any money for the property, like rent, they must be a member of a client money protection scheme.
There are 6 schemes:
- Client Money Protect
- Money Shield
- Propertymark
- RICS
- Safeagent (previously NALS)
- UKALA Client Money Protection
Further information on client money protection schemes is available on the following website Protecting clients' money if you're a property agent - GOV.UK
Display of fees
Letting agents are required to indicate the fees, charges and penalties payable to the letting agent by their clients under contracts for:
- introducing tenants to landlords with accommodation available for rent
- arranging assured tenancy agreements
- the management of rental properties
Letting agents must display a list of relevant fees:
- in each of their premises where they deal with clients or potential clients face-to-face
- on their website (if they have one)
Energy Performance Certificates
Energy Performance Certificates (EPCs) give information on the energy performance of a building in a sliding scale from A (very efficient) to G (least efficient). This enables tenants to consider a building's energy efficiency and typical energy costs before making a commitment to the contract.
If a domestic property is being rented, then it is the responsibility of the landlord to provide the EPC to the potential tenant.
As soon as an EPC is available in writing, it must be given to any person who has requested it; where a person has made a request to view a building, it must be given at the time of viewing. A copy of the EPC must be given free of charge to the successful tenant.
The energy performance indicator (A-G rating) must also be stated in any advertisement of the sale or rental in commercial media.
Where a building is placed on the market for sale or rent, the relevant person (for example, the seller or landlord) and their agent must ensure that a valid EPC has been obtained for the property. If there is no valid EPC, they must satisfy themselves that an EPC has been commissioned for the property before it is placed on the market and before it is marketed; they must also make all reasonable efforts to ensure that the EPC has been obtained within seven days of first marketing the property.
Further information on EPC`s is available on the following website Energy Performance Certificates | Business Companion
How to Complain
All complaints should be reported to our partner organisation Citizens Advice Consumer Services on 03454 040506 or via e-mail to trading.standards@northtyneside.gov.uk