The Tenant Fees Act 2019 changed the way landlords and letting agents in England can charge tenants. Before the Act, many tenants were asked to pay administration fees, referencing fees, inventory fees, check-out fees, renewal fees and other upfront costs.
Those days are gone.
The basic rule is simple: if a payment is not specifically allowed, it is likely to be banned.
That makes the Tenant Fees Act one of the most important landlord compliance rules — and one that can easily be breached by outdated tenancy agreements, old letting agent practices or informal arrangements with tenants.
Why landlords need to pay attention
Many landlords think the Tenant Fees Act is only relevant to letting agents. That is a mistake.
The Act applies to landlords too. If a landlord, agent or someone acting on their behalf asks a tenant to make a prohibited payment, this can create enforcement risk. The Government’s guidance explains that the Tenant Fees Act defines what fees and payments landlords can ask tenants to pay.
This matters even more in the current rental landscape. The Renters’ Rights Act 2025 has increased the focus on fair treatment, transparent advertising, proper tenancy records and formal processes. Landlords who continue to use old documents or outdated fee practices may find themselves exposed.
The golden rule: permitted payments only
Under the Tenant Fees Act, landlords and agents can only require tenants to make certain permitted payments.
The main permitted payments are:
- rent;
- a refundable tenancy deposit, subject to the statutory cap;
- a refundable holding deposit, subject to the statutory cap;
- certain payments for utilities, council tax, TV licence and communication services where the tenancy agreement allows them;
- limited default fees;
- reasonable payments for tenancy changes requested by the tenant;
- payments where the tenant asks to leave early;
- damages for breach of the tenancy agreement.
Shelter’s legal guidance summarises the position clearly: a private landlord or agent can only charge fees permitted under the Tenant Fees Act 2019, and any payment that is not permitted is a prohibited payment.
This means landlords should avoid assuming that a charge is lawful simply because it appears in a tenancy agreement.
Banned fees landlords should watch for
Common prohibited charges may include:
- referencing fees;
- credit check fees;
- administration fees;
- tenancy set-up fees;
- inventory fees;
- check-in fees;
- check-out fees;
- renewal fees;
- fixed professional cleaning fees;
- routine inspection fees;
- fees for providing basic tenancy documents;
- fees for arranging repairs that are the landlord’s responsibility;
- general “compliance” or “processing” charges.
A fee does not become lawful because it has been renamed. Calling something a “service charge”, “document charge”, “move-in fee” or “tenant onboarding fee” does not make it valid if it is not a permitted payment.
Tenancy deposits: allowed, but capped
A tenancy deposit is a permitted payment, but the amount is capped.
For most private residential tenancies in England, the maximum tenancy deposit is:
| Annual rent | Maximum tenancy deposit |
|---|---|
| Less than £50,000 | Five weeks’ rent |
| £50,000 or more | Six weeks’ rent |
Government landlord guidance confirms that refundable tenancy deposits are capped at no more than five weeks’ rent where annual rent is below £50,000, and six weeks’ rent where annual rent is £50,000 or above.
This is separate from tenancy deposit protection. A landlord must both:
- take no more than the permitted amount; and
- protect the deposit correctly.
A deposit can be protected and still be unlawful if the amount taken exceeds the cap.
Holding deposits: another common trap
A holding deposit is also permitted, but it is capped at one week’s rent.
A landlord or agent may take a holding deposit to reserve a property while referencing, checks and tenancy paperwork are carried out. However, Government guidance states that a landlord or agent cannot ask for a holding deposit of more than one week’s rent.
The holding deposit rules are detailed. Landlords should understand:
- when a holding deposit must be refunded;
- when it can be retained;
- what information must be given to the applicant;
- what happens if the landlord decides not to proceed;
- what happens if the tenant provides false or misleading information;
- what happens if the agreement is not reached within the relevant deadline.
A holding deposit should never be treated as a general application fee.
Default fees: limited, not open-ended
Default fees are another area where landlords can get into difficulty.
The Act allows certain default fees, but only in limited circumstances. The most common examples are:
- late payment of rent;
- replacement of a lost key or security device.
Even then, charges must be reasonable and properly evidenced.
A landlord should not impose arbitrary penalty charges. For example, a fixed £75 charge for a late rent payment may be risky if it does not reflect what the Act allows. A lost key charge should reflect the reasonable cost of replacement, not become a profit-making opportunity.
Tenant-requested changes
A landlord can usually charge for certain tenancy changes requested by the tenant, such as:
- adding or removing a tenant;
- changing a rent payment date;
- allowing a permitted occupier;
- varying the agreement to allow a pet;
- assigning or novating the tenancy.
However, the charge must be within the permitted limits unless the landlord can show that higher reasonable costs were incurred.
The key word is reasonable.
Landlords should keep evidence of any costs claimed, such as agent invoices, legal charges or administrative costs that can be justified.
Early surrender: recovering loss, not imposing penalties
If a tenant asks to leave early, the landlord may be able to recover reasonable costs or losses. This might include rent until a replacement tenant is found, or reasonable re-letting costs.
However, landlords should avoid treating early surrender as an opportunity to impose a penalty.
The amount claimed should be linked to actual loss. If the property is re-let quickly, the landlord should be careful about continuing to charge the outgoing tenant.
Professional cleaning clauses
Cleaning is a classic source of confusion.
A landlord can usually expect the property to be returned in the same standard of cleanliness as at the start of the tenancy, allowing for fair wear and tear. However, a fixed requirement that the tenant must pay for professional cleaning is likely to create risk.
The safer approach is to focus on condition, not method.
For example, the tenancy agreement may require the tenant to return the property clean. But it should not automatically require the tenant to pay a professional cleaning company regardless of whether the property needs it.
Why old tenancy agreements are dangerous
Many landlords still use tenancy agreements drafted before the Tenant Fees Act came into force.
Those agreements may contain clauses requiring tenants to pay:
- renewal fees;
- checkout fees;
- inventory fees;
- administration charges;
- professional cleaning charges;
- fixed late payment penalties;
- landlord legal costs in broad circumstances;
- costs for routine tenancy management.
Even if the landlord does not currently enforce those clauses, their presence can still create confusion, complaints or disputes.
Landlords should review old tenancy templates, holding deposit forms, applicant packs, renewal letters and check-out documents.
Letting agents: landlords still need oversight
Using a letting agent does not mean the landlord can ignore fee compliance.
If an agent charges tenants unlawful fees in connection with a landlord’s property, the landlord may still face problems. Landlords should make sure agents are using compliant:
- advertisements;
- holding deposit forms;
- fee schedules;
- tenancy agreements;
- renewal processes;
- checkout processes;
- applicant communications.
A landlord should know exactly what a tenant or applicant is being asked to pay.
Penalties for non-compliance
Breaching the Tenant Fees Act can lead to enforcement action.
Consequences may include:
- repayment of the prohibited payment;
- financial penalties;
- greater penalties for repeated breaches;
- possible criminal liability in serious or repeated cases;
- difficulties with possession proceedings in some circumstances;
- reputational damage;
- complaints to trading standards or the local authority.
The financial penalty is only part of the risk. A landlord who charges unlawful fees may also undermine trust with tenants and make future disputes harder to resolve.
Common landlord mistakes
1. Charging for referencing
Referencing is part of the landlord’s decision-making process. It should not normally be charged to the tenant.
2. Treating holding deposits as automatically non-refundable
A landlord cannot simply keep a holding deposit because the arrangement did not proceed. The reason matters.
3. Taking more than one holding deposit
A landlord should be very careful about taking multiple holding deposits for the same property.
4. Using old fee wording
Old templates may still contain banned charges.
5. Charging fixed cleaning fees
The landlord can expect cleanliness, but automatic professional cleaning charges are risky.
6. Charging excessive key replacement fees
The charge should reflect reasonable replacement cost.
7. Allowing the agent to operate unchecked
The landlord should understand what the agent is charging.
How the Renters’ Rights Act makes this more important
The Renters’ Rights Act has pushed the private rented sector towards clearer processes, better records and stronger enforcement. Rental bidding restrictions, greater scrutiny of advertising, changes to possession and increased local authority powers all point in the same direction: landlords need clean paperwork and fair processes.
The Tenant Fees Act fits into that wider compliance culture.
If a landlord cannot clearly explain what a tenant was charged and why, that is a problem.
Practical checklist for landlords
Landlords should:
- review all tenancy agreement fee clauses;
- remove references to banned fees;
- check holding deposit forms;
- check the tenancy deposit cap;
- check agent fee schedules;
- avoid referencing and admin charges;
- remove fixed checkout and inventory charges;
- avoid fixed professional cleaning fees;
- keep evidence for default charges;
- refund any prohibited payment promptly if discovered;
- train staff or agents on permitted payments;
- update applicant-facing documents.
The key takeaway
The Tenant Fees Act is built around a simple principle: tenants should only be charged what the law allows.
For landlords, that means old habits can be expensive. Fees that were once common may now be unlawful. In a more regulated rental market, the safest approach is to review every tenant payment and ask: is this clearly permitted?
If the answer is no, do not charge it.
NetRent does not provide legal advice. This article represents our understanding of rental property law.
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