Most of you will be aware of the impending Tenant Fee Bill which comes into force on the 1st June 2019 however this piece of legislation isn’t just about the fees tenants pay agents or landlords. The legislation will also see a cap to the amount of deposit the tenant has to pay which will be the equivalent of 5 weeks rent.
This will mean that for any tenancy which is entered into after the 1st June 2019, this includes tenancies that are renewed on a fixed term basis, they must have a deposit no more than the equivalent of 5 weeks rent. If the tenancy is renewed and the deposit already held is higher than 5 weeks rent any amount above this must be refunded and the deposit protection updated to reflect this.
In anticipation of the legislation coming into force, we capped the deposits on all properties advertised from the 1st March 2019 to a maximum of 5 weeks rent.
For those of you who benefit from our managed service, we shall contact you when the tenancy is due for renewal and advise whether part of the deposit is to be refunded as part of the renewal and we shall arrange all of this for you as well.
Fines for breaches of the bill start at £5,000 so it is imperative that tenancy renewals and deposit protections are dealt with in line with the changes in legislation. Now more than ever it is so important to ensure you have an ARLA Propertymark registered agent who can help you stay compliant.