UK Tenant Fees Act 2019 FAQ: What Landlords Can and Cannot Charge

The Tenant Fees Act 2019 transformed the private rental market in England by banning almost all charges to tenants other than rent and a strictly limited list of “permitted payments”. Despite being in force since 1 June 2019, the Act remains widely misunderstood, particularly when landlords ask about reference fees, inventory fees, and check-out fees. This FAQ collects the most common questions in the form most landlords actually ask them.

Q1. What payments can a landlord lawfully require from a tenant?

Under Schedule 1 of the Tenant Fees Act 2019, the only payments a landlord can require from an assured shorthold tenant (and from 1 May 2026 an Assured Periodic Tenant) are:

• Rent — paid as agreed in the tenancy.
• Tenancy deposit — capped at 5 weeks’ rent (or 6 weeks if annual rent ≥ £50,000).
• Holding deposit — capped at 1 week’s rent.
• Default fees — limited to specified items: replacement keys/security devices and interest on late rent.
• Variation, assignment, novation fees — capped at £50 (or reasonable cost if higher).
• Early termination fees — at the tenant’s request, capped at the landlord’s actual loss.
• Council tax, utilities, communications, TV licence — only where the contract requires the tenant to pay these directly to the supplier or to the landlord as a pass-through.

Any other payment is a prohibited payment.

Source — Tenant Fees Act 2019, Sch. 1: https://www.legislation.gov.uk/ukpga/2019/4/schedule/1

Q2. Can I charge a referencing fee?

No. Referencing is the landlord’s cost. Referencing fees were one of the principal targets of the Act and are now expressly prohibited. The cost of credit checks, employment verification, and previous-landlord references must be borne by the landlord (or by a letting agent out of the landlord’s commission, not from the tenant).

Q3. Can I charge an inventory or check-in fee?

No. Inventory preparation and check-in administration are landlord costs. Some letting agents continue to mis-label these as “tenancy administration fees” — these are illegal under the Act.

Q4. Can I charge a check-out fee at the end of the tenancy?

No. Check-out and check-in are both landlord costs. The only deductions a landlord can make at the end of a tenancy come from the deposit, which must be itemised against actual damage, unpaid rent, or breach of contract — not against a fixed “check-out fee”.

Q5. Can I charge a “professional cleaning” fee?

No — the landlord cannot require professional cleaning. The tenant must return the property in the condition it was in at the start, fair wear and tear excepted, but the standard is “as-good-as”, not “professionally cleaned”. A clause requiring professional cleaning in the tenancy agreement is unenforceable. At the end of the tenancy, the landlord can deduct from the deposit the actual cost of cleaning needed to restore the property to the move-in standard, but only if supported by inventory evidence and only to the extent of the actual cost.

Q6. Can I charge an admin fee for issuing the tenancy agreement?

No. Drafting the tenancy is a landlord cost.

Q7. Can I charge a fee for changing the tenant during the tenancy?

Yes, but capped. A variation, assignment, or novation fee is permitted under the Act, but is capped at £50 inclusive of VAT unless the landlord can demonstrate that reasonable costs were higher (e.g., specialist advice was needed). The £50 cap is a hard administrative ceiling for routine cases.

Q8. Can I charge for lost keys?

Yes, as a default fee. The tenant must pay the reasonable cost of replacement, supported by an invoice. The cost cannot include profit margin or admin uplift. Schedule 1 paragraph 5(1)(a) of the Act covers this.

Q9. Can I charge interest on late rent?

Yes, capped at 3% above the Bank of England base rate (Schedule 1 paragraph 6). The interest can only be charged after the rent has been more than 14 days overdue.

Q10. What is a “holding deposit” and how does it work?

A holding deposit is paid by a prospective tenant to reserve a property while referencing is completed. Under Schedule 2 of the Act:

• Capped at 1 week’s rent.
• Must be returned (or applied toward rent/deposit) within 15 days of receipt unless:
  • The tenant withdraws (forfeit allowed).
  • The tenant fails right-to-rent checks (forfeit allowed).
  • The tenant provides false or misleading information (forfeit allowed).
  • The deadline is extended by mutual written agreement (rare).

If the deadline expires without a tenancy being entered into and without one of the forfeit grounds applying, the holding deposit must be returned in full.

Q11. Can I take a higher deposit if the tenant has pets?

No. The deposit cap is the deposit cap — 5 weeks’ rent (or 6 weeks if annual rent ≥ £50,000). A “pet deposit” on top is a prohibited payment.

The Renters’ Rights Act 2025 introduces a separate concept of “pet damage insurance” which the landlord can require at the tenant’s cost where the tenant requests permission to keep a pet — but this is insurance, not a deposit, and is paid to a third-party insurer rather than held by the landlord.

Q12. What are the penalties for taking a prohibited payment?

The penalties are tiered:

Local authorities (Trading Standards) enforce the Act. A tenant can also bring a claim directly in the County Court.

Q13. Can I require a guarantor and charge them a fee?

You can require a guarantor — many landlords do. But you cannot charge the guarantor anything other than what is permitted of the tenant. So a “guarantor fee” for processing a guarantor’s reference is a prohibited payment.

Q14. Can I charge a “reservation fee” outside the holding deposit framework?

No. Any payment to reserve the property is a holding deposit by another name and falls under the Act’s caps and rules. Calling it a “reservation fee” or “commitment fee” does not change the legal characterisation.

Q15. How does the Act interact with the Tenant Fees Act for letting agents?

Letting agents are bound by the Act in the same way as landlords. Schedule 1 explicitly covers payments to either the landlord or any person acting on the landlord’s behalf. An agent who charges a tenant a “registration fee” or “renewal fee” commits the same offence as a landlord doing so directly.

In addition, letting agents must:

• Be a member of an approved redress scheme (The Property Ombudsman or PRS).
• Display fees clearly at every branch and on every website (Consumer Rights Act 2015, ss.83–88).
• Hold client money protection insurance.

Q16. What if my tenancy started before 1 June 2019?

Tenancies entered into before 1 June 2019 were subject to a transition period until 1 June 2020. Since 1 June 2020 the Act applies to all tenancies, including those that pre-existed the Act. Any fee terms in a legacy tenancy that conflict with the Act are unenforceable.

Q17. Are commercial leases or licences covered by the Act?

No. The Act applies only to assured shorthold (and from 1 May 2026, assured periodic) tenancies of housing in England. Commercial leases, holiday lets, lodger licences, and company lets are outside the Act.

Q18. Where can a tenant complain?

A tenant who has been charged a prohibited payment can:

• Demand repayment from the landlord/agent in writing.
• Report the landlord/agent to the local authority’s Trading Standards team.
• Apply to the First-tier Tribunal (Property Chamber) for an order requiring repayment.
• Bring a claim in the County Court.

Source — Government tenant fees guidance: https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

Q19. Where can a landlord get the current rules summarised?

The government publishes:

• Tenant Fees Act guidance for landlords and agents: https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance
• How to Rent guide (which references the Act): https://www.gov.uk/government/publications/how-to-rent

These should be the starting point — not commercial blog content from agents trying to sell paid services.

Q20. How does the MmowW Scrib🐮 cell #8 help?

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• caps the deposit automatically at 5 or 6 weeks based on the user’s annual rent;
• includes a Schedule 1 compliance checklist for permitted payments;
• generates a default-fee schedule limited to lawful items;
• tracks the holding deposit 15-day clock from the date received.

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Disclaimer

This article provides legal information, not legal advice. MmowW Scrib🐮 is a document preparation service operated by a licensed Gyoseishoshi (行政書士) office in Japan. We are not UK solicitors or barristers.

Sources

• Tenant Fees Act 2019: https://www.legislation.gov.uk/ukpga/2019/4/contents
• Tenant Fees Act 2019, Sch. 1: https://www.legislation.gov.uk/ukpga/2019/4/schedule/1
• Government — Tenant Fees Act guidance: https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance
• Government — How to Rent: https://www.gov.uk/government/publications/how-to-rent