Fees you can charge as part of a tenancy
Source: gov.uk (2025-11-13)

This guide explains what fees landlords can ask for when renting out a property.

The Renters’ Rights Act will change laws about renting and this guidance has been published to help private rented sector landlords and agents prepare. The new rules will apply on or from 1 May 2026. For information on what fees can currently be charged, refer to the existing Tenant Fees Act guidance. (https://www.gov.uk/government/collections/tenant-fees-act)

Overview

This guide is for landlords and letting agents, it will help you understand the Tenant Fees Act 2019.

The act defines what fees and payments you can ask tenants and lodgers to pay.

It applies to:
- assured periodic tenancies
- student accommodation
- licenses to occupy housing, for example, a lodger living in your home
It applies in England only.

It applies to housing associations and local authorities when they are letting a property privately.

The act does not apply to:
- social housing assured tenancies
- shared ownership leases
- short term holiday lets
- excluded licenses
- properties with an annual rent of more than £100,000
You can charge tenants or potential tenants the following payments in connection with a tenancy:
- the rent if you and the tenant have signed the tenancy agreement
- a refundable tenancy deposit
- a refundable holding deposit to reserve a property
- a payment to change the tenancy when requested by the tenant
- a payment when the tenant does not give the correct amount of notice
- including utilities, communication services and council tax as part of the rent when not paid separately
- a fee for late payment of rent
- a fee for replacing a key or security device
You cannot charge your tenant any payment that is not on this list.

You should contact landlord advice services if you are not sure if the fee you are charging is allowed.

Letting agents must publish a list of their fees.

Rent

You should agree the amount of rent to be paid with the tenant when agreeing to let the property. On or after 1 May 2026, the rent must not be more than the advertised amount, and you must clearly explain to your tenant what is included.

The rent should be fair and in line with other similar properties in the area.

Rent should be required at regular intervals and should be equally split across the tenancy. On or after 1 May 2026, you cannot ask for a tenant to pay rent before the tenancy agreement is signed.

If a tenant offers you rent before the tenancy agreement is signed, you must not accept it.

You can ask for a maximum of 1 month’s rent in advance after you and your tenant have signed the tenancy agreement and before the tenancy start date.

You can refer to the rent payments and deposits guidance (https://www.gov.uk/guidance/renting-out-your-property-guidance-for-landlords-and-letting-agents/rent-payments-and-deposits) for more information.

Refundable tenancy deposit

You can require a tenancy deposit of up to 5 weeks’ rent for properties where the annual rent is below £50,000.

For tenancies with an annual rent of between £50,000 and £100,000 you can require up to 6 weeks’ rent.

You do not have to take a tenancy deposit. If you do take a deposit, you must protect it in a government approved scheme (https://www.gov.uk/tenancy-deposit-protection).

Refundable holding deposit

You can ask a potential tenant to pay a deposit to hold the property while you undertake reference and pre-tenancy checks. The maximum holding deposit you can ask for is equivalent to one week’s rent.

You cannot accept more than one holding deposit per tenancy at a time.

The standard amount of time you can hold the deposit for is 15 calendar days after receiving it. You can agree a longer or shorter time period with the tenant in writing.

You do not have to take a holding deposit.

The maximum deposit amount is per tenancy not the number of tenants.

For example, three potential tenants want to share a flat on the same tenancy agreement, they pay a total of one week’s rent between them, not each.

You must refund the holding deposit unless the tenant:
- fails a Right to Rent check (https://www.gov.uk/prove-right-to-rent)
- withdraws from the application process
- does not respond or contact you to progress the tenancy
- gives you false or misleading information that affects their suitability as a tenant
If the tenant has given incorrect information that does not affect their suitability as a tenant, for example, a misspelling or a missing previous address, then you must return the holding deposit.

If the tenant signs the tenancy agreement, you can agree how the deposit will be refunded. You could refund it by reducing the amount of the first month’s rent or reduce the tenancy deposit

For all other circumstances, you must return the deposit within 7 days. If you do not return it, you may receive a financial penalty.

If you keep the holding deposit

If you do not tell the tenant the reason for your decision in writing within 7 days you may receive a financial penalty.

You should keep a record of your costs to show that they are reasonable.

Utilities, council tax and other bills

You can include the costs of council tax, utilities such as gas, electricity, water bills and communication services such as broadband, a television license and a landline phone in the rent payment.

If some or all of these bills are included with the rent, these must be listed as terms in the tenancy agreement. Any utilities included in the rent must be an accurate reflection of costs.

You cannot make a profit from reselling utilities as set out in the following legislation:

the Office of Gas and Electricity Markets (OFGEM) fixes maximum resale prices under section 44 of the Electricity Act 1989 and section 37 of the Gas Act 1986

the Water Resale Order 2006 governs the maximum price for water

Fees for tenancy changes

You do not have to charge a fee for tenancy changes.

Where a tenant requests a change to the tenancy agreement, for example, adding or removing a person, you can charge up to £50 for the work involved in updating the agreement. If the costs are higher, you should give evidence to a tenant that any fee charged above £50 is reasonable.

Payments when a tenant wants to end a tenancy early

If your tenant does not give the correct amount of notice to end a tenancy, you can charge a fee. This cannot be more than the amount of rent that you would have received if the tenant gave the right amount of notice.

Default fees

You can charge the tenant a default fee if this is included in the tenancy agreement.

You should make the tenant aware of these fees before they sign the tenancy agreement.

You can charge a default fee:
- for the loss of a key or other security device giving access to the property
- for late payment of rent
Replacement keys, security devices or fobs

The tenant is responsible for looking after the keys for the property throughout the tenancy.

You can charge the tenant the cost of replacing a key or other security device.

You must provide evidence in writing to the tenant to show the costs you have incurred are reasonable.

Late payment of rent

Rent must be overdue by at least 2 weeks before you can charge a fee.

The maximum fee rate is 3 per cent above the Bank of England’s base rate. You can only charge a fee on the amount that is overdue.

If the amount of rent that your tenant owes you changes, for example, on the rent due date or when the tenant makes a payment, you should recalculate the new sum. This would be the number of days the new sum has been outstanding, and any change to the base rate.

You should apply default fees on a case by case basis. For example, it may not be appropriate to charge a default fee where a tenant has provided a reasonable explanation for a late rent payment and sufficient notice that the payment would be delayed.

This is especially the case if a tenant normally pays their rent on time or their rent is late for a circumstance outside of their control,

For example:
- banking systems are down
- delayed Housing Benefit or Universal Credit payments
If your tenant seems to be struggling to pay the rent, you should consider contacting them earlier to discuss their circumstances.

You could agree to more frequent payments or adjusting the rent due date, for example, to the day after the tenant gets paid.

You can also suggest they contact Citizens Advice (https://www.citizensadvice.org.uk/) for help with managing money.

Prohibited payments

If you charge your tenant a fee that is not allowed this is called a prohibited payment.

If you don’t return the fee when requested, the tenant or their representative can report you and you may have to pay a fine or go to court.

It is also a prohibited payment if you require your tenant to take out a loan, pay for insurance or start a contract for a service.

A tenant can use a loan, insurance or contract if they choose to.

For example:
- a professional guarantor service
- a deposit replacement product
- an inventory service
You can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy, in these circumstances, a tenant could choose to contract a professional guarantor service.

If someone reports you for requiring a prohibited payment

The local council can investigate you or your letting agent if you are reported for taking a prohibited payment.

If the local council finds that you have required or taken a prohibited payment they may issue a financial penalty.

For the first occasion the penalty is up to £5000.

If you charge a second or more prohibited fees within 5 years, you can be taken to court or issued with a penalty of up to £30,000.

The court can issue an unlimited fine and you may receive a banning order that stops you renting out your properties. You may also be added to a rogue landlord database.

Your tenant can also apply to the First-tier Tribunal who can order you to return the fee.

Appeals

You can appeal (https://www.gov.uk/government/publications/form-tfa2-appeal-against-a-financial-penalty-where-section-1-or-2-or-schedule-2-of-the-tenant-fees-act-2019-has-been-breached) against a financial penalty through the First-tier Tribunal. The deadline for an appeal is 28 days from the day after the final notice confirming the penalty was served.

An appeal reviews the council’s decision and may take into account other evidence.

On appeal, the First-Tier Tribunal may confirm, change or cancel the final notice.

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