TENANT FEE ACT COMPLIANCE
Regal Estate Agents
Trading name of Regal Capital Group Ltd
Purpose
Regal Estate Agents is committed to full compliance with the Tenant Fees Act 2019, which came into force on 1st June 2019. This legislation was introduced to reduce the costs that tenants face at the outset and throughout their tenancies, making the rental market fairer and more transparent. This policy outlines our commitment to operating within the legal framework and details the permitted payments and charges under the Act.
Scope
This policy applies to all assured shorthold tenancies in England entered into or renewed after 1st June 2019. It covers all interactions between Regal Estate Agents, landlords, and tenants, including initial lettings, tenancy renewals, and ongoing tenancy management. This policy applies to all staff members involved in lettings activities and serves as guidance for landlords using our services.
Legislative Framework
The Tenant Fees Act 2019 prohibits landlords and letting agents from charging most fees to tenants. The Act is enforced by local authorities through civil penalties and, in serious cases, criminal prosecution. We are committed to maintaining our reputation and operating licence by ensuring full compliance with these regulations.
Permitted Payments
Under the Tenant Fees Act 2019, tenants may only be required to pay the following:
Rent
- The periodic rent as specified in the tenancy agreement
- Rent payments must be clearly stated and cannot include hidden charges
- Rent can be paid weekly, monthly, or at other agreed intervals
Refundable Tenancy Deposit
- Maximum of 5 weeks’ rent where the annual rent is less than £50,000
- Maximum of 6 weeks’ rent where the annual rent is £50,000 or above
- Must be protected in a government-approved tenancy deposit scheme within 30 days
- Full deposit protection information must be provided to tenants
Refundable Holding Deposit
- Maximum of 1 week’s rent
- Paid to reserve a property while referencing is completed
- Must be refunded or offset against other permitted payments within 15 days
- Can be retained in specific circumstances outlined in the legislation
Permitted Charges During Tenancy
Utilities and Council Tax
- Gas, electricity, water, and sewerage charges
- Council tax payments
- Television licence fees
- Internet and telephone charges (where separately metered or contracted)
Default Charges
- Late payment of rent: Interest at 3% above the Bank of England base rate
- Lost key or security device replacement: Reasonable cost of replacement
- Variation, assignment, or novation of tenancy: £50 or reasonable cost if higher
- Early termination: Costs incurred by landlord if requested by tenant
Damages Beyond Normal Wear and Tear
- Reasonable costs for damage beyond normal wear and tear
- Professional cleaning costs where property not returned in same condition
- Repair costs for tenant-caused damage
Prohibited Practices
We do not charge tenants for:
- Administration fees or setup fees
- Credit check or referencing fees
- Inventory preparation or check-in fees
- Check-out fees or inspection charges
- Tenancy renewal fees
- Guarantor arrangement fees
- Pet deposits (separate from main deposit)
- Key holding fees
- Late payment charges exceeding the permitted rate
Deposit Protection
All tenancy deposits are protected within 30 days of receipt in one of the following government-approved schemes:
- Deposit Protection Service (DPS)
- MyDeposits
- Reposit
- Tenancy Deposit Scheme (TDS)
We provide tenants with:
- Prescribed information about the deposit protection
- Details of the protection scheme used
- Information about how to reclaim the deposit
- Dispute resolution procedure information
Holding Deposit Process
When a holding deposit is taken:
- We provide written confirmation of the amount and terms
- The deposit is held for a maximum of 15 days (or agreed deadline for agreement)
- We confirm whether the deposit will be refunded or retained
- If retained, we provide clear reasons in writing
- Any refund is processed within 7 days of the decision
Transparency and Communication
We ensure transparency by:
- Clearly advertising all permitted charges upfront
- Providing written confirmation of all payments required
- Explaining the purpose of each permitted payment
- Maintaining clear records of all transactions
- Providing receipts for all payments received
Staff Training and Compliance
All staff involved in lettings activities receive regular training on:
- Tenant Fees Act requirements and updates
- Permitted and prohibited practices
- Proper handling of deposits and holding deposits
- Documentation and record-keeping requirements
- Consequences of non-compliance
Monitoring and Audit
We regularly review our practices to ensure ongoing compliance:
- Monthly audits of tenancy agreements and charges
- Quarterly reviews of deposit protection compliance
- Annual policy reviews and staff training updates
- Regular monitoring of legislative changes and guidance
Enforcement and Penalties
We understand that non-compliance can result in:
- Civil penalties of up to £5,000 for first offences
- Civil penalties of up to £30,000 for subsequent offences
- Criminal prosecution for serious or repeated breaches
- Prohibition from recovering possession under Section 21
- Reputational damage and potential licence revocation
Contact Information
For questions about our Tenant Fees Act compliance or permitted charges:
Regal Estate Agents Suite Ra01, 195-197 Wood Street, London, E17 3NU Email: contact@regalestateagents.co.uk Phone: 01270 295673
Policy Review
This policy is reviewed annually or when legislative changes occur to ensure continued compliance with the Tenant Fees Act 2019 and related regulations.
Last Updated: 28 July 2025