The Tenant Fees Act 2019 marked a significant shift in the private rental sector in England, introducing strict regulations on what landlords and letting agents can charge tenants.

Designed to make renting fairer and more transparent, the legislation bans many common fees and imposes limits on others, such as tenancy deposits.

This guide breaks it all down, so you can stay compliant and keep things running smoothly with your tenants.

1. What is the Tenant Fees Act 2019?
2. What tenant fees are banned?
3. Permitted payments
4. Penalties for banned fees
5. FAQs about the Tenant Fees Act 2019

Enjoy the benefits of self-managing your property without the hassle. Let us show you how!

Explore Rent Now

What is the Tenant Fees Act 2019?

The Tenant Fees Act 2019 came into force on 1st June 2019, changing the way landlords and letting agents could charge tenants. Before the Act was introduced, it was common for tenants to face a range of upfront fees, including charges for viewings, administration, referencing, and even renewals. 

On 1st May 2026, the Renters’ Rights Act significantly updated this framework. Because all traditional Assured Shorthold Tenancies (ASTs) have been abolished and replaced with rolling Assured Periodic Tenancies (APTs), the Tenant Fees Act has been widened to cover these new agreements. Most notably, the 2026 reforms have officially pulled rent in advance into the Tenant Fees Act as a prohibited payment.

It applies to all residential tenancies in England and sets clear, strict rules on what landlords can and cannot charge tenants.

What tenant fees are banned?

Under the Tenant Fees Act 2019, landlords and letting agents are no longer allowed to charge tenants for a range of costs that were once common. The following fees are strictly prohibited:

• Admin fees: You cannot charge tenants for preparing contracts or handling paperwork.
• Viewing fees: Charging someone just to view a property is illegal.
• Referencing fees: Costs for checking a tenant’s credit or employment status must be absorbed by the landlord or agent.
• Renewal fees: Because fixed-term contract renewals no longer exist in the 2026 periodic system, charging a tenant any fee to continue a rolling tenancy is completely banned.
• Third-party services: Fees for things like inventory checks or cleaning services are not allowed unless they are part of a permitted payment (e.g., repairing genuine damage caused by the tenant).
• Rent in advance: As of May 2026, you cannot require or invite a tenant to pay more than one month’s rent upfront before the tenancy starts. Any amount demanded above this one-month cap is legally classified as a banned fee. Accepting any rent before the actual tenancy agreement has been signed by all parties is also a prohibited pre-tenancy payment.

Failing to comply with these rules can lead to severe penalties, so it’s important to make sure you’re only charging what is legally permitted. 

By using our tenancy creation service, Rent Now, you can stay compliant effortlessly without the hassle of having to check everything yourself.

You might also be interested in…

• What Are the New EPC Rules for Landlords? Coming in 2030
• Changes to Welsh Occupation Contracts From 1st June 2026
• Tenant Fees Act 2019: Which Tenancy Fees and Payments Are Banned?
• How to Calculate Pro Rata Rent
• What is Rent Arrears? Tips to Protect Your Rental Income as a Landlord

Permitted payments

Although the Tenant Fees Act bans many charges, there are still some payments that landlords can legally request, called “permitted payments”. Here’s what you can charge for:

• Tenancy deposit: A refundable deposit to cover damages or unpaid rent is allowed, but it’s capped at 5 weeks’ rent for properties with an annual rent under £50,000, or 6 weeks’ rent if it’s higher. In 2026, these caps remain strictly in place for all rolling periodic tenancies.
• Holding deposit: You can take a holding deposit to reserve a property for a tenant, capped at 1 week’s rent. The law sets strict rules for when it must be refunded, and you must provide written reasons to the tenant if you intend to retain it, or risk facing fines.
• Early termination fees: If a tenant leaves the property without giving the required 2 months’ written notice, you can legally charge them up to and including the total financial loss you have suffered as a result. This charge can cover your lost rent up until a new tenancy is successfully established, alongside reasonable re-letting expenses such as referencing fees for the replacement tenant.

Landlords can also charge for specific situations when a tenant breaches the tenancy agreement or makes certain requests:

• Late rent fees: If rent is more than two weeks late, you can charge interest at a rate of up to 3% above the Bank of England base rate. This must be calculated pro rata based on the amount of overdue rent.
• Lost keys or security devices: You’re allowed to charge tenants for replacing lost keys or damaged security fobs, but the cost must be reasonable, and you’ll need to provide evidence, such as a receipt.
• Changes to the tenancy agreement: If a tenant requests a change of occupant mid-tenancy (meaning you are replacing an outgoing tenant by either amending the current rolling contract or entering into a new agreement), the Tenant Fees Act allows you to charge a fee of up to £50 for the admin. Higher charges are only allowed if you can prove your costs exceed this amount, though such cases are rare.

Finally, optional fees are still legal but must be truly optional. For example, you can ask for the property to be returned cleaned to a professional standard, but tenants must have the option to either handle the cleaning themselves or pay for a professional service.

Before the tenant fees ban, tenants often paid around £300 in extra fees. OpenRent has never charged admin or agency fees, so tenants remain protected from unfair charges.

Can landlords charge bills as part of the rent?

Yes, landlords can include bills as part of the rent, but it must be clearly outlined in the tenancy agreement. The Tenant Fees Act 2019 allows landlords or letting agents to charge tenants for specific bills, such as:

• Council tax
• Utilities (e.g., gas, water, electricity)
• Television licence
• Communication services (e.g., broadband)

Including these costs in the rent can make things more convenient for tenants, especially in shared accommodation. However, under the 2026 Written Statement of Terms regulations, your agreement must explicitly detail exactly how these bills are split and whether they form part of the core rent or are an additional charge. 

Moreover, the charges must strictly reflect the actual cost of these services and must be reasonable under Ofgem’s maximum resale rules. Any excess or marked-up amount charged to the tenant will be treated as a prohibited payment.

Your next tenant is just a few clicks away. List your property today and let with ease.

Create your Advert Today

Penalties for banned fees

Charging tenants illegal fees can put you at risk of facing severe financial consequences. A breach of the legislation is a civil offence, carrying an initial fine of up to £5,000.

If a further offence is committed within five years, it escalates to a criminal offence with an unlimited fine, or local authorities can choose to issue a civil penalty of up to £30,000 as an alternative to prosecution.

Crucially, charging illegal fees completely paralyses your ability to regain possession of your property. Since Section 21 evictions were completely abolished on 1st May 2026, you must rely on Section 8 grounds.

If you have an outstanding, unreturned prohibited payment on your records, the courts will legally block you from using mandatory landlord possession grounds (such as Ground 1 to move back in or Ground 1A to sell the property) until the illegal fee has been fully refunded to the tenant.

The enforcement of these rules is handled aggressively by local Trading Standards authorities, who investigate complaints about illegal fees.

What happens to rent in advance for tenancies that were already active before 1st May 2026?

The strict new one-month cap on rent in advance only applies to new tenancies entered into on or after 1st May 2026.

Under the Renters’ Rights Act transitional provisions, if a student or residential tenancy agreement was signed before 1st May 2026 (even if the tenants are still occupying the property on a rolling basis), you can legally continue to collect rent in advance as specified in that original contract for the remainder of that specific tenancy. 

Any completely new tenancy set up after this date must strictly adhere to the one-month limit.

FAQs about the Tenant Fees Act 2019

Grounds for Repossession 1. Can I charge a pet fee or a higher deposit for pets?

No. You cannot charge a “pet fee” or an automated monthly surcharge, or a separate pet deposit, as these remain strictly prohibited payments. However, as of 1st May 2026, you may be able to claim through your tenant’s pet insurance to cover any damages.

2. What happens if I don’t refund a holding deposit in the right circumstances?

If you don’t return a holding deposit when required, you are in breach of the Tenant Fees Act. The holding deposit must be returned to the tenant within 7 days of you deciding not to go ahead. Under the latest rules, if you decide to keep a holding deposit because the tenant lied on their application or pulled out, you must provide the tenant with a detailed, written reason explaining your decision within 15 days, or you risk facing a £5,000 fine for unlawful retention.

3. Can I charge for a guarantor fee?

No, you cannot charge a fee for a guarantor under the Tenant Fees Act. Guarantor referencing fees, like other admin fees, are prohibited and must be paid for by the landlord.

4. Are there any exemptions to the Tenant Fees Act for certain types of tenancies?

Yes, there are some exemptions. For example, the Act doesn’t apply to long leases (over 21 years), holiday lets, or social housing tenancies. However, because the Renters’ Rights Act transitioned almost all private tenancies and student lets into Assured Periodic agreements, the Tenant Fees Act now applies universally across the mainstream private rented sector.

5. What should I do if a tenant disputes a fee I’ve charged?

If a tenant disputes a fee, you should first check that it’s fully compliant with the Tenant Fees Act and the Renters’ Rights Act. If the fee is banned (such as an admin charge or an undocumented bill markup), you must refund the tenant immediately. If the dispute continues, tenants have the right to take you directly to the First-tier Tribunal to claw back the cash – which can also heavily damage your compliance status on the National Landlord Database (once it’s live). Always keep detailed digital records and receipts of any permitted charges to resolve disputes efficiently.