When it comes to renting a property, a tenancy agreement is a crucial document that outlines the terms and conditions of the tenancy. Landlords and tenants should be aware of the fees associated with creating and renewing a tenancy agreement.
In the UK, legislation passed in 2019 banned certain fees charged to tenants by landlords and letting agents. This includes fees for referencing, credit checks, inventories, and administration. However, landlords and letting agents can still charge fees for creating, renewing, or amending a tenancy agreement.
The fees for tenancy agreements can vary, and it`s essential to understand what you`re paying for. Some landlords and letting agents charge a flat fee, while others may charge a percentage of the rent or a fee based on the length of the tenancy.
Typically, the cost of creating a tenancy agreement ranges from £100 to £250. Renewing or amending a tenancy agreement may cost less, usually between £50 to £100.
It`s worth noting that fees for tenancy agreements are negotiable, and tenants can ask for a discount. Landlords and letting agents may be willing to lower the fees to secure a tenant, particularly in a competitive rental market.
As a tenant, it`s crucial to carefully review the tenancy agreement and understand the fees you`re paying for. Make sure that the fees are reasonable and accurately reflect the work involved in creating or renewing the tenancy agreement.
In conclusion, fees for tenancy agreements are still legal in the UK, but certain fees are now prohibited. Tenants should be aware of the fees and negotiate where possible to ensure they are paying a fair price. Landlords and letting agents must ensure that any fees charged are reasonable and accurately reflect the work involved.