From 12 December 2018, tenants can’t be charged letting fees. However, landlords and agents can recover their costs in certain situations.
A letting fee is any fee charged by a letting agent or solicitor to cover costs like:
- listing and advertising rentals
- showing houses
- vetting potential tenants.
If you’re a property manager, make sure you’ve updated your listings to remove any mention of letting fees.
There are some situations when landlords or property managers can have their costs reimbursed by the tenant. For example:
- If one tenant wants to leave a group tenancy, and be replaced by a new tenant
- If a tenant wants to sublet the property
- If a tenant wants to end a fixed term tenancy early
If tenants want to do any of these things, there is usually a cost to the landlord or property manager (eg, to carry out checks on new tenants). As these changes are at the tenant’s request, the landlord or property manager can have their costs reimbursed. Remember that all costs must be reasonable.