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Tenants

Tenant Fees Act 2019

We cover Milton Keynes and surrounding areas and aim to rent the best properties available. Under the Tenant fees Act 2019 Mason Kelly will not charge fees to enter into an assured shorthold tenancy. Please see below for more information.

Landlords or agents cannot require tenants, or anyone acting on behalf of a tenant or guaranteeing the rent, to make any payments in connection with a tenancy unless they have specifically been made a permitted payment in the Act.

Permitted Charges in accordance with the Tenant Fee Act 2019 for an Assured Shorthold Tenancy

  • Holding Deposit - Maximum one week of the rent agreed

  • Rental Payments

  • Tenancy Deposit 5 or 6 weeks depending upon the rental amount Example rents under £50,000 per year the deposit will be capped at 5 weeks rent agreed, if the rent is over £50,000 then a 6 week deposit will be required.

  • Late Rent Interest charged at 3% above Bank of England base rate when rent is more than 14 days late

  • Early Termination (when requested by the tenant) A charge not exceeding the financial loss experienced by the Landlord - £360 inc VAT

  • Lost Key/Security Device Equivalent to cost incurred

  • Changing Tenancy Documents (after commencement of tenancy) £50.00 incl. VAT

  • Payments in respect of utilities, communication services, TV licence and council tax.

  • Check Out Fee - No charge

  • Late Payment Fee - No charge

  • Contract Renewal Fee - No charge

For more information Tenant Fees Act please refer to Tenant Fees Act 2019: guidance - GOV.UK (www.gov.uk)

We will not start referencing unless we have discussed with you your ability to afford the property prior and ensuring that you have no CCJ’s, bankruptcy or IVA’s without first confirming if you would have a suitable guarantor. The income requirements are as follows;

Income requirements are equivalent to 2.5 x of the annual rent. Example if the rent is £1200pcm this is multiplied by 12 = £14,400 to give the annual rent and this figure is multiplied by 2.5 which would be the required level of income of £36,000. Guarantor requirements is 3 x the annual rent. Example if the rent is £1200pcm this is multiplied by 12 = £14,400 to give the annual rent and this figure is multiplied by 3 which would be the required income of £43,200 and must be a home owner and reside in the UK.

Example of income requirements listed below

Rental Value pcm Tenant income level Guarantor Income level
£750 £22,500 £27,000
£1000 £30,000 £36,000
£1250 £37,500 £45,000
£1500 £45,000 £54,000
£1800 £54,000 £64,800

Non Housing Act tenancy fees not affected by the Tenant Fee Act 2019 (Company Lets)

  • Tenancy Set Up Fee one - three persons £360.00 incl. VAT

  • Tenancy Set Up Fee Company £480.00 incl. VAT

  • Each Guarantor £60.00 incl. VAT

  • Execute Deed of Guarantee £60.00 incl. VAT

  • Renewal of Tenancy £60.00 incl. VAT

  • Tenancy Deposit Usually 1.5 month’s rent subject to Landlord’s agreement Landlord’s Reference £30.00 incl. VAT

  • Late Payment and/or Breach of Tenancy Letter £36.00 incl. VAT

  • Copy Paperwork (per item) £3.00 incl. VAT

  • Arrangement of remedial work on check out (Admin Fee) 12% of the capital costs of all works carried out Return of any overpayments £18.00 incl. VAT

  • Non attendance for arranged appointment £36.00 incl. VAT

  • Pet Fee £180.00 incl. VAT

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