Rent is a permitted payment. The amount of rent charged is often influenced by the rent amounts of similar nearby properties. It may sometimes be inclusive of other charges- like utilities or council tax.  

The tenancy contract should say exactly what is included in the rent. It should also give a recurring date when rent is due. This is often monthly, and paid in advance. For example; if rent is due on the 19th of every month, it will need to be paid on 19 January, 19 February, 19 March and ongoing until the end of the tenancy. The rent paid on 19 January covers occupancy until 19 Feburary. 

Rent can be changed. It may be that both the tenant and the landlord simply agree on a rent change. 

Otherwise, the process for a rent change depends on the type of tenancy: 

• Fixed term tenancy- there may be a rent review clause in the contract that allows for rent increases or decreases during the fixed term. 

• Periodic tenancy- landlords can change the rent using the Section 13 process. This can only happen once a year, and the landlord must give at least one month’s notice of the change. 

• New tenancy agreement- the landlord can change the rent when a tenancy ends and they are issuing a new rental agreement.  

Tenants should be aware of front-loading. This is when the contract states that rent will decrease after a set period. Landlords may try to do this to cover costs incurred before the start of the tenancy, but this is a banned fee.  

A tenancy deposit is a sum of money paid to a landlord at the beginning of a tenancy. This will be returned to the tenant at the end of the tenancy, with possible deductions as agreed by the tenant and landlord. 

Renting out a property can be a risk for a landlord; the tenant may cause damage, remove furniture or appliances, or leave without paying their rent. Taking a deposit means the landlord can cover these costs even if the tenant cannot or will not pay them. 

A tenancy deposit is not an advance rent payment or a holding deposit. 

More information can be found here;

A holding deposit is a permitted payment, but must follow the specific rules set out in the Tenancy Fees Act 2019. 

Prior to offering a contract, landlords or letting agents perform pre-tenancy checks to ensure the tenant will be able to meet the terms of the tenancy contract. These may include checking: 

• ID 

• References 

• Income 

• Immigration status (Right to Rent) 

Before beginning these checks, the landlord or letting agent may take a holding deposit from the prospective tenant. This is to ensure the tenant’s intention to rent is genuine before engaging in the time-consuming process of pre-tenancy checks. It is a promise from both tenant and landlord that they intend to enter into a contact after the tenancy checks are completed. A holding deposit agreement should specifiy the property, move-in date, and amount of rent. It does not need to be lodged in a deposit protection scheme. 

A holding deposit cannot exceed the amount of one week of the total property’s rent, even in a joint tenancy. A landlord can only take one holding deposit for each property, and should stop advertising the property immediately. 

After receiving the deposit, the landlord has 14 days until the ‘deadline for agreement’ to complete pre-tenancy checks and enter into the tenancy agreement, unless an alternative ‘deadline for agreement’ ids decided upon. 

A holding deposit agreement will end with either the tenancy agreement being signed, or either party deciding not to enter into the tenancy. From the day of this decision, the landlord has 7 days to return the deposit, or inform the tenant of alternative arrangements.  

A holding deposit is usually refundable, unless: 

• The tenant does not have the right to rent (based on immigration status) 

• The tenant has deliberately provided false or misleading information 

• The tenant withdraws from the process; then the landlord can deduct the amount for costs incurred, and return the remaining amount within 7 days. 

• The tenant does not sign the rental agreement prior to the deadline for agreement. 

When a tenancy agreement has been signed, the landlord may prefer to keep the holding deposit and put it towards either: 

• The tenancy deposit (must be lodged with a protection scheme in assured shorthold tenancies), or 

• The tenant’s first rent payment. 

A default fee is one specified in the tenancy agreement also allowed under the Tenancy Fees Act 2019. The agreement should outline the reason for the fee, and the way in which it will be calcualted. 

Default fees are allowed when a tenant is late paying rent, or when they lose their key/security device. More information on those scenarios can be found below. 

When a tenant loses their keys, the landlord may need to take action to ensure the tenant has access to the property, and that the property remains secure. There are a range of costs which may be incurred, and the tenant should be billed proportionately. 

1. The tenant loses their key and the landlord replaces it. The landlord may charge the tenant for the cost of the new key. 

2. The tenant loses their key, which is clearly marked with the property’s address. Anyone who finds the key would now be able to find and access the property. A locksmith is called to replace all locks related to the lost key(s). The landlord may charge the tenant for the locksmith’s fee, the new lock(s), and new keys. 

This applies only to when a tenant has lost their key, not lock replacements for other reasons. If the lock was very old and had become unusable or insecure, this would be considered wear and tear. The landlord could not charge a fee for the replacement of a worn, faulty, or incorrectly installed lock. 

The tenant is not responsible for paying the charge until evidence is provided. Tenants should make this request in writing. If the tenant pays this fee, the landlord cannot then make a deduction from the deposit for the same charge. 

A landlord can charge a fee for late rent payments, but only once the rent has been outstanding for 14 days. They can then charge a fee for every day the rent is late, including the initial 14 days. This fee is intended to cover lost income from interest payments on that rent amount. 

It is recommended that tenants who are struggling to pay rent on time communicate this with their landlord prior to the payment date. The landlord does not need to help, but it may be that they can offer extra time or a temporary rent reduction. 

The late payment fee is a percentage of the rent owing. That percentage cannot exceed 3% above the Bank of England’s base interest rate, known as the Bank Rate. 

Prospective tenants who have been asked to make a Prohibited Payment should immediately report this to their local authority’s Trading Standards Office. In London, reports of rogue landlords and agents can also be made to the London Assembly. 

Tenants who believe they have been charged banned fees should immediately contact their landlord or agent (in writing) to request the return of those funds.  

If an agent refuses to return the funds, the tenant should notify the agent’s redress scheme. All letting agents must belong to a Government-approved redress scheme, and this information should be clearly available on the agent’s website. The redress scheme will offer a free and independent dispute resolution service. 

If a landlord refuses to return the funds, the tenant should contact the local authority’s Trading Standards Office. They can take formal action to force repayment of the fees, and may also require the landlord to pay interest on the fee amount. 

Tenants may also choose to take their landlord or agency directly to the First-Tier Tribunal, who can order a repayment of fees. There may be a small cost involved in making the claim. Tenants should collect and submit relevant evidence to support their claim.