Contract Holder Fees

In Wales it is an offence under the Renting Homes (Fees etc.) (Wales) Act 2019, for a landlord or agent to charge contract holders (tenants) any prohibited payments/fees.  The following are payments that are permitted under the Act and are inclusive of VAT (where applicable):

• Security deposit (bond) equivalent to 5 week's rent VAT exempt; plus a pet deposit of £100 per pet VAT exempt
• Holding deposit equivalent to 1 week's rent VAT exempt
• Monthly rent VAT exempt
• Payments in default* as shown below;
• Payments in respect of council tax payable directly to local authority;
• Payments in respect of utilities payable directly to utility provider;
• Payments in respect of a television licence payable directly to TV Licensing;
• Payments in respect of communication services payable directly to service provider

Please note the following additional payments that are permitted for contract holders with Standard Occupation Contracts: 

Right to retention of holding deposit for providing false and misleading information: A landlord or agent may be entitled to retain a holding deposit should a tenant have provided false or misleading information at the time of applying for a tenancy.

Right to retention of holding deposit for failing to enter a tenancy agreement: Should a tenant choose not to enter a tenancy agreement, or fail to take reasonable steps to enter a tenancy agreement, a landlord or agent may be able to retain the holding deposit.

Early termination of contract in situations where you want to leave a fixed-term tenancy early, the landlord is fully within their rights to expect to be paid for the entirety of the tenancy. This payment is VAT exempt.

* Examples of payments in default are: 

• Missed appointments – if an appointment is arranged and the tenant fails to keep the appointment: the contractor cost will be charged.
• Avoidable/purposeful damage to property – if damage is caused by neglect/wilful behaviour by the tenant: the contractor and material costs will be charged.
• Replacement keys/security device – loss of keys by the tenant requiring new keys: the material cost will be charged.
• Emergency/out of hours call-out fees – if the emergency callout arises from the fault or request of the tenant: the contractor and material costs will be charged.  
• Late payment/unpaid rent when rent is more than 7 days late - Bank of England's base rate + 3% per annum. 
• Bank charges - incurred by the landlord in the event of unpaid rent: equivalent to costs incurred.