Rent
The rent should be fair and in line with other similar properties in the area.
Rent should be required at regular intervals and should be equally split across the tenancy. From 1 May 2026, you cannot ask for a tenant to pay rent before the tenancy agreement is signed.
If a tenant offers you rent before the tenancy agreement is signed, you must not accept it.
You can ask for a maximum of 1 month’s rent in advance after you and your tenant have signed the tenancy agreement and before the tenancy start date.
You can refer to the rent payments and deposits guidance for more information.
Refundable tenancy deposit
You can require a tenancy deposit of up to 5 weeks’ rent for properties where the annual rent is below £50,000.
For tenancies with an annual rent of between £50,000 and £100,000 you can require up to 6 weeks’ rent.
You do not have to take a tenancy deposit. If you do take a deposit, you must protect it in a government approved scheme.
Refundable holding deposit
You can ask a potential tenant to pay a deposit to hold the property while you undertake reference and pre-tenancy checks. The maximum holding deposit you can ask for is equivalent to 1 week’s rent.
You cannot accept more than one holding deposit per tenancy at a time.
The standard amount of time you can hold the deposit for is 15 calendar days after receiving it. You can agree a longer or shorter time period with the tenant in writing.
You do not have to take a holding deposit.
The maximum deposit amount is per tenancy not the number of tenants. For example, if three potential tenants want to share a flat on the same tenancy agreement, they would pay a total of 1 week’s rent between them.
Refunding the holding deposit
You must refund the holding deposit unless the tenant:
- fails a Right to Rent check
- withdraws from the application process
- does not respond or contact you to progress the tenancy
- gives you false or misleading information that affects their suitability as a tenant
If the tenant has given incorrect information that does not affect their suitability as a tenant, for example, a misspelling or a missing previous address, then you must return the holding deposit.
If the tenant signs the tenancy agreement, you must refund the holding deposit. You could refund this by reducing the amount of the first month’s rent or reducing the tenancy deposit. This can only be done with the tenant’s agreement.
For all other circumstances, you must return the deposit within 7 days. If you do not return it, you may receive a financial penalty.
If you keep the holding deposit
If you do not tell the tenant the reason for your decision in writing within 7 days you may receive a financial penalty.
Utilities and other bills
You can include the costs of utilities such as gas, electricity, water bills and communication services such as broadband and a landline phone in the rent payment. You can also require the tenant to pay you for some utilities and other bills separately.
If some or all of these bills are included, these must be listed as terms in the tenancy agreement. Any utilities included in the rent must be an accurate reflection of costs.
You cannot make a profit from reselling utilities as set out in the following legislation:
- the Office of Gas and Electricity Markets (Ofgem) fixes maximum resale prices under section 44 of the Electricity Act 1989 and section 37 of the Gas Act 1986
- the Water Resale Order 2006 governs the maximum price for water
Council tax
- You can include a payment for council tax within the rent where this is agreed in the tenancy agreement.
- If payments for council tax are not included in the rent, you can include a term in the tenancy agreement requiring the tenant to pay council tax to the relevant local authority.
- You cannot require a tenant to pay a separate, additional payment for council tax to you directly.
Television licence
- You can include a payment for a television licence within the rent where this agreed in the tenancy agreement.
- If payments for a television licence are not included in the rent, you can include a term in the tenancy agreement requiring the tenant to pay for a television licence.
- You cannot require a tenant to pay a separate, additional payment for a television licence to you directly.
Fees for tenancy changes
You do not have to charge a fee for tenancy changes.
Where a tenant requests a change to the tenancy agreement, for example, adding or removing a person, you can charge up to £50 for the work involved in updating the agreement. If the costs are higher, you should give evidence to a tenant that any fee charged above £50 is reasonable.
Payments when a tenant wants to end a tenancy early
If your tenant does not give the correct amount of notice to end a tenancy, you can charge a fee. This cannot be more than the amount of rent that you would have received if the tenant gave the right amount of notice.
Default fees
You can charge the tenant a default fee if this is included in the tenancy agreement.
You should make the tenant aware of these fees before they sign the tenancy agreement.
You can charge a default fee:
- for the loss of a key or other security device giving access to the property
- for late payment of rent
Replacement keys, security devices or fobs
The tenant is responsible for looking after the keys for the property throughout the tenancy.
You can charge the tenant the cost of replacing a key or other security device.
You must provide evidence in writing to the tenant to show the costs you have incurred are reasonable.
Late payment of rent
Rent must be overdue by at least 2 weeks before you can charge a fee.
The maximum fee rate is 3 per cent above the Bank of England’s base rate. You can only charge a fee on the amount that is overdue.
If the amount of rent that your tenant owes you changes, for example, on the rent due date or when the tenant makes a payment, you should recalculate the new sum. This would be the number of days the new sum has been outstanding, and any change to the base rate.
You should apply default fees on a case by case basis. For example, it may not be appropriate to charge a default fee where a tenant has provided a reasonable explanation for a late rent payment and sufficient notice that the payment would be delayed.
This is especially the case if a tenant normally pays their rent on time or their rent is late for a circumstance outside of their control.
For example:
- banking systems are down
- delayed Housing Benefit or Universal Credit payments
If your tenant seems to be struggling to pay the rent, you should consider contacting them earlier to discuss their circumstances.
You could agree to more frequent payments or adjusting the rent due date, for example, to the day after the tenant gets paid.
You can also suggest they contact Citizens Advice for help with managing money.
Damages for breach of contract
You can require a payment of damages for breach of a tenancy agreement. Damages are the general remedy available for a breach of a tenancy agreement or an agreement between you and the tenant.
In most cases, it will be appropriate to recover damages through the tenancy deposit at the end of the tenancy. However, you may seek to recover damages during the tenancy where this is appropriate. For example, you may ask a tenant to cover the cost of repairing a fixture, fitting or furnishing where the repair cannot reasonably wait until the end of the tenancy (for example, a broken window) and the tenant is responsible for the damage. This may be through agreement with the tenant or through legal proceedings.
You can only require a payment of damages to recover losses or costs that you have actually incurred as a result of the contractual breach. Any claim for damages must be supported by evidence of the loss suffered or costs incurred (unless this is for a default fee for a late payment of rent or lost key/security device which is required under the tenancy agreement). You should provide this evidence to the tenant.
Claims for damages which are aimed at deterring a breach of contract or punishing a tenant for a breach are generally not enforceable. The following clauses are examples which are likely to be considered unfair terms because they impose fixed charges or penalties that are not linked to a genuine loss incurred by the landlord:
- £25 fixed penalty charge for any letters, emails or phone calls used to chase rent arrears that are 7 days or more overdue
- a blanket £100 per hour for a contractor to visit the property to carry out repairs or maintenance
- a fixed £50 charge for a missed appointment with a contractor
- if it is necessary to send a letter regarding late payment of rent, the tenant must pay £25 plus VAT. Personal visits are charged at £75 plus VAT
Requirements to pay for cleaning
You cannot routinely require a tenant to pay a fee for cleaning. Any automatic requirements to pay for cleaning would likely be a prohibited payment.
However, a tenant is responsible for ensuring that the property is returned in the condition they found it, while allowing for fair wear and tear resulting from the tenant’s reasonable use of the premises. If the property is not returned in this condition, you can recover cleaning costs by claiming against the tenancy deposit or by claiming for damages as outlined above. Any claim should be supported by evidence of costs incurred.
Prohibited payments
If you require your tenant a fee that is not allowed this is called a prohibited payment.
If you don’t return the fee when requested, the tenant or their representative can report you. You may be issued with a financial penalty or be prosecuted if you have been issued with a previous penalty within the last 5 years.
It is also a prohibited payment if you require your tenant to take out a loan, pay for insurance or start a contract for a service.
A tenant can use a loan, insurance or contract if they choose to.
For example:
- a professional guarantor service
- a deposit replacement product
- an inventory service
You can ask a tenant to provide a suitable rent guarantor as a condition of granting the tenancy, in these circumstances, a tenant could choose to contract a professional guarantor service.
If you have a guarantor agreement in place that was entered into before 1 May 2026, then the terms of that agreement could be affected by the tenancy reforms included in the Renters Rights Act. Landlords should therefore review any existing guarantor agreements in place and obtain the consent of the guarantor to any variations to the agreement that may be required.
Landlords and letting agents should seek independent legal advice if they are unclear whether a guarantor agreement is affected.
If someone reports you for requiring a prohibited payment
The local council can investigate you or your letting agent if you are reported for requiring a prohibited payment.
If the local council finds that you have required a prohibited payment they may issue a financial penalty.
For the first occasion the maximum penalty is up to £5,000.
If you have committed a second or subsequent breach within 5 years of a previous penalty, you can be taken to court or issued with a penalty of up to £30,000.
If you are prosecuted, the fine you would have to pay would be an unlimited amount. A prosecution is a banning order offence which would stop you from letting out or managing property. If you have been given a banning order you will be added to the rogue landlord database.
Your tenant can also apply to the First-tier Tribunal who can order you to return the fee.
Appeals
You can appeal against a financial penalty or having to repay the prohibited payment through the First-tier Tribunal.
The deadline for an appeal is 28 days from the day after the final notice for the penalty was given to you or 7 to 14 days after you have to pay the prohibited payment.
An appeal reviews the council’s decision and may take into account other evidence.
On appeal, the First-Tier Tribunal may confirm, change or cancel the final notice.
Information from Gov.uk: Fees you can charge as part of a tenancy
For the statutory guidance for enforcement authorities: Tenant Fees Act amended by the Renters’ Rights Act 2025 – GOV.UK