The Tenancy Deposit Scheme (TDS) has developed a deposit cap calculator tool for landlords, ahead of the upcoming tenant fee ban in England.
Under the Tenant Fees Act, from 1st June 2019, landlords and letting agents in England will only be allowed to take the equivalent of five weeks’ rent as a tenancy deposit on annual rents below £50,000, for new and renewed tenancies. If the total annual rent is £50,000 or above, deposits will be capped at six weeks’ rent.
To help landlords prepare for this, Tenancy Deposit Scheme has launched a suite of useful tools for landlords, including a Deposit Cap Calculator tool which enables landlords to calculate how much they are able to charge as a deposit. Letting agents will be able to embed the calculator in their own websites.
Rebecca Johnston, Managing Director of TDS Custodial, said: “Despite the Tenant Fees Act coming into force in 60 days, there is still confusion in the market about how, exactly, it will affect people.
“One of the most common issues we’re seeing among landlords and letting agents is how the five weeks’ rent could be miscalculated, meaning some could inadvertently be caught on the wrong side of the law come June. It’s not simply a case of one and a quarter months’ rent. That’s why we’ve created our Deposit Cap Calculator to take the confusion out of the process”
DepositGuard offers RLA landlord members deposit protection at discounted rates, brought to you in partnership with the Tenancy Deposit Scheme.
Meanwhile, the tenant fee ban in Wales is a step closer, with the Renting Homes (Fees etc) (Wales) Bill now awaiting Royal Assent after being approved by AMs at stage 4 last week.