Deposits, Fees & Charges: What Landlords Can and Cannot Charge

When renting a home in England, financial rules clearly set out what payments a landlord or letting agent can legally ask you to pay. Under the Tenant Fees Act and the Renters' Rights Act, most hidden fees are banned, and security deposits are strictly capped to make renting fairer and more transparent.

Permitted Payments: What You Can Be Charged

Landlords and letting agents can only request payments that are explicitly authorized by law. Permitted payments include:

• Monthly rent: Regular rent as agreed in your tenancy agreement. Advance rent is capped at a maximum of one month's rent.
• Holding deposit: A refundable payment to hold a property while references are completed, capped at a maximum of one week's rent.
• Security deposit: A deposit to cover potential damage or unpaid rent, capped at five weeks' rent where total annual rent is under £50,000 (or six weeks' rent if annual rent is £50,000 or more).
• Changes to tenancy: A fee capped at £50 (or reasonable higher costs supported by evidence) if you ask to change or transfer tenancy terms.
• Default fees: Contractual charges for lost keys/security devices, or interest on rent unpaid for 14 days or more (capped at Bank of England base rate plus 3%).
• Utility bills and council tax: Charges for electricity, gas, water, broadband, or council tax if specified in your agreement.

Prohibited Payments: What Landlords CANNOT Charge

Any payment not explicitly listed above is illegal. Landlords and letting agents cannot charge you for:

• Viewing properties or registering with an agency.
• Credit checks, referencing, or background checks.
• Admin fees, contract drafting, or renewal fees.
• Check-in, inventory, or check-out inspection fees.
• Mandatory professional end-of-tenancy cleaning (landlords can only require you to leave the property clean to a hygienic standard).
• Excessive upfront rent beyond the statutory one-month limit.

If an agent or landlord demands a prohibited fee, they face civil fines, and they cannot enforce certain eviction notices until the illegal payment is refunded to you.

Deposit Protection Rules

When you pay a security deposit, your landlord must protect it in one of three government-approved schemes within 30 days of receiving it:

• Deposit Protection Service (DPS)
• MyDeposits
• Tenancy Deposit Scheme (TDS)

Your landlord must also provide you with formal 'prescribed information' within those 30 days, including details of the scheme used, how to claim your deposit back, and dispute procedures. If your landlord fails to protect your deposit or misses the 30-day deadline, you can apply to court to claim compensation of between one and three times the deposit value.

Getting Your Deposit Back at the End of Tenancy

At the end of your tenancy, your landlord should return your deposit promptly. Deductions can only be made for:

• Unpaid rent or utility charges.
• Direct damage to the property or missing items beyond fair wear and tear.

Landlords cannot deduct money for normal wear and tear resulting from everyday living (such as minor carpet scuffs or slightly faded paintwork). If you disagree with proposed deductions, you can use your deposit scheme's free Dispute Resolution Service. An independent adjudicator will review evidence from both sides (such as check-in/check-out inventories and receipts) and make a binding decision.

To review legal fee caps or deposit rules, visit the GOV.UK Tenant Fees Act collection, check Citizens Advice deposit return guidance, or read Shelter England advice on tenancy deposits.