You’re about to take money from a new tenant and you want to be sure every payment is allowed. The rules (the Tenant Fees Act 2019, or TFA) look straightforward at first glance: no admin fees, no referencing fees, no inventory fees. But seven years in, enforcement tells a different story. Councils issue £5,000 civil penalties for a single banned fee on first breach, and £30,000 (or criminal prosecution) for repeat offences.
The Renters’ Rights Act 2025 doesn't replace the TFA; it sits alongside it. Its ban on rent-in-advance beyond one month from 1 May 2026 effectively closes one of the last loopholes used to dress up banned fees. Three areas are worth checking first: holding deposits kept too long, default fees beyond actual loss, and asking for 6 months' rent up front.
This guide lists every payment that is legal under the TFA + RRA 2025 combined, the exact caps, and the three record-keeping habits that keep you out of trouble.
The permitted payments: complete 2026 list
Only the following payments may be required from a tenant on an assured shorthold tenancy (until 1 May 2026) or assured periodic tenancy (from 1 May 2026 onwards) in England:
| Permitted payment | Cap / rules | Notes |
|---|---|---|
| Rent | No cap on amount, but since 1 May 2026 only the first rent payment can be taken before the tenancy starts (RRA) | Must be clearly defined in the tenancy |
| Refundable tenancy deposit | Up to 5 weeks' rent (6 weeks if annual rent ≥£50,000) | Must be protected within 30 days |
| Refundable holding deposit | Up to 1 week's rent | Deadline for agreeing the tenancy: 15 days, unless you both agree a later date in writing. If the let doesn't go ahead, refund within 7 days (unless an exception applies) |
| Default fees | Only late rent + lost keys | Late rent: only after 14 days, capped at 3% above Bank Base. Lost keys: actual cost only |
| Utilities, council tax, communications, TV licence | Actual cost only | If expressly included in the tenancy |
| Variation / assignment fee | Up to £50 | Only at tenant's request |
| Early termination fee | Landlord's actual loss | Only if tenant requests it |
Anything not on this list is a prohibited payment, regardless of how it's labelled.
The first money to change hands is often a holding deposit, and it runs on its own clock. From £7.99 a month, LetCompliance records each holding deposit with its 15-day deadline and emails the applicant the amount, the deadline and their rights, then starts the tenancy deposit's 30-day protection clock once the tenancy is made. Get started
Three areas to check
1. Holding deposits kept past the deadline
You can take a holding deposit of up to 1 week's rent. The deadline for agreeing the tenancy is day 15 (counting the day you received it), unless you both agree a later date in writing. If the let doesn't go ahead, refund it in full within 7 days, unless the tenant pulled out, failed a Right to Rent check or gave you false information. Keep the emails and dates so you can show when each step happened.
2. "Cleaning fees" dressed up as default fees
You cannot charge a flat £100 "cleaning fee" at the end of the tenancy as a matter of course. You can deduct from the deposit for specific damage or cleaning beyond "fair wear and tear", evidenced with invoices.
3. Rent-in-advance beyond 1 month (RRA 2025)
The classic "pay 6 months up front as foreign tenant / sole trader / poor referencing" is banned from 1 May 2026. Beyond the first rent payment and a deposit of up to 5 weeks' rent, asking for money up front is a banned payment.
Acceptable workarounds:
- Guarantor (UK resident, passes references)
- Higher rent (as long as it's the same for all tenants and not a disguised deposit)
- Professional guarantor service (Housing Hand, Homepact etc.)
Record-keeping: the three habits
Habit 1: Itemise every payment in the tenancy agreement
Ambiguity is your enemy. List: "rent £X/month + refundable deposit £Y + utilities at actual cost (council tax, gas, electricity, water)". Do not say "plus agent's costs" or "admin fee".
Habit 2: Issue dated receipts for every payment
Every payment in and out should be traceable. Bank transfers beat cash. If a tenant pays you directly, issue a PDF receipt same day.
Habit 3: Document default fee workings
If you charge for lost keys, keep the locksmith invoice. If you charge late-rent interest, show the Bank Base calculation and the 14-day clock.
Penalties 2026
- First breach: civil penalty up to £5,000 (Trading Standards)
- Second breach within 5 years: up to £30,000 or criminal prosecution
- Plus repayment: the tenant can apply to the First-tier Tribunal to get a prohibited payment back (section 15 of the Act)
FAQs
Can I charge a check-out inventory fee?
No. Check-in and check-out inventory fees are prohibited, so the landlord bears that cost.
Can I charge a referencing fee?
No. A flat tenant-paid referencing fee is banned. You must pay the referencing provider yourself.
Can I charge for a replacement tenant?
Only your actual, reasonable costs (re-listing, viewings, new contracts). Capped at the rent until a replacement is found.
Does the TFA apply to company lets?
No. Company lets are outside the Housing Act 1988 assured tenancy rules and the TFA doesn't apply. But many corporate landlords voluntarily mirror it.
Is rent-in-advance always banned from May 2026?
Since 1 May 2026, only the first rent period can be paid between signing and the start of the tenancy (Housing Act 1988, section 4B). A term that makes later rent payable in advance has no effect, and rent taken before the tenancy is signed is a prohibited payment. Whether you pressed the tenant isn't the test. For a harder-to-reference tenant, use a guarantor or rent guarantee cover instead.
Where to go next
- UK landlord fines 2026: where TFA fines sit among the other penalties
- Deposit prescribed information: the 30-day deposit protection rule
- Renters’ Rights Act checklist: the rent-in-advance ban and more
Get started. Every payment you take at the start of a let is one you may have to account for later. LetCompliance collects the rent by Direct Debit (paid plans), issues a PDF receipt for each payment, and logs the deposit, rent and any default fee against the tenancy in the rent ledger. The tenant sees the same record in their free tenant portal, so there is one dated version of what was paid and when.
Sources and scope
- GOV.UK: Renting out a property
- GOV.UK: Your landlord’s safety responsibilities
- HSE: Gas safety in rented properties
Every figure on this page is cited to GOV.UK, legislation.gov.uk or HSE and reviewed against the live source every quarter. This is guidance, not individual legal advice.
2026 UK Landlord Compliance Cheat Sheet
The main duties, deadlines and maximum penalties for a private let in England on two printable A4 pages, and which failures stop a possession order. Updated for the rules in force since 1 May 2026.
- Duties before and during the tenancy, with the deadline for each
- Maximum penalties, including the £40,000 electrical safety figure
- Which failures bar a Section 8 possession order, and which do not
- The possession grounds landlords use most, with notice periods
Frequently asked questions
What fees can landlords still legally charge in 2026?
Only: rent, refundable tenancy deposit (up to 5 weeks’ rent, 6 weeks if annual rent ≥ £50k), refundable holding deposit (up to 1 week’s rent), default fees (late rent at 3% above Bank Base after 14 days; lost keys at actual cost), utilities/council tax/TV licence (actual cost), variation/assignment fee at tenant’s request (capped at £50), and early termination fee (landlord’s actual loss). Everything else is a prohibited payment.
Can I still take 6 months’ rent in advance in 2026?
No. From 1 May 2026 rent paid before the tenancy is signed is a prohibited payment, and once it is signed only the first rent period can fall due before the tenancy starts; a term making later rent due in advance has no effect. The lawful ways to cover a harder-to-reference tenant are a guarantor or rent guarantee cover.
Is a cleaning fee at the end of tenancy legal?
No. A flat "end-of-tenancy cleaning fee" is a prohibited payment. You can only deduct from the deposit for specific damage or cleaning beyond fair wear and tear, and only with supporting invoices.
What is the penalty for a first-breach prohibited payment?
Up to £5,000 civil penalty from Trading Standards for a first breach, rising to £30,000 or criminal prosecution for a further breach within 5 years. The tenant can also apply to the First-tier Tribunal to recover the payment.
