Updates made to Tenant Fees Toolkit Wales in light of changes to default fees

The Renting Homes (Fees etc.) (Wales) Act 2019, which gives Welsh Ministers the power to prescribe a list of payments in default and a limit of what is permitted, applies to all tenancy agreements signed on or after 28 April 2020.

Propertymark has updated its Tenant Fees Toolkit Wales to help agents understand the fee ban and the recent changes. It comprises of a whole host of resources which include a series of template documents, case studies from Scotland, bite-size videos, and FAQs.

Payments in the event of a default 

The Renting Homes (Fees etc.) (Prescribed Limits of Default Payments) (Wales) Regulations 2019 specify the limits (prescribed limits) for certain types of payments required in the event of a default by a tenant on their tenancy agreement.

What does this mean?

A payment in default is a payment required by the landlord or agent arising from a breach of the tenancy agreement by the tenant, whether late payment of rent by its due date or some other breach. Where a default arises from late payment of rent, or where in order to secure access to their property a landlord has been required to add, remove, or change keys, locks or another security device, there is a prescribed limit for as to how much the tenant can be charged. The prescribed limits do not affect defaults arising from other breaches by the tenant of a term in the contract.

What you need to do

A payment in default can only be charged if there is a specific term in the tenancy agreement allowing for such a payment. A landlord or agent should then contact the tenant to inform then that they believe a breach of the contract has taken place. A tenant should be allowed to explain their position, should they disagree that a breach has taken place. Any demand for payment in default should be made in writing.

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Tenant Fees Toolkit

We have created a number of resources to help our members comply with the complex tenant fee ban legislation. The toolkit includes videos, FAQs, a case study, fact sheets and more.