Propertymark is urging agents and landlords to revisit the list of permitted payments to ensure they are remaining compliant and don’t fall foul of the Tenant Fees Act 2019 after an Oxford-based agent was stung and ordered to pay back fees.

Last week The Neg reported how Lettings agent Mark Rawlins of Letting 4 Oxford was ordered to pay tenant Stephanie Haynes £111.60 after Tribunal Judge Wayte found that he had overcharged her under the Tenant Fees Act 2019.

Judge Ruth Wayte ruled: “The Guidance on the 2019 Act for landlords and agents is clear that if a tenant has found a suitable replacement tenant, it is unlikely that a fee above £50 can be justified and that any costs above that amount should be evidenced.”

COMPLIANCE

Propertymark’s Matt Eades says that the case not only shows how important it is that both landlords and their agents ensure compliance with the Tenant Fees Act 2019 and are transparent with their business dealings but also highlights the value of recording any work undertaken to ensure they’re paid fairly.

He told The Neg: “Fees are prohibited only if they exceed ‘reasonable costs’, so if work has been done and is well-documented, a Tribunal is more likely to find in favour of an agent or landlord.

What this decision implies is that there may well be circumstances in which the cap of £50 can be exceeded.”

“What this decision implies is that there may well be circumstances in which the cap of £50 can be exceeded.”

Eades adds that agents must remember that landlords can seek damages from a tenant which results from a breach of contract.

He says: “In theory, such damages might equate to or even exceed what an agent might charge for a swap of a tenant.

“Propertymark encourages agents and landlords to revisit the list of permitted payments to ensure they are compliant and do not fall foul.”