Illegal Tenant Fees – What You Should Know
Are you a Tenant?
Did your Letting Agent or Landlord charge you a fee to obtain a lease?
If so, did you know that this is illegal?
In 2012, the Scottish Government made it illegal for Landlords and Letting Agents to charge tenants fees relating to:
- Completing an application
- Granting a lease
- Preparing an Inventory
- Administration
However incredibly, there are still agencies charging these fees several years after they were banned. Tenants should only have to pay rent and deposit (maximum of 2 months).
Some agencies may say that they use a 3rd party to obtain references. It doesn’t matter! These fees too, are illegal and should not be paid.
In addition, if you have been charged a fee to renew or extend your lease as a tenant, these are also banned.
The good news is, if you have been charged any of the above fees since 2013 to obtain a lease, you can claim this money back following the steps below:
- Write a letter to the agency and ask them to return the fees stating that you have been charged an “illegal premium”. Be sure to sign and date it.
- Include any proof of the transaction (bank statement, receipts).
- Send a copy of the letter to the letting agent but keep a copy for your records.
- If the Letting Agent doesn’t respond to you after 7 days, send a 2nd letter to them, quoting the legislation that makes these fees unlawful (Section 82, Rent (Scotland) Act 1984) and warn them that you are willing to pursue a “simple procedure” in court if they do not return the fees. Include a copy of the 1st letter that you sent.
- If the Letting Agent still doesn’t respond, you can begin to take legal action. It’s an easy procedure via the First Tier Tribunal and it’s FREE to apply.
