Call of the month: Pets and deposits

A landlord gave our expert advice team a call this month to ask a question about deposits and a prospective tenant who has a cat.

The member told the adviser that the last tenant to have lived at their rental property also had a small pet. This tenancy had lasted for more than five years and the tenant moved out in January.

The previous tenancy started back in 2016, when our landlord had charged the tenant a slightly higher deposit of six weeks rent, which the tenant was happy to pay.

Our landlord was aware that the rules around deposits have changed since 2016, and he gave our advice team a call to double check the amount of deposit he’d be able to charge, since he was keen to re-let the property to the new tenant from June.

The advice from the team

Our advisor confirmed that the Tenant Fees Act, introduced in England in June 2019, banned or restricted charging a number of fees in England for new tenancies. As of 1 June 2020, this was extended to include most existing tenancies as well.

Landlords can still take a security deposit, but it is now limited to a maximum of five week's rent where the annual rent is below £50,000 in England (six weeks where the annual rent is £50,000 or more).

So, unlike the last time our landlord rented their property out to a tenant with a pet, this time around our adviser confirmed they would only be able to charge for five weeks rent as a deposit, and not anything extra.

Charging any more than this would be classed as a prohibited fee under the legislation.

Our advisor did suggest that, if the landlord had concerns about potential damage to the property, he could potentially charge a higher rent. This is permitted under the Tenant Fees Act and tenants are often happy to pay a higher rate to secure a home where their pet is allowed.

Our adviser recommended our landlord also read the NRLA’s new guidance on pets in properties. The guidance has plenty of useful information for landlords around things to consider when letting to a tenant with a pet, such as checking the property is suitable and large enough for the animal.

To read the NRLA guidance on pets in properties, click here. To learn more about the Tenant Fees Act, read our guidance for landlords.