What Fees Am I Legally Allowed to Charge in Wales, UK

In Wales, the Renting Homes (Fees, etc.) (Wales) Act 2019 sets out strict rules on what landlords and letting agents can legally charge tenants. The law was introduced to make renting fairer and more transparent and to protect tenants from unfair or excessive fees.

Under this law, most fees are banned. Landlords and agents can only charge permitted payments set out in legislation. Charging anything other than the specified amount is unlawful and may result in penalties.

Purpose of the Renting Homes (Fees, etc.) (Wales) Act 2019

The Act was designed to:

• Make the costs of renting more straightforward and more affordable.
• Prevent landlords and agents from charging excessive or hidden fees.
• Improve transparency in the private rented sector.
• Ensure tenants know exactly what they’ll have to pay before agreeing to rent a property.

By limiting fees to only those set out in law, the Act supports a fairer rental market across Wales.

Permitted Payments

Under the Act, only certain payments are legally allowed. These are:

• Rent
• Security deposits (within legal limits)
• Holding deposits (also within limits and with strict rules)
• Payments in default (for specific breaches such as late rent or lost keys)
• Utilities and other services that the tenant is responsible for under the contract..
• Council tax
• Communication services (e.g. internet, cable TV)

All other fees are banned.

Rent

Rent remains the core permitted payment.

Landlords can charge rent as agreed in the occupation contract. However:

• Rent demands must be clear and reasonable.
• Any arrangement for variable rent must be adequately detailed in the contract.
• Rent increases must comply with the Renting Homes (Wales) Act 2016, which generally requires at least two months’ notice for periodic contracts and limits increases to once every 12 months unless agreed otherwise.

Security Deposits

Landlords can request a security deposit to cover damages or breaches of the rental agreement.

But there are rules:

• The deposit must be protected in a government-approved scheme (e.g. Deposit Protection Service).
• The landlord must provide the tenant with prescribed information about where and how the deposit is protected.
• The amount must be reasonable—while there is no specific cap in Wales as in England, guidance suggests it should be fair and proportionate.

Failure to protect the deposit adequately can lead to penalties and restrict the landlord’s ability to serve specificc possession notices.

Holding Deposits

A holding deposit can be taken to reserve a property before the occupation contract is signed.

But the law places strict limits:

• The maximum amount is one week’s rent.
• Landlords or agents must provide clear written terms about how the holding deposit is handled.
• The deposit must be repaid under specific circumstances (for example, if the landlord withdraws or fails to proceed promptly).

There are rules on how quickly the money must be refunded if the tenancy doesn’t go ahead.

Payments in Default

Certain payments in default are permitted, but only for specific breaches of the occupation contract.

Examples include:

• Late payment of rent, but interest can only be charged at 3% above the Bank of England base rate and only if rent is more than 14 days late.
• Replacement of lost keys or security devices, but the charge must reflect the actual cost.

Landlords and agents cannot impose arbitrary or excessive default charges. All such charges must be fair and set out in the occupation contract.

Utilities and Services

Landlords can require tenants to pay for utilities and certain services if this is specified in the rental contract.

This includes:

• Electricity
• Gas
• Water
• Heating
• Council tax
• TV licence
• Communication services (e.g. broadband, satellite TV)

These costs must be genuine, not hidden fees or inflated amounts. For example, if the landlord recharges utility costs, they must only pass on the actual amount paid.

Banned Fees

The law bans all other fees.

Examples of fees that cannot be charged include:

• Tenancy setup fees.
• Inventory fees.
• Check-in or check-out fees.
• Renewal fees.
• Referencing fees.
• Administration fees.
• Fees for providing a written statement of the occupation contract.
• Charges for viewing the property.
• Charges for inspections during the tenancy.

Charging these banned fees is illegal.

Penalties for Charging Banned Fees

Landlords or agents who charge banned fees face serious consequences:

• Local authorities can issue fixed penalty notices of up to £1,000 for each breach of the regulations of the regulations.
• Tenants can apply to the county court for repayment of the unlawful fee.
• Courts can order the repayment of the fee plus interest.
• Persistent offenders can face unlimited fines and be banned from managing rental properties.

These penalties are designed to deter bad practices and protect tenants.

Enforcing the Rules

Local authorities in Wales are responsible for enforcing the Renting Homes (Fees, etc.) (Wales) Act 2019.

They have the powers to:

• Investigate complaints.
• Inspect premises and records.
• Issue fines and take legal action.
• Publicise enforcement action to deter others.

Tenants can also challenge unlawful fees directly in court.

Tenant Rights

Tenants in Wales have clear rights under this law:

• To know in advance precisely what they will pay.
• To refuse to pay any fee that is not permitted.
• To claim back any unlawful fee they have paid.
• To report landlords or agents to the local authority.
• To have their deposit appropriately protected.

These rights are backed by law and enforced by local authorities and the courts.

Landlord Responsibilities

Landlords must ensure they:

• Understand what fees are permitted.
• Avoid charging any banned fees.
• Set out all permitted payments in the written occupation contract.
• Provide prescribed information about deposits.
• Keep clear records of any payments taken.
• Comply with local authority investigations or enforcement action.

Failure to meet these responsibilities can lead to fines, legal action, and reputational damage.

Role of Letting Agents

Letting agents in Wales are also bound by the Act.

They must:

• Only charge tenants permitted payments.
• Advertise fees to landlords and tenants.
• Ensure all fees are transparent and fair.
• Assist landlords in complying with the law.

Agents who break the rules can face the same penalties as landlords.

Rent Smart Wales and Licensing

Rent Smart Wales manages landlord and agent licensing in Wales.

To get or keep a license, landlords and agents must:

• Complete approved training covering the fees ban.
• Demonstrate understanding of their legal duties.
• Operate in a professional and compliant manner.

Failure to comply can result in the loss of the right to let or manage rental properties in Wales.

Why These Rules Exist

The Renting Homes (Fees etc.) (Wales) Act 2019 was introduced to:

• Make renting more affordable for tenants.
• Stop landlords and agents from charging hidden or unfair fees.
• Increase transparency in the private rented sector.
• Create a level playing field for professional landlords and agents.

The law reflects the Welsh Government’s commitment to improving renting standards.

Best Practice for Landlords

Professional landlords should:

• Charge only permitted fees.
• Explain all costs clearly to tenants.
• Keep written records of all payments.
• Stay up-to-date with changes in the law.
• Complete Rent Smart Wales training.
• Treat tenants fairly and respectfully.

Supporting Tenants

Tenants benefit from these rules because they:

• Know exactly what they need to pay.
• Avoid unexpected or unfair fees.
• Can challenge any unlawful charges.
• Have access to local authority support.
• Enjoy greater security and transparency in renting.

External Useful Links

• Welsh Government Renting Homes Guidance: www.gov.wales/renting-homes
• Rent Smart Wales: www.rentsmart.gov.wales
• Shelter Cymru – Tenant and Landlord Advice: www.sheltercymru.org.uk
• Citizens Advice Wales – Housing Help: www.citizensadvice.org.uk/wales
• Law Wales – Renting Homes Act Overview: law.gov.wales/housing-and-local-services/renting-homes
• Renting Homes (Fees, etc.) (Wales) Act 2019 – Full Legislation: www.legislation.gov.uk/anaw/2019/6/contents

FAQs

What fees can landlords legally charge in Wales?

Only permitted payments: rent, security deposits, holding deposits (within legal limits), utilities, council tax, communication services, and certain default charges.

Are tenancy setup fees legal in Wales?

No. Setup fees, admin fees, and similar charges are banned.

What is the standard amount for a holding deposit?

A maximum of one week’s rent.

Can I charge for replacing lost keys?

Yes, but only the actual cost of replacement.

What happens if I charge a banned fee?

You could face fines of up to £1,000 per offence, court action, and repayment of the unlawful fee with interest.

Who enforces the ban on fees?

Local authorities in Wales.

Is training required?

Yes. Landlords and agents are required to complete training through Rent Smart Wales as part of the licensing requirements.

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