OpenRent Community

Maximum Tenancy Deposit: the New Rules and How to Calculate 5 Weeks' Rent

#1

Originally published at: https://blog.openrent.co.uk/maximum-tenancy-deposit-the-new-rules-and-how-to-calculate-5-weeks-rent/

From 1st June, landlords will only be able to take five weeks’ rent as a tenancy deposit. This increases to six weeks for properties whose rent exceeds £50,000 per year. Tenancy Deposit Calculator We have developed a calculator to quickly tell you the maximum tenancy deposit you can collect after the Tenant Fees Act commences…

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#2

If you want to “round off” you must round down and not up. If you round up you will be breaking the law as you are charging more than 5 weeks rent (even if it is by 1p).

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#3

Really good point, Clive!

#4

We’ve updated the tool to make sure it always rounds down. Cheers Clive!

#5

If we collected six weeks under the old rules, do we need to return one week now?

#6

Yes if you renew before 1st June 2020. From 1st June 2020, you’d need to make sure any deposits were a maximum of 5 weeks’ rent.

#7

Thanks!

Will OpenRent handle that automatically?

#8

Hi Shaun,

We transfer the deposit to the landlords name as part of Rent Now, so we’re not able to handle this for landlords.

If you’d find it useful, however, we could produce a guide on how to do it and when it needs to be done by?

Sam

#9

That would be great - anything to help would be appreciated! I don’t want to run afoul of the law without even knowing it!

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#10

I’m looking for one bed flat for rent in Leicester must except housing benefit could you please let me now thank you so much Susan.

#11

OK Shaun, will get the team to write something up!

#12

Hi Susan, you can search all our properties here:

https://www.openrent.co.uk/find-flats-and-houses-for-rent-online