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How Much Should You Charge For Security Deposit?

The Tenant Fees Act 2019, which applies to all agents and landlords in England, will be coming into force on 1st June 2019. The Act allows certain fees and charges, whilst others are defined as prohibited payments - you can read more about it here. The ban also limits the amount that a tenant may be charged for a holding deposit and security deposit and specifies what, in addition to rent, a tenant may be charged.

In terms of deposit, holding deposits are capped at one week’s rent. Security deposits are capped at 5 weeks’ rent where the annual rent is less than £50,000 and 6 weeks’ rent if the annual rent is over £50,000. To make this easier for landlords and investors, we have created a quick and easy deposit calculator to help you work out how much you should be charging.

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