If you’re unsure how to work out the maximum tenancy deposit you can request from your new tenants, as per the Tenant Fees Act 2019, we have just the right tool for you.
Starting from June 1, 2019, landlords can only collect a tenancy deposit of up to five weeks’ rent. This increases to six weeks for properties whose rent exceeds £50,000 per year.
In addition, there are new rules regarding holding deposits, limiting landlords to accepting a maximum of one week’s rent as a holding deposit.
To make things simpler for you, we’ve created a handy calculator that quickly shows you the maximum tenancy deposit you can collect according to the Tenant Fees Act 2019.
- Deposit calculator
- New tenancy deposit rules
- How much is five weeks’ rent?
- Do I need to register the deposit differently after 1 June 2019?
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Simply enter your monthly rent amount for the property you’re leasing, and we’ll instantly show you the maximum security deposit you can charge.
Our calculator automatically adjusts the cap to six weeks’ rent if your annual rent surpasses £50,000, in line with the current regulations.
In both cases, the calculator also shows you the maximum holding deposit, which is equal to one week’s rent.
Enter your property’s monthly rental price. The calculator will show the maximum tenancy deposit that can be placed for the tenancy. Check out Rent Now to have all your landlord obligations handled automatically!
Enter Monthly Rent
Max Tenancy Deposit:
Max Holding Deposit:
New tenancy deposit rules
The Tenant Fees Act now limits landlords to a maximum deposit of five weeks' rent. This seemingly unusual number of weeks emerged as a compromise during discussions in the House of Lords, falling between the four and six-week proposals.
The new holding deposit cap of one week's rent will be much less than some landlords are used to collecting – but we still think that you will be adequately protected.
For example, a property that lets at £1,500 per month will have a maximum holding deposit of £346, which is still a considerable sum for a tenant to forfeit.
We rarely come across cases where holding deposits near this size are forfeited.
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How much is five weeks’ rent?
To calculate five weeks' worth of rent, follow these steps:
- Multiply your monthly rent by 12 to determine the annual rent
- Divide the annual rent by 52 to find the weekly rent
- Finally, multiply the weekly rent by 5 to get five weeks' worth of rent
Alternatively, for a quick shortcut, you can simply multiply your monthly rent by 1.15385!
Or for an even simpler solution, just put your monthly rent into the calculator provided above.
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Do I need to register the deposit differently after 1 June 2019?
No, the process remains the same, meaning you must still register the deposit as you did before.
You will need to protect the deposit within an accredited deposit protection scheme and serve the tenants with the prescribed information within 30 days of receiving the money.
Keep in mind that not registering the deposit correctly can lead to some pretty hefty consequences, like being unable to serve an eviction notice or even facing fines of up to three times the total deposit amount.