Most landlords know the headline rule: the Tenant Fees Act bans almost everything you might want to charge a tenant. What catches people out in 2026 is the detail underneath it. The Renters' Rights Act added a new prohibition on top of the old list, and the holding deposit rules are where honest mistakes turn into penalties.

This edition covers exactly what you can charge, what you can't, the new rent-in-advance rules, and why an innocent-looking payment can end up costing you.

Unless a payment is explicitly listed as a permitted payment in the Tenant Fees Act 2019, it is a prohibited payment. That's the whole framework. If it isn't on the permitted list, you can't charge it, however reasonable it feels. letsafeuk

Rent. The rent stated in the tenancy agreement, but with two 2026 limits covered below.

Tenancy deposit. Capped at five weeks' rent where annual rent is below £50,000, or six weeks' rent where it's £50,000 or more, and protected within 30 days as covered in Edition 16. letsafeuk

Holding deposit. Capped at one week's rent, and you can't take a second holding deposit from another prospective tenant for the same property while the first is outstanding. letsafeuk

Default fees. Only for late rent and lost keys. Late rent interest only applies after 14 days and is capped at 3% above the Bank of England base rate. Lost keys are actual cost only. letcompliance

Variation fee. Up to £50, and only where the tenant asks for the change. letcompliance

Utilities, council tax and communications. Actual cost only, and only where the tenancy agreement expressly says they're included.

This is the part that's genuinely new since 1 May.

Rent before signing is prohibited. Landlords can't collect rent before both parties have signed and the tenancy is legally binding, and rent taken early is now classed as a prohibited payment. Before May, rent counted as a permitted payment even if it arrived early. Now the timing matters. Tenants can't volunteer rent early either, and you can't accept or encourage it. landlordassociationlandlordassociation

One month maximum in advance. Once the agreement is signed, you can take at most one month's rent, or 28 days' rent if the rent period is shorter, before the tenancy starts. We covered this in Edition 16, but it's worth restating because the old workaround of asking for three or six months upfront is exactly what enforcement is now focused on. remedylegal

You can't get round it through third parties. The Act includes anti-avoidance measures to stop landlords and agents circumventing the rules through third parties or guarantors. landlordassociation

A transitional point. For tenancy agreements signed before 1 May 2026, guidance suggests you can continue collecting rent in advance as specified in the original contract for the remainder of that tenancy. It's worth confirming your specific situation before relying on that. openrent

Holding deposits are where most honest mistakes happen, because the rules run on a timer that starts the moment you take the money.

The 15-day deadline. A holding deposit has to be refunded or applied against rent within 15 days, unless a different deadline is agreed. If you're still referencing on day 16 with no written agreement to extend, you're already in breach. letcompliance

If you decide not to proceed. You need to repay it promptly. Guidance says the repayment is due within 7 days of deciding not to go ahead. openrent

When you can keep it. Only in narrow circumstances: the tenant gave false or misleading information, failed a Right to Rent check, withdrew, or didn't take reasonable steps to enter the agreement. If you intend to keep it, you must give the tenant written reasons or risk a fine. openrent

The practical trap is the gap between "we're still chasing references" and the deadline passing quietly. Diarise the 15 days the day you take the deposit.

The list of things landlords try to charge anyway is long, and the label doesn't change the law. Whether it's called rent, a deposit, an administration charge or something else makes no difference. rentingrights

Commonly prohibited: referencing and application fees, check-in and check-out fees, inventory fees, renewal or new-agreement fees, guarantor fees, and cleaning fees as a standalone charge. Requiring tenants to take out the landlord's nominated contents insurance, or to pay for the landlord's building insurance, is also prohibited. letsafeuk

Charging a prohibited payment is a civil offence with a £5,000 penalty for a first breach, and some guidance says it also blocks valid Section 8 notice service on certain grounds until the payment is returned. That's the same possession-gate pattern covered across this year's editions: deposit failures, licensing, the PRS Database. A tenant fee you shouldn't have taken can sit in the background until the day you need to serve notice. letsafeuk

Repeat breaches escalate. Repeat offences can result in banning orders under the Housing and Planning Act 2016, which connects directly to Edition 39. A subsequent breach within five years can also be treated as a criminal offence or attract a much higher civil penalty. Confirm the current figure with your local trading standards, as these amounts have been changing alongside the rest of the Act. letsafeuk

Enforcement focus in 2026 is on holding deposits held too long, default fees beyond actual loss, and landlords pressuring tenants to pay six months upfront. Those three are the ones to check yourself against first. letcompliance

✅ Take no rent until the agreement is signed by everyone. Early rent is now a prohibited payment, even if the tenant offers.

✅ Cap rent in advance at one month (28 days if the rent period is shorter). No exceptions, even for a tenant who volunteers more.

✅ Diarise 15 days from every holding deposit. Refund it, apply it, or agree a new deadline in writing before day 15.

✅ Never take a second holding deposit for the same property while one is outstanding.

✅ Keep default fees to late rent (after 14 days, 3% over base) and actual lost key costs. Nothing else.

✅ Write down your reasons if you keep any part of a holding deposit. Written reasons are your defence.

✅ Audit your standard documents. Old application forms and template agreements often still carry banned fees or insurance requirements.

✅ Check any agent you use. A prohibited payment taken by your agent can still land on you.

The Tenant Fees Act has been in force since 2019, which makes it easy to assume it's settled ground. The 2026 changes moved the goalposts on rent timing, and the holding deposit rules have always been stricter in practice than most landlords realise.

The landlords who avoid trouble here aren't the ones who memorise the list. They're the ones who've audited their paperwork once, put the 15-day holding deposit deadline into their diary system, and refuse to take any payment, from anyone, before the agreement is signed.

Track holding deposit dates against the 15-day deadline, rent in advance amounts, and every payment taken across your portfolio, so a prohibited payment never sits unnoticed in the background.

£19 one-time, instant access 👉 uklandlordproperty.gumroad.com/l/oahbhl

Also on Etsy 👉 tlbtemplates.etsy.com

Coming up next edition: Rent Repayment Orders, how tenants claim them, the 24-month rule and how landlords defend.

The Landlords Brief is published for UK landlords. Subscribe free at thelandlordsbrief.co.uk. This newsletter is for general information only and does not constitute legal or financial advice. Penalty figures and transitional rules may change, so confirm current amounts with your local trading standards.