Friday, 11 September 2026. Finding a rental property is expensive enough before unexpected charges appear.
A prospective tenant may already be calculating the first month's rent and deposit when another request arrives: an administration fee, referencing charge, inventory payment or compulsory insurance product.
The fact that somebody calls a charge an “administration fee” does not make it lawful.
England's Tenant Fees Act restricts what landlords and letting agents can require tenants to pay, and the rules were updated alongside the 2026 rental reforms. The basic approach is deliberately restrictive: if a payment is not permitted by the legislation, a landlord or agent generally cannot require it simply because it has been written into their normal process.
Paying to apply for a property is not how the system is supposed to work
A landlord or agent cannot simply add charges for routine work involved in granting the tenancy.
That means tenants should be cautious if they are asked to pay separately for referencing, ordinary administration, an inventory service or setting up the tenancy.
Government guidance specifically explains that tenants cannot be required to enter into contracts for services such as an inventory service, deposit-replacement product or professional guarantor service, although a tenant may choose such a service in appropriate circumstances.
The distinction between choosing a service and being required to buy it is important.
An optional product does not become genuinely optional if refusing it means the landlord will not proceed with the tenancy.
What about holding deposits?
A holding deposit is different from an application fee.
It can be taken to reserve a property while the tenancy is being arranged, subject to the statutory rules, and is capped at one week's rent.
Tenants should understand what the payment is before transferring money.
A holding deposit is not simply additional rent and should not become a convenient label attached to an unexplained charge.
There are also rules governing what happens to it when the tenancy proceeds or does not proceed, which is why written communication around the payment is valuable.
Tenancy deposits have a different purpose again
The security deposit exists to protect against legitimate losses connected with the tenancy, subject to the statutory deposit rules.
It should not be confused with the holding deposit paid during the application stage.
The fact that both contain the word “deposit” can make the early stages of renting unnecessarily confusing, particularly for somebody renting in England for the first time.
Before paying, a tenant should understand whether the money is reserving the property, forming the security deposit, or paying rent.
If nobody can clearly explain what a requested payment is for, that is a reason to ask questions before sending it.
Can tenants be charged when they ask to change the tenancy?
There are limited circumstances where a payment is permitted.
Where the tenant requests a change to the tenancy agreement—for example, asking to add or remove somebody—a charge of up to £50 can be required for the work involved. A higher amount may be possible where the landlord or agent can demonstrate that the reasonable cost was actually higher.
That does not create a general £50 administration fee.
The charge relates to a tenant-requested change.
Similarly, there are specific provisions relating to replacement keys or security devices and late payment of rent. These are regulated rather than open-ended opportunities to impose whatever charge appears in an agreement.
The rules around rent have changed too
Since 1 May 2026, landlords and agents cannot ask for, encourage or accept rent before the tenancy agreement has been signed.
After signing, where the relevant rules apply, the landlord can generally ask for a maximum of one month's rent in advance before the tenancy begins for a monthly tenancy.
This matters particularly for tenants who previously encountered requests for several months of rent upfront.
The 2026 reforms changed that landscape substantially.
What if a tenant is asked for a prohibited fee?
The safest response is not necessarily to argue at the property viewing.
Keep the request.
If it arrived by email or message, preserve it. If the payment appears in a document, keep the document. Ask the landlord or agent to explain exactly what the charge covers.
Government guidance advises tenants who believe they have been asked for an unlawful payment that they can raise the issue with the landlord or agent and seek assistance from organizations such as Citizens Advice or Shelter. Local councils have enforcement powers.
The legislation also has teeth. Current government guidance states that a first breach can attract a financial penalty of up to £5,000, while certain repeat breaches can result in substantially higher penalties or prosecution.
For tenants, however, the most useful protection begins much earlier.
Before transferring money during a rental application, know what you are paying, why you are paying it and whether the landlord or agent is legally entitled to require it.
*DISCLAIMER- THIS PHOTO HAS BEEN TAKEN FROM PINTEREST (MS. SAN FRANCISCO REAL ESTATE)*