Permitted Payment Caps — landlord obligations in England
When you charge any permitted payment (like late rent, key replacement, or variation fees), the law sets maximum amounts. Late rent interest is capped at 3% above the Bank of England base rate, applied from 14 days after the due date, and only if the tenancy agreement allows it. Other charges must be reasonable and, for key loss, supported by written evidence of costs. You cannot charge a duplicate fee where the agent has already charged.
The law that creates this obligation
Your obligations as a landlord
- Who this applies to: All landlords who charge any permitted payment.
- When it applies: When charging any permitted payment category, including late rent, key/security device loss, variation/assignment, early termination, or services.
- What you must do: Keep written evidence of costs where required (e.g., for key loss or services) and payment records showing the charge complies with the cap. For late rent, ensure the tenancy agreement permits it and the interest is calculated correctly.
What good evidence looks like
Your compliance file should contain
- Written record or document confirming this obligation has been met
- Date of compliance — email timestamp, signed receipt, or platform log
Upload written evidence of costs for key loss or services, and payment records for late rent interest or other charges, showing they are within legal caps.
Record this obligation in your LettingsLedger workspace
Upload evidence, set reminders, and build a timestamped compliance record — all in one place.
Consequences of non-compliance
Any charge above the cap is a prohibited payment. You must repay the excess within 28 days of a demand from the tenant, and trading standards can take enforcement action.
Further reading for landlords
LettingsLedger is a compliance evidence governance platform. It is not a legal services provider and does not provide legal advice. Content is derived from UK primary legislation at legislation.gov.uk and official GOV.UK sources. Reflects the position as at June 2026. A GovProtocol product by Pertheo Limited.