Why Do Letting Agents Charge Tenants An Admin Fee?
Written by The Landlord on 27 Apr 2010I’ve never understood this, so I’m hoping someone kind, gentle and sexy can shed some light onto the matter…
Most high-street letting agents charge both tenants and landlords fees, which actually makes no sense to me. I understand why agents charge landlords, but why the tenants? It’s like car dealerships charging someone a premium for buying a car. In fact, it’s like any consumer being charged to…errr…consume.
I know that the local agents around where I live charge tenants approximately £100. At least it was that last time I checked about a year ago. I’m not entirely sure if that’s a pretty standard rate across the country, or whether it drastically varies. Actually, I’m going to stop writing this post right now, and quickly throw the question out there on Twitter (quite a few Letting Agents follow me on Twitter)…
A few hours later…
Right, I’ve got a few responses, and here they are…
Ok, so it seems as though the prices do vary, and the premium is justified as “admin costs”, which I still don’t fully understand. What admin work is actually done for tenants to justify a £50 – £200 fee? Let’s not forget, the client is the Landlord, and NOT the tenant. So is it just me, or is it odd/unfair that a tenant has to pay a premium when Landlords are already paying through their noses for a service?
Renewal Fees
What’s more frustrating is that a lot of agents charge tenants the same admin fee again if a tenant decides to stay in a property longer than the fixed term in the tenancy agreement. The cost is commonly known as a “renewal fee”
So, for example, suppose I’m a tenant and a letting agent finds me a property, which I sign a one year contract for. If I decide to stay in the property for longer than a year, I have to pay the admin fee again. Seriously, WTF?!? What extra admin work actually has to be done? IT MAKES NO SENSE TO ME, especially when the Landlord also has to pay a renewal fee (but that’s an entirely different rant all together).
I just assume that a lot of agents don’t even know WHY they charge that admin fee, they just do it because all agents do it.
If I were a tenant…
Assuming I was adamant on using a letting agent to find a property to rent, I would do the following:
- Rates obviously vary from agent to agent, so I would get quotes from all local agents to see which one offers the most competitive rate
- Agents themselves have told me the rate is open to negotiation, so I would try and get the lowest rate possible
- If rates seem excessive, I would ask the agent what exactly I’m paying for. If the figures don’t stack up and I feel as though I’m being taken for a ride, I’d probably walk out based on principle.
- Find out exactly what the implications are regarding the extension of the tenancy agreement e.g. If I decide to stay in the property longer than the fixed term, am I liable to be charged another admin fee? Some agents don’t charge a renewal fee, some do, it’s best to find out. Moreover, if the agent says there is NO renewal fee, I’d get that in black and white. Remember, you’d be a fool to trust a fool.
I’d just like to say many thanks to those on Twitter that responded to my question. It’s a bit of a shitty situation actually; they were kind enough to respond, but I’ve kind of stabbed them in the back by saying it’s a bullshit fee. Sorry, guys.
Love and Peace.
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60 Comments - join the conversation...
Showing 11 - 60 comments (out of 60)
Ginster2010-04-29 16:16:35
I totally agree with Jools' statement 'Everyone has a right to make a margin on services but it has to be reasonable'.
These comments have really got me thinking and I do see your point too Landlord from the ethical sense you are trying to convey ;-)
I guess I have been looking at things from a shallow depth and I'm merely thinking of the time I've spent on the work relating to helping a Tenant acquire a property to rent.
This is all relatively new to me and thank heavens for your blog is all I can say for the time being!
Maybe the time has come for a bit of restructuring??!!
These comments have really got me thinking and I do see your point too Landlord from the ethical sense you are trying to convey ;-)
I guess I have been looking at things from a shallow depth and I'm merely thinking of the time I've spent on the work relating to helping a Tenant acquire a property to rent.
This is all relatively new to me and thank heavens for your blog is all I can say for the time being!
Maybe the time has come for a bit of restructuring??!!
11
GillsMan2010-04-30 14:43:45
Interesting topic. The agency I rent through (I'm a LL AND a Tenant) said their charge was £150 - but they negated to include the VAT so I ended up paying an admin fee of £187.50, which was ridiculous given the mess they made of moving us in.
Anyway, apparently (according to a friend who rented through them) they charge a renewal fee of £80. I won't pay it. Simple as. My contract is with the LL, not with the agency, so they can't force me to pay it. It's not mentioned in the contract either. If this happens, I'm quite happy to let the contract go periodic. In fact, I can't wait until I get to have this row with them. Roll on December!!
Anyway, apparently (according to a friend who rented through them) they charge a renewal fee of £80. I won't pay it. Simple as. My contract is with the LL, not with the agency, so they can't force me to pay it. It's not mentioned in the contract either. If this happens, I'm quite happy to let the contract go periodic. In fact, I can't wait until I get to have this row with them. Roll on December!!
12
Top Savings Plan2010-05-04 12:47:13
I guess I have been looking at things from a shallow depth and I'm merely thinking of the time I've spent on the work relating to helping a Tenant acquire a property to rent.
Seems like the same argument is used for both parties, so essentially both parties are paying for the exact same services, which is unfair.
Seems like the same argument is used for both parties, so essentially both parties are paying for the exact same services, which is unfair.
13
Barry2010-05-22 18:59:58
Ok - I'm going to labour this Tescos analogy.........!
Tescos charge, say, two quid for a cardboard box containing a microwave chicken stir fry. The cost of the chicken is probably around around 15p. The rest is packaging, advertising and profit.
- buy one of these, stick it in the microwave at home and 5 mins later sit down in front of the TV with your dinner
Tescos also sell half a whole chicken at 2 quid each. Enough meat to make 10 chicken stir frys
- but it takes alot more effort than a quick burst in the microwave before you can sit down in front of the TV and eat it.
So why buy a packaged chicken stir fry? If you want convenience, you will pay for it.
Alos - If ASDA offer a better chicken stir fry for the same money, or a similar product for 1.50, chances are Tescos would go out of business. It's a market and you have to offer value or lose customers.
And yes - i do work for a London lettings company!
Tescos charge, say, two quid for a cardboard box containing a microwave chicken stir fry. The cost of the chicken is probably around around 15p. The rest is packaging, advertising and profit.
- buy one of these, stick it in the microwave at home and 5 mins later sit down in front of the TV with your dinner
Tescos also sell half a whole chicken at 2 quid each. Enough meat to make 10 chicken stir frys
- but it takes alot more effort than a quick burst in the microwave before you can sit down in front of the TV and eat it.
So why buy a packaged chicken stir fry? If you want convenience, you will pay for it.
Alos - If ASDA offer a better chicken stir fry for the same money, or a similar product for 1.50, chances are Tescos would go out of business. It's a market and you have to offer value or lose customers.
And yes - i do work for a London lettings company!
14
Twattybollocks2010-05-22 20:21:18
What if I shop in Morrisons?
TB
TB
15
The Landlord2010-05-23 01:54:15
Hey Barry,
I think you missed the point and completely misunderstood the analogy. All you're doing is distinguishing between types of products. Ofcourse prices/quality will vary between products. But that has nothing to do with the issue.
The point is, Tescos don't charge people for buying their products, Tescos charge for the actual products!! Tenants are being charged to buy something off a shelf!
I think you missed the point and completely misunderstood the analogy. All you're doing is distinguishing between types of products. Ofcourse prices/quality will vary between products. But that has nothing to do with the issue.
The point is, Tescos don't charge people for buying their products, Tescos charge for the actual products!! Tenants are being charged to buy something off a shelf!
16
Ryan2010-06-08 12:16:13
Landlord,
The admin fee we charge is for all the checks on the tenant (calling previous landlord, credit checks, paperwork etc) it's £75 for us.
Landlord move in fee is different, it's for making sure the transition is smooth so council and utility companies are told, tenants are found, all the running round getting people to sign things, etc.
Hope this slightly sways you...
The admin fee we charge is for all the checks on the tenant (calling previous landlord, credit checks, paperwork etc) it's £75 for us.
Landlord move in fee is different, it's for making sure the transition is smooth so council and utility companies are told, tenants are found, all the running round getting people to sign things, etc.
Hope this slightly sways you...
17
Jim2010-06-09 12:26:59
The agencies charge extortionate fees because they have usually already taken a non-refundable deposit as a 'holding fee'. If the tenant wants to challenge admin fees at a later date they will have little ground to stand on unless they are willing to lose what they have already paid out.
The lesson is to negotiate admin fees before pay anything else out. Ive just been stung in this fashion. :(
The lesson is to negotiate admin fees before pay anything else out. Ive just been stung in this fashion. :(
18
steve2010-06-09 14:03:29
But Tescos do charge you a deposit for using their trolley
19
The Landlord2010-06-09 14:59:10
...which is fully returned when you return the trolley! Letting agents don't return the admin fee!
For the record, the Tescos in my area don't actually take a deposit for trolleys :)
For the record, the Tescos in my area don't actually take a deposit for trolleys :)
20
Jools2010-06-09 16:29:25
Don't mention Tesco to me - just had a stroppy manager give me grief in their shop because I complained that she could not organise enough manpower to open enough checkouts and I mentioned that instead of arguing with me why could she not get her arse behind a checkout and help her staff out!
Can we change the name to ASDA or NETTO?
Thanks in advance.
Jools
Can we change the name to ASDA or NETTO?
Thanks in advance.
Jools
21
daveW2010-06-12 12:09:27
These fees are a total joke!!!!!
in this day and age gumtree etc a deposit covers all these problems. Amin fee my arse - Money for Greedy legal Thugs.
in this day and age gumtree etc a deposit covers all these problems. Amin fee my arse - Money for Greedy legal Thugs.
22
Stephen N2010-06-15 13:01:51
Just enquired about a property for rent to be told that the estate agent charges a fee of 50% of the first months rent - plus VAT. Absolute rip-off! The process is the same whether the rent is 300 or 1500 per month - how do they get away with such ridiculous charges! Discovered property also being advertised by another agent. They charge a fixed £200 + VAT fee. Still think this is excessive - but a damn sight cheaper than the other one.
23
Steve2010-07-12 22:15:10
FYI jools if all you impatient customers woulds understand that at tesco we cannot just make a staff member appear out of nowhere to serve you at a checkout because you cant be arsed to wait, all managers have legal duties around the store to adhere to so serving shitty customers on a till isnt a priority if you dont like it then shop at netto....if it gets busy n there with all 6 tills they have then you will be queing longer
24
Jools2010-07-13 08:07:17
@Steve. FYI. What a load of bollocks! If a store manager who is on £75k+ a year can not manage her staffing levels correctly then they are incompetent. Tesco (as well as the other supermarkets) are there to provide the customer with a service.
That customer service extends to obeying the first and second laws of customer satisfaction.
1. The customer is always right.
2 When customer is wrong refer to rule 1.
Why should I be wrong to expect decent service and a civil attitude from a senior manager? Mind you, with your attitude that customers are shitty why should I expect any less from Tesco who's main priority seems to be pay the workers minimum wage and treat them like shit, provide fresh food with little shelf life and shirk their responsibilities to fairness and equality because they are too pussy and afraid of being sued for discrimination? Tesco's rules and regulations are not flexible enough to allow individual thinking.
Point of fact is that the manager or her deputy, who was there as well, could have got her/their fat arse/s behind the till to assist whilst awaiting the colleague call or whatever the f*** Tesco call it. Not rocket science is it in this day and age or are Tesco managers not trained on checkout? If it gets busy in there with all 6 till's I will be leaving my shopping trolley at the checkout and going elsewhere.
Jools
That customer service extends to obeying the first and second laws of customer satisfaction.
1. The customer is always right.
2 When customer is wrong refer to rule 1.
Why should I be wrong to expect decent service and a civil attitude from a senior manager? Mind you, with your attitude that customers are shitty why should I expect any less from Tesco who's main priority seems to be pay the workers minimum wage and treat them like shit, provide fresh food with little shelf life and shirk their responsibilities to fairness and equality because they are too pussy and afraid of being sued for discrimination? Tesco's rules and regulations are not flexible enough to allow individual thinking.
Point of fact is that the manager or her deputy, who was there as well, could have got her/their fat arse/s behind the till to assist whilst awaiting the colleague call or whatever the f*** Tesco call it. Not rocket science is it in this day and age or are Tesco managers not trained on checkout? If it gets busy in there with all 6 till's I will be leaving my shopping trolley at the checkout and going elsewhere.
Jools
25
Ginsterlam2010-07-13 09:13:18
Just out of interest, what would you consider is a fair rate for an Agent to charge a Landlord for renting out his/her property?
Regards,
Ginsterlam
Regards,
Ginsterlam
26
Jools2010-07-13 16:53:13
I reckon £70.00 tenant find fee followed by a (negotiable) monthly fee of ssay between 7 and 10% depending upon number of properties held with agent. (plus VAT id applicable).
Jools
Jools
27
Ginsterlam2010-07-14 08:26:28
Hi Jools,
Thanks for this but what if a Landlord only requires you to find a Tenant and aren't interested in fully managed?
£70 would be too low to cover finding the Tenant, doing the veiwings, paying for the credit checks and spending the time preparing, sending and chasing for the references and so on. I can understand charging this cost if the Landlord of the property then wants you to fully manage it. The monthly fee then in effect buffers the £70.00 finders fee.
Although I now understand the 'Landlord's' point of view with regards to charging the Tenant a premium for windowshopping per se which understandably is wrong, I'm just trying to get my head around what would constitute a fair charge to the Landlord to cover the work with regards to finding the Tenant to getting them checked in without having to charge the Tenant for anything.
Kind Regards,
Ginsterlam
Thanks for this but what if a Landlord only requires you to find a Tenant and aren't interested in fully managed?
£70 would be too low to cover finding the Tenant, doing the veiwings, paying for the credit checks and spending the time preparing, sending and chasing for the references and so on. I can understand charging this cost if the Landlord of the property then wants you to fully manage it. The monthly fee then in effect buffers the £70.00 finders fee.
Although I now understand the 'Landlord's' point of view with regards to charging the Tenant a premium for windowshopping per se which understandably is wrong, I'm just trying to get my head around what would constitute a fair charge to the Landlord to cover the work with regards to finding the Tenant to getting them checked in without having to charge the Tenant for anything.
Kind Regards,
Ginsterlam
28
Prad2010-07-19 18:38:37
Hi All,
I got into this webpage while looking for fee charged by estate agents for rental properties. I am shocked to hear that some agents charge like £150 for Admin fee + £100 for Reference fee + VAT on both. I am not sure if that is the market trend in London to charge Tenants that much of a fee.
Regards,
Prad
I got into this webpage while looking for fee charged by estate agents for rental properties. I am shocked to hear that some agents charge like £150 for Admin fee + £100 for Reference fee + VAT on both. I am not sure if that is the market trend in London to charge Tenants that much of a fee.
Regards,
Prad
29
Davew Benwell2010-07-22 11:43:41
Down in Southend-On-Sea the agents charge £250 per application which they state is non-refundable.
Firstly I disagree with the non-refundable option, what if you are on a very low income and need to rent a property. I have personally been caught out by a previous agent. Took my application and fee and then told me my income was not high enough to cover the level of rent of the property that I wanted to rent. “Fee Non-Refundable”
Therefore, I think it’s only fair that agents should be forced to refund application fees in all cases unless the applicant backs out.
If I was in this situation again and I found my self to be rejected by the agent by saying level of income was not enough, found credit search, bad reference, its then the agent who is REJECTING the tenant, if they then refused to refund the fees, I would request a break down of its charges, and if required take legal action to recover the fees.
Firstly I disagree with the non-refundable option, what if you are on a very low income and need to rent a property. I have personally been caught out by a previous agent. Took my application and fee and then told me my income was not high enough to cover the level of rent of the property that I wanted to rent. “Fee Non-Refundable”
Therefore, I think it’s only fair that agents should be forced to refund application fees in all cases unless the applicant backs out.
If I was in this situation again and I found my self to be rejected by the agent by saying level of income was not enough, found credit search, bad reference, its then the agent who is REJECTING the tenant, if they then refused to refund the fees, I would request a break down of its charges, and if required take legal action to recover the fees.
30
Dave2010-07-22 11:51:25
Also the Landlord get to choose who he/she accepts as his/her tenants, if the Landlord refused a tenants application, does this mean he tenant wont get his money back?
What stops an agent, having a property, allowing 10 Applications per house? Getting £2,500 in application fees, say to the other 9 people, sorry we have found a more suitable person to the house, and we arnt going to refund your money
What stops an agent, having a property, allowing 10 Applications per house? Getting £2,500 in application fees, say to the other 9 people, sorry we have found a more suitable person to the house, and we arnt going to refund your money
31
Property Genius2010-07-22 12:06:22
Because the 'application fee' also acts to secure your offer on the property so other potential tenants can't make a counter offer. If you had paid an application fee, the hypothetical letting agent wouldn't/shouldn't be taking other application fees but if they did (because there was such over whelming interest with 10 people simultaneously putting forward offers), then it would be under the proviso it would be refunded if your own offer was not successful.
In reality, application fees can be refunded in most cases except for the tenant pulling out for no good reason. I think Dave may have just come across a particularly scrupulous agent.
In reality, application fees can be refunded in most cases except for the tenant pulling out for no good reason. I think Dave may have just come across a particularly scrupulous agent.
32
Dave2010-07-22 12:30:45
One thing I plain to do is get every agent I go with to sign a written agreement, that unless I pull put of the application, then I would get a full refund.
33
IAC2010-08-06 18:31:20
All lettings agents seem to be in cahoots in Jesmond, Newcastle. All charge a fee of 50% of first month's rent + VAT. I've just been stung with a charge of around £480 for a £750 a month flat. And they pretty much refuse to negotiate.
34
Marie2010-08-19 14:59:56
Hi all,
Would like some advice on this;
Me and my partner are renting a property from an estate agent and have been for coming up to 18 months. I have no contact what so ever with my landlord as I've been told he lives abroad. Therefore my rent, house checks etc all goes through my Estate Agent (who is a small 3 man band)
The estate agent has informed us that the landlord will only renew the contract for 6 months at a time; which they charge us £60 to renew this. Is this right? I've been told by a few people that they shouldn't do this.
My rent is ALWAYS paid on time, not only that- we have mould in our bedroom that has been there for the whole time we have lived there and also the front room light doesnt work properly- both reported (the mould; we've been told to keep an eye on it and the light; they sent an electrician round to fix it but we are still facing the problems- I've pretty much given up on this!! We have no way to contact the landlord!! HELP ME PLEASE- Any advise would be greatly appreciated. Thank you
Would like some advice on this;
Me and my partner are renting a property from an estate agent and have been for coming up to 18 months. I have no contact what so ever with my landlord as I've been told he lives abroad. Therefore my rent, house checks etc all goes through my Estate Agent (who is a small 3 man band)
The estate agent has informed us that the landlord will only renew the contract for 6 months at a time; which they charge us £60 to renew this. Is this right? I've been told by a few people that they shouldn't do this.
My rent is ALWAYS paid on time, not only that- we have mould in our bedroom that has been there for the whole time we have lived there and also the front room light doesnt work properly- both reported (the mould; we've been told to keep an eye on it and the light; they sent an electrician round to fix it but we are still facing the problems- I've pretty much given up on this!! We have no way to contact the landlord!! HELP ME PLEASE- Any advise would be greatly appreciated. Thank you
35
Kate2010-09-10 20:20:16
Well I looked at a house today and had to pay £100 for the admin fee. Witch is to do a check on me. But I have not given them any details yet like my id bill statements and all that. Cuz I dont think I want to go a head with it. So I phoned up to ask if I can get my money back and He said no.. But why? Why can He keep my money when he has not even dun the check yet.
36
usha2010-10-05 19:44:05
Well!I hed same exp last year I was helping frind of my partner, I looked at a 1 bedroom flat and had to pay £400 for the 50% diposit fee. Witch is htey discrybe none refunable if I chenge my mind on the property.next day she fail me coz i been told she dosn't have any docs or money there for I cant go a head with it it was only over night So next day morning I visited to ask if I can get my money back and He said no.. Why He keep my money olso he has not even done anything? I really dont know...!
37
Paul2010-10-08 14:45:03
I stumbled across this site whilst trying to find some help so I hope someone can assist. My 22 year old daughter (who has a 4 yr old and is also at university full-time)just phoned me to say that she had received a letter from the letting agent of the house that she has rented for the past 6 months telling her that she must pay a £125 fee to cover the cost of extending the tenancy for a further 6 months! To say I am angry is an understatement! Can anyone point me in the direction of any case law or accepted fair practice on this? Thanks in advance, Paul
38
Dave2010-10-08 15:14:01
Hi Paul
The fees for renewal / extending the tenancy agreement should be mentioned within the agreement that your daughter had signed when taking the first agreement for 6 months.
If nothing is mentioned about the renewal fees then I would ask them why they are trying to charge you this fee for a simple renewal.
If however the fees are mentioned within the agreement, then you can challenge them under unfair contract terms act 1977 and ask them to provide you with a statement detailing how they have calculated the fees of £125.00
The problem you face, is if you don’t renew then they will serve you with a notice to get out of the house, if you challenge them then they could again kick you out no real protection here for your daughter.
If its not in your contract, I would say to them that you are not prepared to pay such high fees but you wish to continue staying in the property, they may serve you with notice, they would have to get a court order to get your daughter out of the house, at this stage you would appear at court and claim they are in breach of the contract by trying to charge you a fee for its renewal which is not stated within the contract.
The fees for renewal / extending the tenancy agreement should be mentioned within the agreement that your daughter had signed when taking the first agreement for 6 months.
If nothing is mentioned about the renewal fees then I would ask them why they are trying to charge you this fee for a simple renewal.
If however the fees are mentioned within the agreement, then you can challenge them under unfair contract terms act 1977 and ask them to provide you with a statement detailing how they have calculated the fees of £125.00
The problem you face, is if you don’t renew then they will serve you with a notice to get out of the house, if you challenge them then they could again kick you out no real protection here for your daughter.
If its not in your contract, I would say to them that you are not prepared to pay such high fees but you wish to continue staying in the property, they may serve you with notice, they would have to get a court order to get your daughter out of the house, at this stage you would appear at court and claim they are in breach of the contract by trying to charge you a fee for its renewal which is not stated within the contract.
39
Paul2010-10-08 15:27:08
Thanks for that Dave - it gets worse - she just phoned me again and it's £150 they are asking for! She phoned the landlord and the landlord has also had a similar demand for £150 so is also fuming! The landlord is a young woman who moved in with her boyfriend then decided to use a letting agency to let her house for her. She says that she wants to deal with my daughter directly now and sack the letting agency altogether - is that possible?
40
Lisa2010-10-14 14:17:33
I've just sold my house in cardiff and am going to rent for 6mths to a year until i can hopefully buy again.
Anyway, i found a small 2 bed terrace to rent and paid a 'good faith deposit' of £250. This shouldnt really be called a deposit as all it basically covers are the admin and credit checks. As i had not had a completion date for the sale of my house, i told the agent that i would likely be moving in in 2 to 3 weeks. They were fine with this. I then heard basically nothing at all so i popped in last week to make sure that my references etc were ok and they were. I also asked if i could move in in just over a week and they penciled me in for a date this week. The solicitors finally got back to me then with a later completion date which was still within the 4 week retention period stated in the application letter, I therefore let the agent know straight away that i would like to move in next week instead. They said it was ok but have charged me a further £60 for this which i have to pay when i sign the tenency along with the minimum months rent and deposit which comes to £1200 + £60. Therefore I will have paid a total of £310 in non-refundable fees! I dont mind paying something but being charged for every little thing...I feel this is a bit excessive as i didnt give a definate date and i have had to do all the work in communicating with them...they keep saying they cant get through on my mobile but they also have my home and work number and home and work e-mail.
To be honest, if it wasnt such hassel finding somewhere else in the space of a week i would have told them to stuff it!
By the way, I am also going to pay the rent all up front which as my parents are landlords (who dont charge anything by the way) I know is always a bonus, so why are they treating me this way, maybe they think I'm rich which i'm not. Have I shot myself in the foot by offering to pay upfront?
Anyway, i found a small 2 bed terrace to rent and paid a 'good faith deposit' of £250. This shouldnt really be called a deposit as all it basically covers are the admin and credit checks. As i had not had a completion date for the sale of my house, i told the agent that i would likely be moving in in 2 to 3 weeks. They were fine with this. I then heard basically nothing at all so i popped in last week to make sure that my references etc were ok and they were. I also asked if i could move in in just over a week and they penciled me in for a date this week. The solicitors finally got back to me then with a later completion date which was still within the 4 week retention period stated in the application letter, I therefore let the agent know straight away that i would like to move in next week instead. They said it was ok but have charged me a further £60 for this which i have to pay when i sign the tenency along with the minimum months rent and deposit which comes to £1200 + £60. Therefore I will have paid a total of £310 in non-refundable fees! I dont mind paying something but being charged for every little thing...I feel this is a bit excessive as i didnt give a definate date and i have had to do all the work in communicating with them...they keep saying they cant get through on my mobile but they also have my home and work number and home and work e-mail.
To be honest, if it wasnt such hassel finding somewhere else in the space of a week i would have told them to stuff it!
By the way, I am also going to pay the rent all up front which as my parents are landlords (who dont charge anything by the way) I know is always a bonus, so why are they treating me this way, maybe they think I'm rich which i'm not. Have I shot myself in the foot by offering to pay upfront?
41
Robert2011-01-26 22:48:12
When I moved in my flat 3 years ago, I paid a fee to the letting agent for my first 12 months contract. Since then, I renew my contract twice (2 x 12 months) and each time the letting agent asked for renewal fees. Each year, I’ve asked the agent to explain what services was provided to get charged (landlord managed the property) and since both times the agent never came back to me, I never paid these fees.
This year, the agent is threatening me that if I don't pay the last 2 renewal fees + the new one, I won't be able to sign a new contract.
The contract I’ve signed has only clauses about tenant's and Landlord's obligations for the next 12 months and therefore has no clauses about the agent's obligations (and renewal fees).
Do you have any suggestions how I can manage to sign another 12 months contract without paying these fees?
This year, the agent is threatening me that if I don't pay the last 2 renewal fees + the new one, I won't be able to sign a new contract.
The contract I’ve signed has only clauses about tenant's and Landlord's obligations for the next 12 months and therefore has no clauses about the agent's obligations (and renewal fees).
Do you have any suggestions how I can manage to sign another 12 months contract without paying these fees?
42
Helena Roberts2011-02-01 14:58:05
I've just moved over to the UK from Ireland and almost died of shock when i found out i would have to pay (up to 200 pound) to apply for a property.
I have worked for a letting agency in Ireland for the past 3 years and a tenant or prospective tenant is not charged for anything.. If they view a property and like it they can apply for it and pay a 500 euro security deposit (which becomes apart of their full deposit), this deposit is non refundable if the applicant changes there mind and choses not to move in. If more then 1 application is made, then the applicant who has not been accepted will receive their deposit back.
All reference checks and administration was all included, and the charge was passed onto the landlord in their renting fee, because they came to us to use our service.
I'm totally shocked at the whole set up over here..
I have worked for a letting agency in Ireland for the past 3 years and a tenant or prospective tenant is not charged for anything.. If they view a property and like it they can apply for it and pay a 500 euro security deposit (which becomes apart of their full deposit), this deposit is non refundable if the applicant changes there mind and choses not to move in. If more then 1 application is made, then the applicant who has not been accepted will receive their deposit back.
All reference checks and administration was all included, and the charge was passed onto the landlord in their renting fee, because they came to us to use our service.
I'm totally shocked at the whole set up over here..
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gav2011-02-06 19:24:08
I have a friend who paid £150 in admin fees or whatever they disguised them as, he then got refused for the property because they wouldn't accept his guarantor, but they rufused to give him his money back, surely this can't be right?? The agency where this happened is a popular occurance from wot i can gather. I have since been told that it could well be illegal what they have done, anyone got more info???
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fluff2011-02-15 21:50:40
my daugter has asked me if i can be her sponser. This means the letting agent will have to do a credit check on me,etc I will also be paying 6 weeks worth of rent, plus another months rent in advance, and to top it all they want a security fee - non refundable - and that they tell me will be £480.00. what a rip-off! when i expressed my horror and asked if it was negotible was told it was not. Can they get away with such charges? hiw can i tackle them?
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Claire2011-03-02 09:56:56
£100 charge to cover references - which can cost up to £40 for same day, insuring the deposit - the government brought in, and preparing and doing all the paperwork - or I guess my time is free??? Of course there needs to be an admin fee for the tenant... However I think I'm one of few agents that actually gives the entire deposit back the majority of the time!!! That's what you should be puzzling over. My brother just got charged for repairing a shower he informed the agent about and they did nothing when it broke for two weeks - why should he have to pay for the leak and repaint????? As well as professionally cleaning the carpets when a hoover was adequate, etc, etc...
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Mark2011-03-07 16:24:36
I'm a tenant currently looking around for flats to rent, and one letting agent in the local area is charging a £270 admin fee. Having looked at the comments on this page, it looks like an incredibly high fee!
It's interesting that another letting agent in the area charges 'only' £180 for their admin fee, and yet both of the agents I've mentioned have flats to let within the same building.
Anyway, I've emailed the first agent to find out exactly what the £270 fee pays for!
Is it worth volunteering to do a credit check myself and ask for a discount on the admin fee?
It's interesting that another letting agent in the area charges 'only' £180 for their admin fee, and yet both of the agents I've mentioned have flats to let within the same building.
Anyway, I've emailed the first agent to find out exactly what the £270 fee pays for!
Is it worth volunteering to do a credit check myself and ask for a discount on the admin fee?
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Sez2011-03-16 17:04:04
I work for a Sales & Lettings Company and initially, I couldn't understand why both tenants and landlords had to pay fees. After working here for over a year it has become clear!.... We have had a couple of Landlords which have signed up with us then "changed their minds" which is very frustrating after spending hours doing the advertising, phone calls to arrange the viewings, petrol expenses and time doing viewings, paying for a board and other forms of advertising. Then calling everyone who had originally enquired to let them know the property is no longer available. A lot of work is put in and why should we work for free???
As for tenants, we charge the following:
CREDIT CHECKS (Including Landlord References & Employer References)
£100 for one applicant
£60 for further applicants
We also take a holding deposit of £200 which gets deducted from the first months rent when the tenants move in.
MOVING IN
First Months Rent In Advance (£200 Holding Deposit deducted)
Security Deposit (Equivalent to Monthly Rent)
Admin Fee of £60.
Our admin fee covers the documents which we provide for the Tenancy Agreement, Section 21, Inventory, Bank Standing Order, Information for Tenants, we also inform Council Tax & send off Standing Orders for tenants. Oh and also covers our time, wages and stationary etc like any other company.
I think some people think that we should work for free!! Our company isn't greedy, it's quite a shame that other agents have built such a bad name but I do feel that our company works extremely hard for our fees and we like to look after both our tenants and landlords.
As for tenants, we charge the following:
CREDIT CHECKS (Including Landlord References & Employer References)
£100 for one applicant
£60 for further applicants
We also take a holding deposit of £200 which gets deducted from the first months rent when the tenants move in.
MOVING IN
First Months Rent In Advance (£200 Holding Deposit deducted)
Security Deposit (Equivalent to Monthly Rent)
Admin Fee of £60.
Our admin fee covers the documents which we provide for the Tenancy Agreement, Section 21, Inventory, Bank Standing Order, Information for Tenants, we also inform Council Tax & send off Standing Orders for tenants. Oh and also covers our time, wages and stationary etc like any other company.
I think some people think that we should work for free!! Our company isn't greedy, it's quite a shame that other agents have built such a bad name but I do feel that our company works extremely hard for our fees and we like to look after both our tenants and landlords.
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colin2011-03-22 02:01:13
I have just been charged £438 admin fee as a tenant by a tynemouth letting agent. I didn't really register the amount as it was done over the phone and wasn't clear.
I have emailed asking for half of this back as it is excessive ( half a months rent plus VAT), especially as the flat, advertised as available march, won't be available till Aprl.
What can I do to get some of this fee back?
I have emailed asking for half of this back as it is excessive ( half a months rent plus VAT), especially as the flat, advertised as available march, won't be available till Aprl.
What can I do to get some of this fee back?
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Murray2011-03-22 11:39:55
I responded to an advert on Gumtree and received an email from the Agency telling me that the property was still available but I would need to pay a fee of £59 to register with them in order to be able to view a flat. Surely it's their job to get prospective tenants to look at places and collect a fee from the landlord?! I could give them the money and not get a place to live at the end of it. Bullshit.
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joe public2011-07-25 20:29:27
As for tenants, we charge the following:
> CREDIT CHECKS (Including Landlord References & Employer References) £100 for one applicant £60 for further applicants We also take a holding deposit of £200 which gets deducted from the first months rent when the tenants move in.
So you're saying it costs £100 to make a phone call and find out what sort of tenant I was? Employer references I provided myself so what am I paying for there? A police check also costs less than £20 but you don't even do that.
> MOVING IN First Months Rent In Advance (£200 Holding Deposit deducted) Security Deposit (Equivalent to Monthly Rent) Admin Fee of £60.
Again, what's the service provided here? Signing a few forms? Showing me round a house? Is the landlord not paying you enough for the service you're providing him? It's not like I didn't do my searches myself and find the places I wanted so what am I paying for?
> CREDIT CHECKS (Including Landlord References & Employer References) £100 for one applicant £60 for further applicants We also take a holding deposit of £200 which gets deducted from the first months rent when the tenants move in.
So you're saying it costs £100 to make a phone call and find out what sort of tenant I was? Employer references I provided myself so what am I paying for there? A police check also costs less than £20 but you don't even do that.
> MOVING IN First Months Rent In Advance (£200 Holding Deposit deducted) Security Deposit (Equivalent to Monthly Rent) Admin Fee of £60.
Again, what's the service provided here? Signing a few forms? Showing me round a house? Is the landlord not paying you enough for the service you're providing him? It's not like I didn't do my searches myself and find the places I wanted so what am I paying for?
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Sez2011-07-26 21:29:20
Joe Public, All Estate Agents charge different amounts. Ours is a small family run business and we are not greedy like many others!!
Just to clarify the 60 pound admin fee which we charge tenants we do the following:
Walk around each room in the property recording any existing marks or damage. We take meter readings for Gas, Electricity, Water and record these on the Inventory to try and make things easier for the tenants. We set up a bank standing order and send this off to the tenants bank to ensure they don't have to worry about setting up the rent with their banks. We contact the Council tax and register new tenants with them to ensure this saves tenants having to do that. We also liase with the landlords and tenants making phone calls and negotiating if a tenant requests bits of furniture to be left or to negotiate the rent. WE COVER OUR COSTS. As I say, we are not greedy and a lot of people seem to think Agents do nothing and get paid a lot. I assure you this is not the case with our company. Its very frustrating when people ask why we charge tenants. Would you work for free???
As for the Landlords fees, that covers totally different costs. For example, we carry out routine inspections to ensure tenants haven't damaged the property, we receive and keep a record of the rental payments and in turn transfer the funds to the landlord. We record any activity whatsoever on a landlords property and arrange for repairs to be done. We charge tenants for hat service we do for tenants and we charge landlords for the service we charge for landlords.
As for you saying 100 calling an employer is too expensive, I have stated that a credit check is undergone and current landlord and employer references WE DO, NOT the applicant as it is for the Agent to ensure that the information you provide is correct.
To Murray, I think it is absurd that an agent is charging you 59 pounds before you even view?! I would advise to avoid this agent as if thats what they charge just to show you around a property, their fees must be ridiculous! You are completely right, the agents charge the landlord a tenant finders fee which should cover costs of staffs time to deal with enquiries, book appointments to view, cover the cost of the agents petrol on viewings and give feedback to landlords.
To Colin, are you sure that amount was definately the admin fee and not the first months rent included? Did the Agent not provide you with a breakdown of the fees? I would ask them for a breakdown and query why it was advertised a month earlier than it was available and if it was a manual error then you should be able to fight your case and get some fees back as you could say you were mislead. If that was our agent, we would refund the fees if we had put the date available incorrect on the advertisement as this would not be your fault, it would be ours.
Hope this helps guys!
Just to clarify the 60 pound admin fee which we charge tenants we do the following:
Walk around each room in the property recording any existing marks or damage. We take meter readings for Gas, Electricity, Water and record these on the Inventory to try and make things easier for the tenants. We set up a bank standing order and send this off to the tenants bank to ensure they don't have to worry about setting up the rent with their banks. We contact the Council tax and register new tenants with them to ensure this saves tenants having to do that. We also liase with the landlords and tenants making phone calls and negotiating if a tenant requests bits of furniture to be left or to negotiate the rent. WE COVER OUR COSTS. As I say, we are not greedy and a lot of people seem to think Agents do nothing and get paid a lot. I assure you this is not the case with our company. Its very frustrating when people ask why we charge tenants. Would you work for free???
As for the Landlords fees, that covers totally different costs. For example, we carry out routine inspections to ensure tenants haven't damaged the property, we receive and keep a record of the rental payments and in turn transfer the funds to the landlord. We record any activity whatsoever on a landlords property and arrange for repairs to be done. We charge tenants for hat service we do for tenants and we charge landlords for the service we charge for landlords.
As for you saying 100 calling an employer is too expensive, I have stated that a credit check is undergone and current landlord and employer references WE DO, NOT the applicant as it is for the Agent to ensure that the information you provide is correct.
To Murray, I think it is absurd that an agent is charging you 59 pounds before you even view?! I would advise to avoid this agent as if thats what they charge just to show you around a property, their fees must be ridiculous! You are completely right, the agents charge the landlord a tenant finders fee which should cover costs of staffs time to deal with enquiries, book appointments to view, cover the cost of the agents petrol on viewings and give feedback to landlords.
To Colin, are you sure that amount was definately the admin fee and not the first months rent included? Did the Agent not provide you with a breakdown of the fees? I would ask them for a breakdown and query why it was advertised a month earlier than it was available and if it was a manual error then you should be able to fight your case and get some fees back as you could say you were mislead. If that was our agent, we would refund the fees if we had put the date available incorrect on the advertisement as this would not be your fault, it would be ours.
Hope this helps guys!
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emma2011-08-22 22:01:51
I'm a student about to rent a property in peckham with some others, i just checked an email and apparently we are to pay £930 between us to the agent. This is nothing to do with our deposits or months rent in advance, which were listed seperately, is this... normal? is there anything i can do about this? my housemates have already handed over money to the estate agents but haven't specified what the money is towards.
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Hen OKUPIE Stainton2011-08-24 10:25:04
http://www.okupie.com are a small lettings agency based in Folkestone, Kent. Were open between 6pm and 11pm - out of office hours so that working people can view properties without taking days off!
We also do not charge anything more than £20 per tenant to move in to a property (as the credit check, tenancy agreement creation and reference taking is a maximum of 15 minutes work) and for a limited period only charge £99 to Landlords for a tenant find package which includes credit checking, viewings and all the other bits they get from a traditional agency. We dont believe the way things are done traditionally are fair on either the tenant or the landlord, so were changing the way things are done....due to launch officially in September 2011, we hope the other agencies follow our lead... Solving your problems when renting in Kent, Okupie.com!
We also do not charge anything more than £20 per tenant to move in to a property (as the credit check, tenancy agreement creation and reference taking is a maximum of 15 minutes work) and for a limited period only charge £99 to Landlords for a tenant find package which includes credit checking, viewings and all the other bits they get from a traditional agency. We dont believe the way things are done traditionally are fair on either the tenant or the landlord, so were changing the way things are done....due to launch officially in September 2011, we hope the other agencies follow our lead... Solving your problems when renting in Kent, Okupie.com!
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Hen OKUPIE Stainton2011-08-24 10:28:17
oh, and okupie dont charge tenants and renewal fee to continue renting the same property...thats just loooodicrous!
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james2011-10-14 19:11:30
I have just been sent the application form from whitegates/Homelet.I will list the charges.
1, Application Fee £195
2, Legal Fee £ 50
3, One Months rent £375
4, Bond £375
Total cost £995
They now insist that ALL tenants have Building and contents insurance.
They also ask for Proof of address,bank statement or utility bill, Pay slips and P60 to prove that you are working.
They take future rent payments 5 days before the rent is due via standing order.
At the end of the aggrement YOU PAY AGAIN to renew.
Do i think all this is fair NO No No
1, Application Fee £195
2, Legal Fee £ 50
3, One Months rent £375
4, Bond £375
Total cost £995
They now insist that ALL tenants have Building and contents insurance.
They also ask for Proof of address,bank statement or utility bill, Pay slips and P60 to prove that you are working.
They take future rent payments 5 days before the rent is due via standing order.
At the end of the aggrement YOU PAY AGAIN to renew.
Do i think all this is fair NO No No
56
Mitch2011-10-24 15:29:45
I think it is fair providing that the agent has (and this is our standard practice) informed you before the viewing ie on the phone call when booked AND that they should supply you with the breakdown at the property before you pay any money over.
We will not take a property off of the market unless a tenant has paid their holding fee (£250) - note NOT deposit, these are two very different things - And they need to have read and signed the tenant info sheet detailing the costs on one side and the procedure on the other.
We benefit from this two ways - 1. Less fall throughs when people either refuse to pay our fee (£150 inc VAT pp) and less fall throughs because it explains what they costs/procedures are. 2. Offering this info as many times as possible means applicants are more prepared when viewing and therefore prepared to sign the info sheet and take the property off of the market on the day.
Re the fee itself, it needs to cover a lot more than people appreciate. I would suggest that on a fee of £150 inc VAT, the margin for income is probably £30-35 per person. Not unreasonable.
I suppose the best thing as a tenant is to read everything before signing and if you haven't signed for it, simply demand not to pay it.
We will not take a property off of the market unless a tenant has paid their holding fee (£250) - note NOT deposit, these are two very different things - And they need to have read and signed the tenant info sheet detailing the costs on one side and the procedure on the other.
We benefit from this two ways - 1. Less fall throughs when people either refuse to pay our fee (£150 inc VAT pp) and less fall throughs because it explains what they costs/procedures are. 2. Offering this info as many times as possible means applicants are more prepared when viewing and therefore prepared to sign the info sheet and take the property off of the market on the day.
Re the fee itself, it needs to cover a lot more than people appreciate. I would suggest that on a fee of £150 inc VAT, the margin for income is probably £30-35 per person. Not unreasonable.
I suppose the best thing as a tenant is to read everything before signing and if you haven't signed for it, simply demand not to pay it.
57
Buks2011-11-15 20:07:47
The whole concept of letting agents charging potential renters an admin fee is crazy!!! When you use a recruitment agency to apply for a job, they charge the client, who is the recruiting company, not the candidate!!!! Recruitment agencies also get references on behalf of their clients, all of which is factored into their service cost to their client. My point is that letting agencies should not be charging renters a penny and any cost incurred for getting references should be included in their cost to landlords not tenants!!! I recently went to one agency, Moving Inn, in Streatham, who wanted to charge £300 in admin fees!!! If they must charge a fee to tenants, which in my opinion they shouldn't, then this needs to be a standard fee across all agencies, with slight differences only due to location. How can one agency charge £100 whilst another charges £300???? Who regulates these agencies??? They can't possibly just be allowed to charge what they like!!! they are all nothing but thieifs
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CATHYJ2011-11-24 11:14:45
I have just viewed a property with Reeds/Rains in Widnes Cheshire referencing for me and my husband £260. However I rang the day after and we wouldnt pass a credit check due to mortgage arrears, so they then said you need guarantors £100 for each guarantor they then concluded by saying our rent etc would be deducted from our main guarantors bank account and that arrangement would stay like that for the whole term of the tenancy, feel this is wrong because the tenancy agreement is with us NOT OUR GUARANTOR I think this is illegal if not illegal then ethically wrong
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Emily R2011-12-16 16:46:36
Hi all,
Myself and my fiancé are looking for our first place (after living with my mum for some time as it is a much cheaper option) and we are appauled to see such ridiculously high "admin fees"! Does it really cost £250 just to push a few buttons? No, not really. (And that is the cheapest we've seen admin fees go in Northampton!)
The most expensive we've seen (Not naming names, but is an estate agent in Northampton whose corporate colour is purple and their name is similar to that of a major organ...) is £300 "checking in fee" (basically just registering), £150 for the first reference, £55 each for three more references, £200 pounds for a credit check EACH and another £300 "checking out fee" - before we've laid down a desposit! £1370!!
Now, I have NO quips whatsoever with paying a deposit, as it is a security agreement between landlord and tenant. But why should I pay between £250 - £1370 when that has nothing to do with the agreement between the landlord and the tenant?
Unfortunately, we're struggling to find private landlords in our area, and although we can move to nearby towns (i.e Wellingborough or Kettering) we both have stable jobs in the public sector within Northampton, so fully relocating is not an option.
However, if anybody knows of any private landlords in Northampton or surrounding areas please do let us know (cheeky little wanted ad I though I'd stick in there, haha).
Anywhos, just wanted somewhere to vent my anger on the situation. Ta very much!
Myself and my fiancé are looking for our first place (after living with my mum for some time as it is a much cheaper option) and we are appauled to see such ridiculously high "admin fees"! Does it really cost £250 just to push a few buttons? No, not really. (And that is the cheapest we've seen admin fees go in Northampton!)
The most expensive we've seen (Not naming names, but is an estate agent in Northampton whose corporate colour is purple and their name is similar to that of a major organ...) is £300 "checking in fee" (basically just registering), £150 for the first reference, £55 each for three more references, £200 pounds for a credit check EACH and another £300 "checking out fee" - before we've laid down a desposit! £1370!!
Now, I have NO quips whatsoever with paying a deposit, as it is a security agreement between landlord and tenant. But why should I pay between £250 - £1370 when that has nothing to do with the agreement between the landlord and the tenant?
Unfortunately, we're struggling to find private landlords in our area, and although we can move to nearby towns (i.e Wellingborough or Kettering) we both have stable jobs in the public sector within Northampton, so fully relocating is not an option.
However, if anybody knows of any private landlords in Northampton or surrounding areas please do let us know (cheeky little wanted ad I though I'd stick in there, haha).
Anywhos, just wanted somewhere to vent my anger on the situation. Ta very much!
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