What do you think about letting agent fees? MPs want to hear from you

As a private tenant on HLA, when my LL wanted to evict me (he wanted to sell, no arrears) it was difficult enough to find a LL who would accept HB tenants then come up with the one months - 6 weeks rent as deposit and a month's rent in advance. Letting agency fees only made it worse. I could get a loan from the council for some of the money required up front, but not the fees at all. Adding in removal costs and lack of LL who would rent to a tenant on HLA.., I had to go into Emergency Housing and am now in permanent housing. Surely all that process cost the Borough a lot of money?

If letting fees for a tenant were not allowed, it would affect Letting Agencies.., but surely it would make them rethink their policies and charge LL's who after all are a business normally - and renting out to make money one way or the other - why should a tenant be charged? I once had a letting agency present me with a possible bill for £500 in admin charges on a property costing £650 pm lol. I know referencing fees/credit checks cost 5% of that. No I did not take that forward, and wouldn't have done regardless of how good the property was it was a reasonable property and I would have considered it if fees had been more reasonable).

As regards renewal fees. Commonly around £100 minimum for an agency to print out the same tenancy agreement they gave you initially with a change of dates only. Less than five minutes work surely? How can that be justified? I remember my LL saying it was because he needed his solicitor to look at the TA again. Yet, the tenancy agreement was so cobbled together with clauses that could never be enforced, I'd be very surprised if the TA had ever been on a solicitors desk.

If wiping out the possibility of charges to tenants affects an agency detrimentally surely there is something wrong with their business model? A minister replied in the last debate on this subject saying LA's in Scotland closed en masse after tenant fees were stopped - which is not true - produce evidence to throw holes in that argument please. You could feel opinions reverse after he said that. After that point it was a balanced debate no longer.

LA's commonly take holding deposits, saying they are non refundable, even when they should be.

Do rents really need to go up by significant amounts to cover up front fees? Again evidence needed.

I think it would be a good idea to have no fees for tenants and limit the fees LL's can be charged. At the moment Agencies can charge anything for check in and check out fees, renewals, admin charges, credit checks, referencing etc. Tenants and LL's can vote with their feet but not always. Renting a property is already a minefield for tenants, who after all are just normal people with no legal training. Surely it would benefit everyone to simplify the fees agencies can charge? Look at areas with fewer properties than prospective tenants.., agency fees rise. Why? No financial basis for this.

I would definitely welcome the licencing of LL's and Letting Agencies. At least it would be slightly easier to monitor the bad ones and do something about them. And hopefully the cost/requirements would deter 'accidental' LL's who can be very difficult to deal with (and educate them).

OK Kevin Hollinrake and the UK Government just save yourself a lot of time and presumably money, get yourselves up to Scotland and adopt the much fairer and transparent system up here. No tenant fees (shouldered by the LL so therefore incorporated into rent, but a market is operating where the prospective tenant knows exactly how much he will be paying). Licensing for LL, oh yes £55 for 3 years + £11 per property, no problem for any responsible LL providing it sorts out the bad apples. Cost neutral to councils? A national registration system exists. Come on, swallow your pride and see if you can learn a better way.

What are your experiences of letting agent fees?

I have been lucky, the only time I've rented via an agent is was a small local company. They charged a single cheap referencing fee (around £80 if I remember correctly). I know others who have had to pay far more.

Which fees do you consider fair and which do you consider unfair?

For a fee to be fair I think it has to provide a direct benefit to the tenant and should actually reflect the cost of providing that benefit. Not exist as an income stream for the lettings agent. The standard fees letting agents charge don't seem to fit with this. They are often for the landlord's benefit (referencing, credit checks, check out inspections etc) and/or greatly out of proportion with the cost of the service involved (e.g. over £100 to renew a fixed tenancy when there are no contractual changes).

It has been suggested that if the ban is introduced, the fees will simply be transferred from tenant to landlord and then back to tenants in the form of higher rents – how do you feel about this?

This is fine. Tenants pay these fees anyway. If they were simply folded into the rent at least tenants would have a straight-forward single monthly cost to more easily budget for and it makes comparing properties easier (no lists of potential fees to pursue for the different agents). Landlords find it far easier to switch agents than a tenant. As such this should drive competition between agents to reduce fees leading to overall lower costs for tenants.

Tenant fees can vary significantly – do you take these differences into account when looking to rent a property?

I no longer rent, but if I did I would certainly take fees into account.

Would you welcome the licensing of agents and landlords?

Yes, though a lightweight scheme for private landlords. Something that was cheap to apply for, maybe involving a small computerised exam (as the driving theory test is currently run) that shows the landlord has a basic grounding in tenancy law. Powers to suspend or revoke these licenses could help cut down on slum landlords.

particular, he would like your views and experiences of the following to help inform the debate:
What are your experiences of letting agent fees? Ive had two one charged me £125 for an application fee, £100 for a credit check that was never carried out according to all my credit reports. They also said that if I was unsuccessful in my application I wouldn't be refunded I was desperate and went ahead so along with the deposit and months rent upfront cost me over £1000 . The second game was £100 application and check, a months rent up front and a refundable deposit protected
Which fees do you consider fair and which do you consider unfair? admin fees that are extortionate admin included producing the tenancy agreement and most of them are near enough the same and they use a template
It has been suggested that if the ban is introduced, the fees will simply be transferred from tenant to landlord and then back to tenants in the form of higher rents – how do you feel about this?yeaa but I also think rent should be fair, if it's already extortionate for e.g. a 1 bed bedsit for £500 a week! Is high enough!
Tenant fees can vary significantly – do you take these differences into account when looking to rent a property?byes
Would you welcome the licensing of agents and landlords?
if this includes looking at capping rent they charge but increasing within reason if necessary then yes and also monitoring the tenancy deposits and their protection
Your comments will be summarised and shared with MPs to use in the debate.

You will be able to watch the debate on Parliament TV and we will update this thread once the debate has taken place./[ QUOTE]

I wanted to move recently but I live in bristol so fees are 50% of £1000 rent for a 2bed property. On the top of all the other costs I just couldn't afford it. Then I got evicted from my property and had no choice. In 6 months times I'm going to have to pay £65 to resign the contract when it expires. No choice as the agents don't allow rolling contracts.