Rent Admin Fee

landscaperico

Recently me and my flat mate decided we wanted to move house so we contacted Thornley Groves of Altrincham to move into a new house, they asked for one months rent of £575 + Deposit + and admin fee of £185, which I found ridiculous. (the admin fee was ridiculous)

We bartered the agent down from a £650 p/m rent to the £575, and when I refused to pay the £185 they sent me all sorts of forceful emails telling me I had to pay it if we wanted to move in, I asked for an itemised list of what the money was for and recived the following sentance

The admin/application fee covers the referencing process and all the aministration to set up the tenancy including this email and meeting you at the property. It is pretty standard practice amongst all the agents in the area and we are mid range with all of them.

Notice he even called it application and admin fee, because in previous correspondence he mentioned it as being both.

What I feel has happened is when we got the price down, the agent said the landlord would go for £600 but £575 was pushing it, I did my sums and as it is a 6 month contract £185 divided over 6 months makes the rent £605 (roughly speaking) so I think that he probably covers the admin fee with the £5 of the £605 and then they have a rent of £600 a month.

Is it just me or does this seem crazy!! I am absolutely seething about it, the estate agent was an agressive pushy and nasty individual is it legal what there doing I've been told that you cannot include workers time in admin fee.

Realistically they are telling me that they want me to pay for advertising, brilliant I wish I could do that!

What can I do!?

bobby-boy_2

The admin fee goes to the letting agent NOT the landlord so you cant round it up on to the rent.

Part of the fee will go to checking your references with an external company, this is not free, the cost of drawing up the lease, the agent will also be charging for time as you mentioned visits to the property, would you work for free?

What do you mean by starting fee?

I think you will be hard pushed to find any property without an admin fee for the lease, references etc

Jowo_2

It's the norm for tenants to pay admin fees to the agent which tends to cover activities such as drawing up the contract, taking up references/credit check and so forth.

It's also the norm to pay a month's rent and 4-6 weeks deposit upfront, too.

If you don't want to pay it, rent directly from a landlord.

Typically agencies have to pay salaries for staff, the premises, marketing, transport costs and so forth. They operate as businesses, not charities.

tbs624

Find a LL who self-manages . S/he will probably still want you to pay a credit check fee but they don't tend to slap these spurious charges on Ts , for doing very little. Just because other LAs do it as "standard practice" doesn't make it right.

landscaperico

thanks for your comment,

Fair point about the landlord and not rounding up.

Sorry starting fee is first months rent, I just meant it as its the first payment.

I did my research and it costs £10 to do the credit checks and I'm not suggesting he works for free but surely the landlord is paying the fees to pay for the agents time. Also apart from the checks and the emails to our works to again 'check' us out, and half a days work in moving us in, which surely the landlord is paying for, why if it is a standard charge will he not itemise the charge into what that £185 is for. he has resisted telling me apart from one sentance and I have asked 3 times for an itemised list of the charge.

I dont expect to pay no admin fee but £185 seems excessive and profiteering, which I've heard is illegal when charging admin fees, (correct me if I'm wrong I really dont know) in the place I live now I paid £70 admin fee and thats for a flat with a rent at £725 p/m. £185 seems mad.

landscaperico

I know but its hard when you find a property you really really like, is there any way I can contact the LL directly and cut the estate agent out? And finding out who he is through the net or council perhaps.

landscaperico

I know they are buisnesses thats why they charge the landlord for finding someone for the property, for me there is a difference between a buisness and a theif.

bobby-boy_2

Hi Landsacerico

Your £10 reference fee is way too low but that is not the point.
You do have a point that many people agree with that Letting Agent (LA) fees for admin tend to be high considering the work that seems to be involved.
You will get the landlords details when you sign the lease not a lot of use right now but you could perhaps deal with him direct come renewal time. You don't say if the LA is a full management service or just for finding tenants as this can make a difference.

Look on the bright side even with the increased Admin fee you are saving on the rent and will be better off over the year.

Enjoy your new home.

lellow_lorry

£185 admin fee is fairly reasonable....I paid £345 for myself and my partner(both have to checked) ...question is what was the starting fee?? If its the first months rent then that is fine.....but if its some other commision/admin fee ...they are taking the !!!!!! and I would have gone to another agent that was more reputable.

theartfullodger

Your £10 reference fee is way too low but that is not the point.

Nope , you can get references for £10 (I've seen £7 advertised...). Myself I usually get charged £20-£30 to get a reference done or a prospective tenant... Letting agents are a bizarre bunch...
- You need no qualification to be an LA
- You will not be regulated to be an LA
- You will not be Criminal Record checked to be an LA
- Anyone posting in MSE could set up as an LA within 2 hours...

Is there any wonder people get ripped off??

Cheers!

Lodger

landscaperico

Thanks Bobby Boy, the £70 we paid for this place is full management and the £185 is the landlord taking full care of us.

Unfortunately i decided against renting the property for the pure fact I was so outraged, at the fee, the lack of clarification as to what it was for and the estate agents attitude. That may change if he reconsciders!!

In my buisness and any buisnesses we deal with there is always full clarity I dont understand how they can get away with it by being so wishy washy.