Disturbing trend in admin fees...

davidgmmafan

I haven't moved house for a good 3 or four years but I am about to and was somewhat stunned by the estate agent fees. I've been through an estate agent before prior to living at this address but can't recall a fee.

The going rate seems to be around £200. When I've had a look online it brings up threads here and elsewhere and the older the thread the less the fee. Clearly it is worrying that the fees keep increasing, especially since I don't see them having to work very hard for it.

Is the only way to avoid such a fee to go through a private landlord?

I am also really confused because in my area estate agents have furnished properties, with lower rents than landlords, the landlord have unfurnished higher rent but no admin fee.

I thought landlords would have lower rent since they don't have to pay the estate agent, and the properites are not furnished.

Also re credit check I have a couple of defaults will this prevent me from renting?

clutton_2

""re credit check I have a couple of defaults will this prevent me from renting?""

there is a thread active right now on this very subject

G_M

Is the only way to avoid such a fee to go through a private landlord?

You have 3 choices:
1) Go via a LL who does not use and agent
2) Compare agents and use the one with lowest fees
3) negotiate lower fees with an agent - if you can

I thought landlords would have lower rent since they don't have to pay the estate agent, and the properites are not furnished.

Seems logical, but it's a free market. Negotiate. Most LLs would prefer a tenant at a lower rent than no tenant at all.

adg1

In this area (South and West London) the admin fees have been well over £200 for a while now. At least 5 years as I paid Lords Lettings about £250 for me and the wife.

They have been rising but so have costs that the agents are hit with - commercial rent is higher than 5 years ago, petrol for their cars is higher, their cars cost more money, staff are more expensive, electricity and heating is more expensive etc.

You have to remember that all these are factored in to their fees they charge tenants.

You have 3 options as G_M says, either:

1. Avoid agents altogether and go privately (gumtree/local paper/news agents window advert)

2. Compare all agents and go with the one with the lowest fees, although you may end up very limited on property choice. You're perfect house could be with an agent that charges £50 more than the next one - would you want to save that £50 and go for a house you didn't like as much or cough up for a nicer life?

3. Pay the fees.

I'd be prepared to pay a fee and base your decision on the houses you see. If your perfect house is found privately, then great. If its with the most expensive agent in town (remember we're only talking a few tens of pounds when your looking to spend thousands in rent per year) then be prepared to pay the admin fee.

LittleMissAspie

Letting agents around here are starting to charge a checkout fee too, so you also have to pay to move out. It amounts to another couple of hundred in some cases.

davidgmmafan

"Letting agents around here are starting to charge a checkout fee too, so you also have to pay to move out. It amounts to another couple of hundred in some cases."

That's a new one on me but I have heard of similar fees say every six months for 'renewing' the tenancy. I had already decided, if I go through a letting agent, to haggle on the fees, why not we haggle for everything on holiday why not at home.

In particular I've picked up from here that a credit check costs around £30, given the large number of suitable houses in my area (a number of which appear to have been empty for several months) I figure its worth a shot.

""re credit check I have a couple of defaults will this prevent me from renting?""

Finally thought if were a landlord or letting agent I'd set the rent or the admin fee with some wiggle room to allow for negotiation, like people do when putting a house up for sale. Most people won't negotiate but I'd hate to lose a good tenant for say £50 on an admin fee or £20 a month on rent. I take the point that it works both ways and even £200 is not much if they have the perfect house for my needs.



"there is a thread active right now on this very subject "

I'm very much a newbie here, I'll have a bash at searching for that but I'm not very adept on here so far! lol

adg1

davidgmmafan wrote: »

In particular I've picked up from here that a credit check costs around £30, given the large number of suitable houses in my area (a number of which appear to have been empty for several months) I figure its worth a shot.

Remember that it is the landlord who is losing money with an empty property and not the agent. They may not budge on their fees but you can offer the landlord a lower rent for his house and see if he is willing to negotiate.

nervousmother

I think the agent will be loosing money, after all they will still be advertising it and spending time taking viewings.

Is it just me or do people think LA's should work for nothing? The costs of running a LA are very high from legal obligations to staff wages to advertising and transport...

Just read another thread with someone wanting to know if they are entitled to interest on their deposit. Try after tax £10 interest on the account that has £20 banking charges.

princeofpounds

Is it just me or do people think LA's should work for nothing? The costs of running a LA are very high from legal obligations to staff wages to advertising and transport...

Prices aren't set by costs otherwise no business would ever lose money.

sandiep

Estate agents/letting agents etc can't get the commission percentages that they used to, so they need to make charges in other areas in order to cover their costs. But basically, if you're using someone's time, then, one way or another, you should expect to pay for it.

clutton_2

i have increased my private admin fees since the start of deposit schemes... as my costs have gone up a lot... fees to protect the deposit, fees to hire an independent Inventory taker, time to create extra clauses in my AST as a result of ongoing rulings from the deposit schemes,

not to mention losses of deposit due to rubbish arbiters