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Agency fees (I am renting a flat)

Hi

Does anyone know much about estate agency fees.

We went to view a 2 bed flat today. When we asked the agent about any fees, she was very vague. We told her our requirements: family of 4, 2 adults, 2 kids.

She mentioned a figure of £87+VAT, but said she needed to check in the office.

She rung me back now, saying that it will be £270+VAT!!!!:eek::eek::eek: Apparently it is £60 for tennacy agreement signing, £90 for tenancy, and £60 per adult, hence £270+VAT.

Do you think they are having me on?

Our flat was flooded, so we need to find something asap. Could it be that they are taking advantage here?

Are there any official rules/ guidelines on the agents fees re rentals?

Thank you kindly.

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    No rules I'm afraid. It seems a lot but agents often charge a lot!

    £60 per adult (for credit vetting presumably?). As a LL I get this done for between £15 and £30 depending how indepth a service I use. Agents charge more because they add their overheads on top.

    £60 for tenancy Agreement? Again fairly standard though a bit of a rip-off as they'll be charging the LL for this too!

    £90 for tenancy? No idea what this is as they've already charged for the Agreement. Just another way to make money!

    Try another agency, or deal direct with a LL (local papers).
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Tomato wrote: »
    Are there any official rules/ guidelines on the agents fees re rentals?

    as above, its called market forces and you are free to find another cheapoer agent if you don't like what they charge
    Tomato wrote: »
    Our flat was flooded, so we need to find something asap.

    confused, were you renting this flat and it is now uninhabitable?

    if so why is your existing Landlord not paying for you to move to alternative accommodation, alfter all if you still have a valid tenancy agreement with your existing LL then they have to house you by law and that is why they would have been wise to have LL insurance covering the costs of rehousing their tenant

    if you owned the flooded flat, then presumably you did not have insurance cover for alternative accomoodation?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 18 March 2010 at 6:53PM
    00ec25 wrote: »

    confused, were you renting this flat and it is now uninhabitable?

    if so why is your existing Landlord not paying for you to move to alternative accommodation, after all if you still have a valid tenancy agreement with your existing LL then they have to house you by law

    The underlined part is, of course, key. If the flat is uninhabitable then the tenancy may be 'frustrated', and hence ends.

    See National Carriers Ltd. v. Panalpina (Northern) Ltd. [1981] AC 875. The House of Lords considered that a lease can be frustrated. If the subject matter (e.g. house/flat) ceases to exist, continuation of the letting is inconceivable.
  • Tomato
    Tomato Posts: 115 Forumite
    Part of the Furniture Combo Breaker
    edited 18 March 2010 at 6:28PM
    00ec25 wrote: »
    a

    confused, were you renting this flat and it is now uninhabitable?

    I own the flooded property. The insurance company put us up in a hotel for 7 nights.

    Our flat is uninhabitable, so we have to rent something until it is fixed and good to move back in.

    ETA: the insurance sorted the hotel for 7 nights. I don't know what happens next :(
  • chodges84
    chodges84 Posts: 166 Forumite
    Those fees sound about right.

    Lettings Agents always rip people off when you are letting a flat. Don't forget that you can negotiate on rent. Put in a low ish offer, citing the extortinate fees as a reason why you expect a discount.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Tomato wrote: »
    I own the flooded property. The insurance company put us up in a hotel for 7 nights.

    Our flat is uninhabitable, so we have to rent something until it is fixed and good to move back in.

    ETA: the insurance sorted the hotel for 7 nights. I don't know what happens next :(

    Get out your policy document and read the exact T&Cs for when your property becomes uninhabitable.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Tomato wrote: »
    Our flat is uninhabitable, so we have to rent something until it is fixed and good to move back in.
    commiserations, any idea how long the works will take?
    I trust you appreciate that a "usual" rental agreement will have a fixed period of 6 months, meaning you are committed to paying rent for 6 months and getting out of that early, whilst possible, must be negotiated with the LL and may end up costing £

    of course it it possible to get short lets <6 months but you will need to ask for this upfront, as most agents will be working on 6 months as the expected start point
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    G_M wrote: »
    The underlined part is, of course, key. If the flat is uninhabitable then the tenancy may be 'frustrated', and hence ends.

    See National Carriers Ltd. v. Panalpina (Northern) Ltd. [1981] AC 875. The House of Lords considered that a lease can be frustrated. If the subject matter (e.g. house/flat) ceases to exist, continuation of the letting is inconceivable.

    so am I being ripped off by my LL insurance policy which covers me for tenant temporary rehousing?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    No, you are sensibly paying a small amount of extra premium to include tenant temporary rehousing.
    Note I said 'uninhabitable' (definition?) and 'may be frustrated'. Your policy is a sensible extra precaution.
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