Ban Unfair letting charges from LA?

PasturesNew

BadgerFace wrote: »

Not all LA's are that bad. Up here in Scotland, many LA's around here don't charge a fee at all to the tenant and those that do are around £25 for a credit check...

London sounds terrible!

It's not just London, it's everywhere ... except where you are, of course.

PROFESSIONAL_LANDLORD

dizziblonde wrote: »

My old LA would never allow a place to go periodic - I stayed in my old flat four and a half years and was never allowed to go onto a rolling tenancy - had to pay out renewal fees (which during the time I was there increased steadily from £45 for the flat, to £75 a person - so £150) and they charged the LL for this as well. I paid up because, like many - I wasn't in the position to be able to find the initial costs to move elsewhere, and I believed this was the norm. Plus the LL was bang-on in terms of repairing stuff and caring about the state the property was in and doing the best by his tenants - which was why I stayed for so long.

Part of the problem is there are many reluctantant LL's who are 'led by the nose' by LA's, who leave everything to the agent. Many of these LL's are unaware of rolling tenancies, they should know but they don't. Some tenants will walk rather than being fleeced by greedy LA's. Some LL's will be kept in the dark.

BLT_2

PasturesNew wrote: »

It's not just London, it's everywhere ... except where you are, of course.

Surely its just a case of picking your letting agent with care and choosing one whose fees are not usurious.

When I started renting the Letting Agency fees were around 100 pounds, for this I got escorted around a number of properties, had the credit check carried out, a contract drawn up etc etc. Balance this against a 60 call out charge some 'scummy' plumbers charge just for turning up and telling you that you have a leaky washer.

There is good and bad everywhere, as with everything it is merely a choice of what to opt for.

On another point, I would argue that the letting agency fees of 10-12.5% does represent a good return for the LA, the only time I have heard from mine is when they are trying to sell me something , all my dealing are direct with the landlord

tbs624

BadgerFace wrote: »

Not all LA's are that bad. Up here in Scotland, many LA's around here don't charge a fee at all to the tenant and those that do are around £25 for a credit check...

You're being kind to Scottish LAs - the law is different, so the lower /lack of fees up there are not simply a demonstration of Scottish LAs generosity of spirit towards their Ts

The Housing (Scotland)Act 1988 deals specifically with some of the costs that LAs south of the border like to push onto their Ts:

s30 (1) It shall be the duty of the landlord under an assured tenancy (of whatever duration)—

(a) to draw up a document stating (whether expressly or by reference) the terms of the tenancy;
(b) to ensure that it is so drawn up and executed that it is probative or holograph of the parties; and
(c) to give a copy of it to the tenant.

and:

s30 (3)A tenant shall not be required to make payment in respect of anything done under subsection (1) above. (my highlighting)

The fact that Scotland also has the option of making a contract subject to tacit relocation means that there is no justification for LA's contract renewal fees.

We've said many times on here that those Ts who find the current "admin fees" set up outrageous should campaign for change/regulation via their MPs and the Housing Minister.

Do it now whilst they are desperate for your vote - http://www.writetothem.com/

tbs624

BLT wrote: »

When I started renting the Letting Agency fees were around 100 pounds, for this I got escorted around a number of properties, had the credit check carried out, a contract drawn up etc etc. Balance this against a 60 call out charge some 'scummy' plumbers charge just for turning up and telling you that you have a leaky washer.

If you call out a plumber, it's for dealing with an item that you own, or for which you are responsible.The T does not own the property, nor should s/he be responsible for the standard costs of running a letting business. The LL can set these costs, if charged to him/her, down on their tax return. If you were buying a property an EA would "escort you around a number of properties" FOC to you, with the costs of their time included in the fee paid by the vendor. A mid-range credit check can be had for 20-30 quid

BLT wrote: »

There is good and bad everywhere, as with everything it is merely a choice of what to opt for.

Others have already made the point that in many areas the LAs effectively operate a cartel on admin fees and there is very little to choose between them.

BLT wrote: »

On another point, I would argue that the letting agency fees of 10-12.5% does represent a good return for the LA, the only time I have heard from mine is when they are trying to sell me something , all my dealing are direct with the landlord

Precisely, so why should Ts have to put up with being charged for something for which their LL is already paying?

franklee

clutton wrote: »

""OTOH you do know landlords who don't get consent for the sake of cheaper mortgage premiums"

this is beneath you Franklee - you normally argue very cogently...

OTOH i have visited someone in prison accused of murder... doesn't make me a murderer...

Eh? It's the fact that you side step the question gives me the impression you don't check for consent to let.

That you know other landlords who deliberately don't get consent to save on mortgage costs just shows it's accepted in some landlord circles, to scam the banks regardless of the effect on the tenant.

This is where it can end up, with a tenant in limbo.
http://forums.moneysavingexpert.com/showthread.html?t=2416955

Given you made this point earlier:

clutton wrote: »

Tenants who go to letting agents have the right to expect that agents will conduct certain checks on the landlord, that the LL is complying with the law, can produce documentary evidence to prove so.... If tenants go directly to landlords it is a bit more difficult / possibly confrontational for a tenant to ask these questions directly face to face....

It led me to ask did you as agent check for consent to let, which is one of the questions it's a bit more difficult / possibly confrontational for a tenant to ask! I note there is no answer.

I guess that leaves the tenant paying for an incomplete set of checks.

BLT_2

tbs624 wrote: »

If you call out a plumber, it's for dealing with an item that you own, or for which you are responsible.The T does not own the property, nor should s/he be responsible for the standard costs of running a letting business. The LL can set these costs, if charged to him/her, down on their tax return. If you were buying a property an EA would "escort you around a number of properties" FOC to you, with the costs of their time included in the fee paid by the vendor. A mid-range credit check can be had for 20-30 quid

I understand what you are saying in principle, however you are paying the letting agency for a tangible service - and please don't think I was overly happy about handing over the money

The alternative is to rent privately, where your rights may not be protected, should you have any property issues you have to deal with a private landlord, and I am sure we have read horror stories regarding some of them.

The 100 pound letting agency fee provides a focal point, a certain peace of mind and also a legal contract which has been drafted by professionals (one hopes) and not downloaded from the internet

Furthermore with the 6 weeks deposit which is required now to let a property (and mine came to around 1000 pounds) at least you can feel slightly more assured that you are getting this back rather than paying it to a private Landlord who may invest it in the 4.10 at Kempton, or alternatively use it to pay other pressing bills.

toastiest

I am unfortunately back looking for a place to rent in the Romford area.

I'm finding it very stressful as there is a huge amount of demand for places but very little offered up. Whatever is offered up is often let out on the same day. This leaves me in a difficult situation as I'm getting kick out by the end of the month and of the few places that match my requirements, there is a lot of interested parties and I feel like I'd need to fight to get a place let alone having to worry about admin fees.

I feel that to get the place I need with all this high demand, I need to pay whatever the letting agents are asking... It is unfortunate but just how it is... If there is a demand, then prices go up admin fees included I wouldn't be surprised.