Estate Agents lettings fees for new tenants, does this sound excessive?

chewmylegoff

The_Drama_Llama wrote: »

This is the bit that makes my blood boil, tbh. The reference/credit check is for the benefit of the LL only, it does nothing for the T (except show up as a search on their credit history). Yet the T pays for it...and doesn't just pay for it, but pays well over the odds for it.

I wish all LLs were like Artful and paid for the peace of mind they get from checking out their Ts.

the LL isn't charging, it's the LA's money making scheme.

what really concerns me about this agency is the "reservation fee", which is said to be to cover potential costs arising during the tenancy. this is ludicrous. the tenant is not the LA's client - the LL is. if any costs arise they should be billed to the LL's account, not the tenant's.

i wouldn't be happy paying this personally. i have paid similar fees for everything else mentioned in the past, which i regarded as inflated by a necessary evil. the reservation fee just sounds made up. i would ask them what sort of costs they envisage.

i expect what they are really doing here is billing you for a contract renewal fee one year in advance. if you extend the tenancy they will just keep your money. have you seen a draft tenancy agreement yet? if so what is the renewal fee that it mentions?

Dubber_2

BitterAndTwisted wrote: »

They can do whatever they think they can get away with. You can be absolutely certain that whatever they say about that £120 being returnable at the end of your tenancy you will find that they have weaseled a way to charge you for something or other. Probably breathing in the property.

This is exactly what I'm concerned about, I don't really mind paying it if I know it will be returned as long as I'm not late with rent, but I don't think I'll ever see it again once it is paid.

skint-student-nurse - I think what you are talking about is the holding fee we've paid, which is deducted from the admin fee if the tenancy goes ahead. The reservation fee is poorly named, as it is a different fee which seems to be so that they can make deductions if we are late with rent etc.

The LL lives around 2 hrs drive away so he is getting the agency to manage the property. Their office is very close to the property so I would have no problems with marching in there if something was broken and they weren't showing any interest in fixing it.

We've already exploited the flexibility to move quickly by negotiating a discount on the rent, so I don't think there will be much more we can do from this point of view.

I think I will speak to the agency about the reservation fee and the DPS fee, these are the parts that bother me the most.

pinkstarsx

When i moved out last year me & my friend paid almost £300 for the agent fees and references.
This year we're going through another agent and it's costing £200.

Never heard of the reservation fee - surely it's just your deposit that should be held. Which is held in a non interest account so ask where this reference fee is beind held?
It's a shame they're charging you personally for the deposit being held as it's part of the law and has to be in place so there's no way around that bit.

Perelandra

When I last rented, I had to offer a reduced rent on the property with the landlord, having learned about the excessive portion of the LA's charges (like yours, they were far to high, and unfair). I took the excessive part, divided by twelve, and reduced the rent offer accordingly- explaining to the landlord at the time exactly why I had to reduce the offer.

On the basis of this, the LL must've had a word with the agent, as the charges were rapidly reduced to a much fairer level, so I paid the original rent.

Dubber_2

My OH spoke to the agency this evening and the guy said that this fee isn't protected by TDS and when we pressed him on the issue of interest of the amount he said he didn't know. Tempted to go into their office tomorrow to discuss is but don't really want to get the label of 'awkward tenant'. Its taken us so long to find this house!

Enfieldian

Surely if an amount is "held" until the end of a tenancy it is therefore a deposit and should be protected in a TDS?

Also, one wonders what an agent would say if you agreed to provide an up to date copy or copies of your credit report at your own expense? At £2 a time that leaves a bit of negotiation up to their supposed £360.....

MummyCat123

Hey ya, I think it must be 'regional dependant'.

I have moved quite a lot recently with the Mr's job...

We rented in Windsor a few years ago and had to pay £480 in fees & Admin charges plus six weeks rent as a deposit, a £250 holding deposit, then 1st month in advance,

in Central Scotland a year ago, we paid a month's rent as a deposit, 1 month's rent in advance and £45 in fees,

then most recently to move to the Midlands (next week) they asked for a month's rent in advance, a month's deposit, £110 Credit check and referencing and £145 'Admin charges'.

I've noticed that some LA's also charge seperately for tenancy renewal, Inventory, Inspections and written references.

We were referenced by Homelet each time - although I was only credit checked for the Midlands move - different LA's have different criteria apparently (which cost £18) my OH was referenced using their £70 referencing service, which means that the LA added a mark up of £22 (not so bad) but my issue with them is that we're being charged £145 for them to write up our tenancy agreement, which should be within the remit of the LL's managements fees.

Like you say - if you want the property, you pay the pennies, but having moved so often recently, we simply refuse to book viewings now if the Letting Agent charges excessively. I'm quite shocked by paying for our tenancy agreement, but in comparison to renting down South - I shouldn't really complain lol

tyler80

When we moved into our current place we paid up for credit/reference checks and then the letting agent of the place we were living in tried to charge us for providing references to the new agents!

I got them waived in the end but took a lot of back and forwards between two sets of agents and the referencing company which I thought is was the admin fee was meant to cover.

It's all very well saying find a private landlord/letting agent with no fees but you often don't have the luxury of choice.

cjmumto2

I have never heard of the referencing fee. DO you have to pay the check in fee? If not then ultimately you are saving that. SO it works out in the long run

Dubber_2

Enfieldian wrote: »

Surely if an amount is "held" until the end of a tenancy it is therefore a deposit and should be protected in a TDS?

This is exactly my thought, and to be honest I wouldn't really mind IF it was protected as one months rent as deposit is less than I've had to pay in the past.

The agency explained the payment on the phone last night as being to cover instances where they have to get a contractor in to fix something, make an appointment with us to give access and we fail to attend. Not something we would do if an appointment was made so I don't see why we should hand over unprotected cash to cover it.

Apparently the £360 admin charge covers referencing, tenancy agreement, accompanied inventory checks, inspections and admin time for other paperwork. TBH most of these things should probably be paid by the LL, but I can accept it based on the fact that we are getting money off the rent for agreeing to move in quickly (the total discount over the 12 month contract works out to more than the admin fees).

Do you think I can insist on the £120 fee being protected as part of the deposit?