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

digitalphase

Some of those fees seem excessive.

We also have the same problem as you that there is a shortage of rentals compared with how many people are looking to rent, so did struggle a bit to find somewhere. Also the fact that we have cats put some people off. Though no agent would agree to let a house without it being viewed first - not that I asked, because I think that is a foolish thing to do - but an agent informed me of this.

We have been accepted on a house and are now going through the referencing process. We had to pay £200+VAT (so £240) for the referencing, as well as £10 for each bank reference. We aren't clear what the £240 is for. Printing off the agreement and sending a few letters off I think. I did query the charge with an agent before and they didn't have an answer it was "just what every agent does" :mad:

Still, this £240 seems a pretty universal charge around here. So nothing can be done. Also with the lack of properties and the rat race getting a place, you can't negotiate anything. We have wanted to move for over 6 months, been in a real position to do so for 2 months, but that doesn't get you anywhere. We could move this weekend, once all references are done. I resent paying these referencing fees then still having to wait ages, we are so impatient to move and love this new house.

There are no charges for protecting our deposit, that seems a stupid charge. I don't think they charge for it anyway, but surely that would be included in your £360?

I think we have a 'check out' fee for our current property. Basically for some kn0b to come round and check the condition of the house against their inventory. Not sure what that is off hand, but it's in our contract.

TBH I don't think you have any choice but to suck the charges up. Unfortunately with the housing market the way it is, they will easily find someone else willing to pay the charges, so they won't negotiate. And you'd end up missing out on your ideal house. Tough isn't it

SwanseaPropertyAgents

Its amazing what some agents charge or try to get away with.

All fees should be negotiable and you have nothing to lose by trying.

Reservation fee? Another con by another poor agent if you ask me. How long have these agents been in business? Probably one of those that set up offering landlords ridicously low fees to take on lots of property fast, then shut down 6 months later taking rents and bonds with them before opening up under a new name a month or two later.

Thats the problem with the industry not being regulated.

I've heard some agents take a reservation fee which is refunded when the tenancy begins to compensate the agent if the tenant pulls out, but even those should not be charged.

With regards to letting fees. Each agent is different, but many charge similar to the other agents in the same area. You will be getting charged for a joint tenancy. Tell them you want it in one persons name and pay half the cost. These fees cover various things and not only the credit checking. The agent is working for you as well as the landlord, so they will spend some time on arranging your tenancy. £100 - £200 is usually charged per tenant from my experience.

I know of some agents that charge landlords money to set them up an account with the DPS which is a free resource. Just greed, but they get away with it.

SwanseaPropertyAgents

Just to explain the tenant fees in more detail although some will still argue that it is money for nothing. We charge £175 and do not charge VAT.

Most agents outsource the referencing. This usually costs up to £40 per person and covers credit and referencing. Although it is outsourced we still have to spend around half a hour filling out information on-line and making phone calls. We then spend time drafting the tenancy, signing and witnessing signatures, moving the tenant in and making sure everything is ready and to show the tenant how everything works. For adhoc work we would charge £65 per hour, so 2 hours of our time spent on behalf of the tenant would cost £130.

Don't forget we have a busines to run, costs to cover and wages to pay, so fees are required to help cover the out-goings.

Enfieldian

SwanseaPropertyAgents wrote: »

Just to explain the tenant fees in more detail although some will still argue that it is money for nothing. We charge £175 and do not charge VAT.

Most agents outsource the referencing. This usually costs up to £40 per person and covers credit and referencing. Although it is outsourced we still have to spend around half a hour filling out information on-line and making phone calls. We then spend time drafting the tenancy, signing and witnessing signatures, moving the tenant in and making sure everything is ready and to show the tenant how everything works. For adhoc work we would charge £65 per hour, so 2 hours of our time spent on behalf of the tenant would cost £130.

Don't forget we have a busines to run, costs to cover and wages to pay, so fees are required to help cover the out-goings.

Yes, that is why you charge the Landlord, remember? To cover your outgoings and make a profit.

To say that you have to spend time "making" phone calls is absolutely ridiculous. Do you charge for answering incoming calls?

As for "drafting" a tenancy that is no more than inserting the tenants details into a Word document and pressing print.

"Moving in" What? You help the new tenants unpack, take meter readings, arrange utility transfers etc? Or do you just hand over the keys and let them get on with it?

You are already being paid for finding a tenant by the Landlord. You work for them, not for the tenant.

climbgirl

Completely agree Enfiedlian, these charges are absurd and it does smack of double-dipping when agents are already taking fees from the landlord.

We were relatively lucky I suppose and "only" got charged £40 each for a reference check. Although we are up for renewing soon and will be charged £125 so they can change the dates on a contract. Pretty impressive hourly rate when you consider how long it will actually take to do that job...

It's easy enough to say "fees are all negotiable" when the rental market is so competitive right now. Agents will tell prospective tenants where to go when they have so many more lining up for properties.

Enfieldian

Well, if you go onto a periodic tenancy at the end of your current one then you won't need a new contract and you won't have to pay any renewal fees.

climbgirl

Yes, it's certainly something we are discussing with the landlord!