Admin fees for renting.

Smoosh

Hi, me and my boyfriend are currently looking into renting our first property. We've found and viewed a lovely 2 bedroom house in the Norfolk area that we're very interested in taking, however up until this morning when we spoke to the estate agents/letting people we were totally unaware of any admin fees They want us to pay them about £280 for the admin fees to do credit checks and everything, plus another £75 to credit check a guarantor (we'll need one as we don't earn enough per year other wise). As this is both of our first times renting we're very unsure about everything, although we're doing our best to research everything we need to know. I know there's no regulation as such over what the agency will charge for admin fees and that it varies from company to company, but is the above price reasonable or are we being completely ripped off? Thanks for any help!

gordonbennet

Sorry to say that those fees are fairly standard, and compared to some, actually quite resonable.

Just get them to be very clear what the fees are for and what is refundable if the place falls through (due to no fault of yours) for some reason. Also ask for a written schedule of ALL other charges that will be payable. Once they have 'got' you they may want to charge for things like the tenancy agreement (often £50-100) and an inventory (£50-200). Find out how much the landlord is paying for these too, because sometimes they charge both! Also, beware of charges later like renewal fees and exit inventory. And does it all include VAT?

Finally, if this doesn't work out, consider finding a private landlord who may not charge you anything except the rent!

staple28

I echo what gordonbennet said about checking also the renewal fees and exit inventory.

I just got a renewal letter and they want to charge me £125 (only £80 last year) just to renew my contract??? Mental!!!

jjlandlord

gordonbennet wrote: »

And does it all include VAT?

It's always worth bearing in mind that prices quoted to consumers are always deemed to include VAT unless expressly stated otherwise.
Just in case...

jjlandlord

staple28 wrote: »

I just got a renewal letter and they want to charge me £125 (only £80 last year) just to renew my contract??? Mental!!!

You are not obliged to renew: You can just remain in occupation and let the tenancy become periodic.

slyracoon

Those fees are pretty standard.

I've had 4 rentals in the past 5 years and each time it has cost approx £300 in 'admin' fees.

Don't forget you'll need 4-6 weeks rent as a deposit + 1 months rent upfront + the admin fees.

Also get the agent to confirm what admin fees you might be liable for once you are a tenant, many agents charge to renew contracts once your initial term expires (although you can refuse and move onto a periodic tenancy), exit inventory/check-out fees, late payment fees, etc. etc.

Caveat_Mortgagor

I cant believe everyone has said just pay it, especially as you have stated you have a low income.

Like everything in life, those fees are negotiable. Especially when the cost to the agent will only be about £10!

Try anything and everything to reduce your outgoings. Ask them to reduce the cost of the fees. Can you imagine how the agent would feel if they had to tell the landlord that the couple they accepted an offer from is not going to proceed because the agent wanted £350 in unnecessary up-front fees and the tenants thought it was too steep.

It is the agents job to work on the landlords behalf to let the property out as soon as possible to suitable responsible tenants, and minimise the void periods where the landlord is not recieving any rent.

To make sure your potential landlord is aware how much the fees are, and that the level of fees is a problem, ask the agent if the landlord would consider a reduction in the first months rent to cover all (or some ) of the fees. Go into the agents office in person and get them to phone him(or her) in front of you

Whilst s/he will almost certainly say no, it will ensure s/he knows how much the agents have asked you for, and if you walk away, s/he will be on the agents back wanting to know why they have scared off the tenants that he expected to be earning rent from. Who knows, he may well put pressure on them for you!

Whatever you do, dont just idly accept your fate.

Caveat_Mortgagor

staple28 wrote: »

I echo what gordonbennet said about checking also the renewal fees and exit inventory.

I just got a renewal letter and they want to charge me £125 (only £80 last year) just to renew my contract??? Mental!!!

As pointed out, let the initial tenancy expire and move onto the period tenancy. No new contract needed.

I paid a renewal fee of £25 about 3 years ago, but only because i had negotiated my rent down by £50 per month.

Every summer since then I have contacted the agent to ask them to reduce my rent. Whilst they have said no on every successive occasion, its only ever been part of a game on my part. They havent dared to try to put my rent up, much less ask for an unnecessary renewal fee. I pay about £150 a month less than similar houses in the area are advertised for.

In general, letting agents are lazy and poor negotiators. They rely on people being wet behind the ears who will simply pay what is asked. When confronted by someone who will question them and take them out of their comfort zone, they will do whatever it takes to get a signature.

serious_saver

That sounds about right for agency fees. They can vary between different agents and often they can be based on a percentage of the rent.

Ask them for a detailed breakdown of what the fees are for, and as gordenbennet has said, check what is refundable. If you think the fees are too expensive you may still be able to negotiate or arrange to pay in installments. Also and this is very important! Check whether fees would be payable on renewal of contract. Some agencies will just extend the contract or pass responsibility over the the land lord. However others may try to charge you the fee again when you try to renew in a years time. It's worth knowing this as far in advance as possible so you are not unexpectedly stung in a years time.

As you're first time renters, when dealing with agencies, my advice would be to GET EVERYTHING IN WRITING! If they won't put it in writing then get them to email and print off a copy for you records. no matter how insignificant it may seem now it could prove valuable if you ever have problems.

Harley80

I had been looking for a one bedroom flat for a long time, and found one I liked the look of for £700 pcm. I rung the estate agents up and asked before I arranged a viewing what would be needed in terms of fees etc. They asked for a month and a half deposit £1050, a months rent up front £700, admin fee £180, credit reference fee £200. A grand total of £2130 up front if I wanted it.

I know this isnt unusual and less than some agents. If you are going to rent you should budget and allow for the money upfront. Sadly I couldnt afford it so continue house sharing for now, whilst saving for a deposit to purchase my own house.

jjlandlord

Harley80 wrote: »

They asked for a month and a half deposit £1050, a months rent up front £700, admin fee £180, credit reference fee £200. A grand total of £2130 up front if I wanted it.

Sounds fair except for the reference fee, which looks like a con to keep £200 even if you fail referencing...