Letting Agent Fees

Blondetotty

Quick question on behalf of a friend who is considering renting a property through a company called Parkers from Totton (nr Southampton). They've discussed fees and she has been told the following
£300 set up fee
£125 tenancy renewal after 6/12 months depending on how long she signs for
£200 check out fee.
The £300 I get although still consider it steep!
The £125 they want to renewing after her initial term and on the form it says basically if you don't renew you are required to vacate after the initial term. I was under the impression this went on to a rolling contract after the initial term. Can they insist she keeps renewing?
The £200 has wound me up. They want an addition £200 in addition to the deposit which is refundable after checkout once all cleaning and outstanding fees/charges have been paid. So basically an extra sneaky deposit on top of the deposit as that as to be protected. Nothing in there about protecting the £200 checkout fee as it's not considered a deposit.
They also have in the terms a note that they will do an inspection every 3 months notifying her well in advance of the date and time and she is entitled to be present if she wishes. Can they demand this? She's lived with me so I know she isn't going to trash the place! as she is very clean and respectful but she's annoyed about having to have strangers round every 3 months
Any advice, info?
Thanks!

G_M

Very expensive.
Set up fee? What is this? The landlord will be paying the agent for the tenancy agreement etc - agent is charging themboth!

Or is this for vetting? Credit checks/taking uo references? Still very expensive!

It is common for the landlord to pay the check-in inventory fee and the tenant to pay the check-out inspection fee. But £200?....!

Renewal after 6/12 months? Normal, but read this post here.

Inspections are normal. Some LLs even try to do them monthly! I believe after the first 3 months, and then 6 monthly thereafter is fair/sufficient, but there is no 'rule' about this.

Of course, the tenant could simply refuse to allow access at all when the ime comes, but this is not likely to endear tenant to LL, or encourage renewal of the contract....

vax2002

Look for another let.
advanced set up fees are illegal.
Plus many operate scams where the advanced fee is non refundable, they claim you have been rejected for the property and pocket the fees.
If they do this with 20 or so people every week they are on to a good scam netting £40,000 a week for nothing.
look elsewhere

BitterAndTwisted

Blondetotty wrote: »

Quick question on behalf of a friend who is considering renting a property through a company called Parkers from Totton (nr Southampton). They've discussed fees and she has been told the following
£300 set up fee
£125 tenancy renewal after 6/12 months depending on how long she signs for
£200 check out fee.
The £300 I get although still consider it steep!

The £125 they want to renewing after her initial term and on the form it says basically if you don't renew you are required to vacate after the initial term. I was under the impression this went on to a rolling contract after the initial term. Can they insist she keeps renewing?

No, they can't although your friend risks being given notice if she insists of going onto a rolling periodic tenancy. One can understand the agent's keenness on having a tenant feel compelled to resign and it could be the case that the landlord would prefer the confort of having their tenant tied in to a defined length of AST. There's no right or wrong about this.


The £200 has wound me up. They want an addition £200 in addition to the deposit which is refundable after checkout once all cleaning and outstanding fees/charges have been paid. So basically an extra sneaky deposit on top of the deposit as that as to be protected. Nothing in there about protecting the £200 checkout fee as it's not considered a deposit.

But it isn't a deposit, it's a fee. A fee for carrying out the check-out inspection. It's common for the landlord to pay for the check-in inspection and a tenant the check-out. £200 is ruddy hefty though.

They also have in the terms a note that they will do an inspection every 3 months notifying her well in advance of the date and time and she is entitled to be present if she wishes. Can they demand this? She's lived with me so I know she isn't going to trash the place! as she is very clean and respectful but she's annoyed about having to have strangers round every 3 months.

You know that she's likely to be a responsible tenant who will take proper care of the landlord's property but the prospective landlord and their agent don't know that! In my opinion, any landlord who doesn't insist on regular periodic inspections with a new tenancy is not sane.
Any advice, info?
Thanks!

However, your firend can insist that the inspections take place on a date and at a mutually convenient time. They have no right to enter the property without her consent when she is not there. This in not necessarily a conversation I would be willing to have before I'd signed the tenancy agreement. Altogether too many landlords and agents believe they have an absolute right to enter their tenant's homes at will. They do not, regardless on any shonky or unenforceable clauses they write into their tenancy agreements.

I think your friend should consider finding a property through a different agent. It's a seller's market in rental property so your friend could find that all agents in the same area charge fees at a similar, eye-watering level.

tradecarbon

Blondetotty wrote: »

£300 set up fee
£125 tenancy renewal after 6/12 months depending on how long she signs for
£200 check out fee.

Any advice, info?
Thanks!

One or two months deposit which we will call setup fee. If you have damaged the place then you lose the deposit and they have the right to claim for damages not covered by deposit.

No way should there be a renewal fee, if you stay, they will just hang on to the deposit for the new term.

Checkout fee no way, this is made up rubbish. I would recommend being there for all inspections

I agree, look elsewhere..

Blondetotty

Thanks everyone, thats very helpful. I think she's going to look for a different property with a different LA.
I'm considering setting up myself though. With these rates advertised, I could make a fortune and it appears anyone can set up shop and charge what they like!!

purple.sarah

I would shop around for a different letting agent. The prices sound steep. I recently viewed a property that seemed nice but the LA was charging £205 for reference checks and £100 additional pet deposit per pet! I'm viewing a place tomorrow with an agent that charges £150 fees for all 3 of us and doesn't charge a pet deposit, which definitely makes a difference! There is some variation between LAs. I'm not sure what the £300 'set up fee' is but if it's for reference checks that is insane for one person!

Inspections every 3 months with plenty of notice is not bad though. I know she doesn't want strangers round but she can be there when they inspect and if she has a 6 month tenancy that's only twice throughout the term! It's not a reflection on her but just standard procedure to protect the property. You may find the same thing with other LAs.

tbs624

purple.sarah wrote: »

I would shop around for a different letting agent.

...or consider finding a LL who self manages their properties and bypassing LAs altogether

Local Council may have a list of private sector accredited LL, the local and national LL associations may be able to give some contact details, or the OP's mate could place their own accommodation wanted
( no agencies) ad.

No training, expertise or qualifications are currently required for anyone to set themselves up in business as an LA.

tbs624

tradecarbon wrote: »

One or two months deposit which we will call setup fee. If you have damaged the place then you lose the deposit and they have the right to claim for damages not covered by deposit.

No, the term "set up fee" usually refers to sorting the initial paperwork out for the tenancy, and many LAs like to try and double charge for that work, slapping both T and LL with a fee.

tradecarbon wrote: »

No way should there be a renewal fee, if you stay, they will just hang on to the deposit for the new term.

Again, LAs will seek to levy a charge on both LL& T for producing a copy of the original FT tenancy agreement with new dates on it. See others' comments on Statutory Periodic agreements.

tradecarbon wrote: »

Checkout fee no way, this is made up rubbish.

It may be an unwelcome extra cost but it is not "made up rubbish": many LAs now use third party inventory agents and it is usual that LL pays for ingoing cost and T gets charged for outgoing one.

It is obviously vital that LLs and LAs are fully upfront about any costs which may be levied against the T before the T lays out any money for the tenancy - Ts should ask for confirmation in writing.

tbs624

vax2002 wrote: »

advanced set up fees are illegal.

Could you clarify your comment vax2002?

It is illegal for LAs to charge for a T to register with them when searching for accommodation but that is not the same as "set up fees"