MSE News: 25% 'ripped off' by letting agents

Former_MSE_Helen

"Almost a quarter of people feel they have been landed with unfairly high fees by letting agents ..."

Read the full story:

25% 'ripped off' by letting agents

tbs624

This is from the Shelter survey of 5379 tenants - see http://england.shelter.org.uk/news/september_2012/1_in_4_ripped_off_by_letting_agents

I'm surprised that the "rip off" figure was that low.

We've suggested on this board that Ts who are disgruntled about spurious LA fees should contact their MPs, the Housing Minister and Shelter/CAB campaigns officers.

Anyone wanting to follow up their own experience via Shelter can do so here

Pressure needs to be kept up : here we are in 2012 , but seealso this CAB page from 2009- http://www.citizensadvice.org.uk/press_20090521

Reaper

When I rented my house out I remember being amazed at all the sneaky tricks the agency did to add to their rates such as charging both landlord and tenants for doing the inventory.

Another example is I know I was on the cheapest gas and electricity tariffs but they switched companies as the tenants moved in (without asking them) and pocketed incentive money for doing it.

So for some trivial extra in the agency's pocket the tenants ended up paying much more for their gas and electricity.

bargepole

I really don't know why anybody uses letting agents, they are lower in the evolutionary chain than car clampers, recruitment consultants, and debt collectors in my opinion.

I had a flat to rent earlier this year, I advertised it in the local paper, had about 20 replies, and let it to the first professional couple who came up with good references. The rent is paid by standing order on the first of every month, they are keeping the place spotless, and getting on ok with the occupants of the other flats.

All of the necessary paperwork, such as tenancy agreement, inventory forms etc. I downloaded from free online sources, and the tenants are free to make their own arrangements over utility suppliers if they wish.

Heliflyguy

I would put it higher than that as well and according to Housing Minister Grant Shapps regarding renting is that "Overall the sector is performing well".
Quite who its performing well for he doesnt say but no need for any more legislation in England then.

tbs624

The trouble is that only a very small percentage of Ts who are cheesed off by the antics of LAs will actually go on to contact their MP, and/or Mr Shapps etc.

They have a grumble, cough up those appalling fees and then leave matters until they are next due to renew their FT or move to pastures new.

Time and again, even on here , Ts are dismissively told "its standard practice" when querying the extra few hundred quid they are being charged by LAs to get a roof over their heads. It may have become an increasingly "standard practice" by grasping LAs but that does not mean that the excessive fees should not be challenged.

UnitedSum

tbs624 wrote: »

Time and again, even on here , Ts are dismissively told "its standard practice" when querying the extra few hundred quid they are being charged by LAs to get a roof over their heads. It may have become an increasingly "standard practice" by grasping LAs but that does not mean that the excessive fees should not be challenged.

Sadly in certain parts of the country (south east at least) demand is so high that tenants really don't have much leverage when it comes to challenging LA fees. If they refuse, there are people waiting behind them willing to pay it. It is a real shame.

tbs624

UnitedSum wrote: »

Sadly in certain parts of the country (south east at least) demand is so high that tenants really don't have much leverage when it comes to challenging LA fees. If they refuse, there are people waiting behind them willing to pay it. It is a real shame.

By "challenge" I meant more than simply ( and literally) trying to argue the fees downwards, although some Ts are successful with this.

Ts can instead look for self-managing LLs who tend to charge only the actual costs of a third party referencing rather than an inflated LA -style fee .

Bear in mind that we're not just talking about initial fees here, but those which LAs try to apply at renewals time ( both to LL and T)

Ts can, as has already been said, apply pressure via the Govt, their MP and the Shelter/CAB campaign groups.

UnitedSum

tbs624 wrote: »

By "challenge" I meant more than simply ( and literally) trying to argue the fees downwards, although some Ts are successful with this.

Ts can instead look for self-managing LLs who tend to charge only the actual costs of a third party referencing rather than an inflated LA -style fee .

Bear in mind that we're not just talking about initial fees here, but those which LAs try to apply at renewals time ( both to LL and T)

Ts can, as has already been said, apply pressure via the Govt, their MP and the Shelter/CAB campaign groups.

Securing a property that is marketed and managed by landlords themselves is not possible for everyone. Especially not in the south east. Take a look at the number of properties on the market in the south east and check out the percentage advertised directly from the landlord. That alone should tell you why tenants don't all succeed in securing such properties.

Renewal fees are in my experience a tiny fraction of the amount that must be paid up front for administrative fees to the letting agent. I agree they should be challenged, but even successfully axing those still leaves a ridiculous amount. The amount charged by LA's varies by company, of course.

I agree that more tenants should contact their MPs, etc. regarding this and surely enough don't do this. But, in tenants' defense, it's not exactly a secret to the government that something needs to be done.

mynameisclare

bargepole wrote: »

I really don't know why anybody uses letting agents

Because that's where most of the properties are!

What we need is regulation, eg a cap on fees or a requirement for agents to have at least some knowledge of the law.

carelily

I know i was ripped off by the letting agent my landlord used for a fact, my rent was paid in full and up to date but sporadically i'd get letters from the letting agent saying i owed quite a few hundreds of pounds? Luckily i keep all my bank statements and could prove what i paid (by cheque) but to ask for a record of my rent paid was always ignored?
I ended my tenancy just as the landlord seemed to be wising up. Erm in my opinion only - the letting agency staff were robbing the tenants blind by saying they were in arrears and actually pocketing the extra rent that was paid ...
I'm not confrontational by any means and know they owe me quite a lot but feel happy to be out of it and living where my rent isn't in question and issues are dealt with as soon as reported.
As i left the last place, the landlord had taken all of his business off of their books and employed his own private staff to over see his properties. The new staff informed me i wasn't alone in my views and other tenants were taking it further.
Too late for me but hopefully the next tenants will be treat within the law and fairly.