Ripped off on Application Fee

1565,004,126

Recently went to see a property and it was perfect and all. Until the agent casually mentioned the application fee of £250 each and there are four of us total. £1000 for Application Fees. That's four times the amount of our last fee with another landlord (something like 250 that was for all three of us - no fourth then). Sure enough later on he did say something like £230 each but isn't that still way to high?

Unless the renting market crumbled away in my divine absence am I right to think this is a pretty big danger sign of an untrusty/sketchy agency? Safe to say we now have other houses higher on our list now, but are going to barter soon.

What is the normal acceptable fee these days? They do have to make 2 guarantor forms and checks and I doubt that happens to cost like £400 a pop. Whats the general consensus on a fee for four people? Opinions? =/

ruggedtoast

They can charge what they like, and you can choose whether or not to pay it.

If you don't the next people through the door probably will.

theartfullodger

This would be illegal in Scotland (Rent {Scotland} Act 1984).

Come on Engerland, keep up!!!

_Andy_

They can charge what they like. Don't like it? Go elsewhere.

Using your approach, every retailer and service provider would have to charge the same for everything.

Whilst what you paid is probably fairly high, it doesn't make it a 'rip off'.

Fire_Fox

Telephone a number of agencies in your area to get a feel for the charges, varies around the country.

cvt1

Go elsewhere . There are plenty of reasonable agents and plenty of agents who charge ridiculous fees to reference tenants, whilst also charging their client, the landlord too.

Whilst i accept that they have to make money to survive, there are those who are just greedy and are on a winner when it comes to most tenants, who want the properties.

They aren't likely to offer any benefits as a tenant isn't an agent's client.

Find a better agent. There are plenty of rental properties out there.

The sooner suitable regulation comes in,the better.

thelem

Tell them you're not willing to pay such a high application fee, but would take the property if you only had to pay one fee. At best they might accept your offer (particularly in the run up to the difficult christmas period), at worst you're letting the agent know why their property isn't being let.

tbs624

_Andy_ wrote: »

They can charge what they like. Don't like it? Go elsewhere.

Many LAs effectively act as a cartel

_Andy_ wrote: »

Using your approach, every retailer and service provider would have to charge the same for everything.

Housing is a different issue and LAs already charge their client LLs so are double charging.

_Andy_ wrote: »

TWhilst what you paid is probably fairly high, it doesn't make it a 'rip off'.

No probably about it. A third party referencing company will charge between around 18 and 60 quid depending on how in depth the check is. Most LAs get a discount for bulk orders and they tend to use the midway priced ones. Add in a couple of additojnal letters/phone calls for chasing up employers plus hitting the print button to print the tenancy agreement etc and £250 per person in charges looks decidedly unreasonable.What's your definition of a rip off _Andy_?

I'd hazard a guess its different to may other people's, particularly those Ts (and LLs) who do get royally ripped off by unregulated, unqualified etc LAs.

tbs624

thelem wrote: »

Tell them you're not willing to pay such a high application fee, but would take the property if you only had to pay one fee. At best they might accept your offer (particularly in the run up to the difficult christmas period), at worst you're letting the agent know why their property isn't being let.

Better still find out who the LL is and let him/her know that the main obstacle is the LA's greediness.

SuzieSue

tbs624 wrote: »

Better still find out who the LL is and let him/her know that the main obstacle is the LA's greediness.

Yes, most LLs would be outraged if they realised that the fees were so high.

Unfortunately, many inexperienced LLs don't think about asking what the LA charges the tenants before they agree to sign up with them, but for most experienced ones it is one of the most important questions and would be a deal breaker if it was too high.