Enormous cost for credit check by letting agent

slicendice

Hi everyone
I'm in the process of looking round for somewhere to live as the landlord of place I'm currently in is selling up. I currently live in Sale (Manchester) and am looking to stay there if possible (though rent prices are stupidly high there!). I had a look at an apartment on Saturday and the letting agent who showed me round said that if I wanted to proceed then I'd have to pay £144 pounds for them to do a credit check on me. I was astounded...I mean, I know letting agents have a bad reputation for charging spurious fees, but I didn't realise it was this bad!

If I was to decide I wanted to rent the apartment, I'd certainly query this exorbitant (IMHO) fee, but I was wondering if anyone had any experience of dealing with letting agents who charge like this for a credit check? I was under the impression that credit checks, even fairly comprehensive ones, only cost around £20-30.

If anyone has any experience, advice, etc then I'd be very grateful

Thanks

kingstreet

The fee isn't the cost of the actual credit check. It's an admin fee they want to charge you for the job of "vetting" you for a tenancy.

Vote with your feet and go elsewhere.

Werdnal

Letting agents are not regulated and can charge what they like (or what they think they can get away with). When you look around this forum, that figure is actually cheap - seen twice that quoted here before!

As above, if you don't like, don't pay, walk away!

Remember too, check the small print before you hand over any cash, as if for whatever reason you fail the check, you will probably lose those fees!

_Andy_

Not sure what 'advice' you want. They can charge what they want. If you're really not happy with it, don't pay it and don't get that property.

theartfullodger

btw credit checks on tenants can be for as little as £8: It's a rip off.

And as mentioned many times, illegal in Scotland & has been since Rent (Scotland) Act 1984...

slicendice

Thanks for the info everyone. I've not been in the letting game for a long time so it's been a bit of a (re)learning curve, but this cost seemed outrageous and I wanted to get some confirmation of what is "normal". Guess it looks like I don't have many options - either pay it or walk away! It just really grates that they are free to charge such huge fees for something that costs so little.

And yes, it's definitely a case of not getting a penny of it back - pass or fail, that money's gone.

Werdnal

If you are not set on a particular property, ring around agents in the area and ask what their charges are before you start looking at their properties.

You could also look for a private LL and rent direct, cutting out the middle man. LL will likely charge you for the check, but nowhere near as much as an agent.

Remember that as well as the checks, you will need to find deposit and 1 month's rent before you get the keys. Many tenants are facing the same situation and it is not unheard of to be handing over anything in excess of £1K (check fees, deposit and 1st month), before you move in!

stclair

I am currently looking at properties in Manchester and all the ones I have approached all want between £150.00 and £185.00 for admin/credit checking fees totally shocking then they want 6 weeks rent in advance etc. I am sure its very much the norm however do they think I am made of money lol

Plus the actual check its self is not that expensive according to experian.

http://www.experian.co.uk/consumer/questions/askjames221.html

dawnie1972

I am currently in the process of looking for a new rental property and have been quoted anything up to £300 for the application fee. However one lenting agent I spoke to last week said they only wanted £60 as that was the actual cost of the credit check and they did not charge additional monies for their company - I have submitted an application with a letting agent at the weekend who charged £200 but on the receipt I was given it was broken down as £60 credit check and £140 administration fee - and yet they get a 3rd party to do the work. I also have to pay approximately £1700 on the day i move in for a rental property of £630/month.

VictoriaBlyth

My son had exactly the same problem - ridiculously high admin charges! He got around the problem by approaching the landlord directly and offering to pay his 6 months rent up front. I realise this is not a solution for everyone, but he effectively saved a months rent by paying up front - no doubt the landlord saved money too!