Would we get approved to rent?

thecornflake

We've just sold our flat and have found a place to rent. The fees were as follows, in order of paying -

£300 holding deposit to hold the property, paid as soon as we completed (yesterday)

Tenancy agreement fee - £88
Credit check/references - £50 per tenant
If guarantor required - £25 per guarantor

These fees are taken out of the £300 holding deposit as they are needed. The credit checks are first, if they fail and we don't go any further, then we get the rest of the holding fee back, so we've only lost what they have 'spent'.

They also happen to have a special offer this month of 50% discount on fees, so this will be £44 for the agreement fee and £25 each for checks/refs.

The bank may also charge for providing the bank ref.

There is some note about stamp duty on the agreement possibly having to be paid but I'm not sure what that is yet. I intend to check it out today.

As an important note none of this can be paid be cheque - it all has to be cleared funds, i.e. bankers draft, counter cheque or cash.

The agents said to allow two weeks for refs, although a private LL told us that shoul donly take around 3 days max so they may be done sooner.

Once all refs etc are done, provided the property is ready we need to pay one month's rent in advance and 6 weeks as the proper deposit. Anything left from the holding fee is deducted from this. As we won't get the money from our sale until completion day, which is the day we need to be out of our old place, to have an overlap so we have a few days to move in means finding this money beforehand, but luckily my parents are lending us this as it's only for a week or so.

There is also something about a 'check-out' fee when we leave and a 'tenancy extension fee' presumably if we stay on after 6 months. Presumably these are just ways for the agent to make some more money.

We have a few unpaid bills and one months mortgage arrears added on to the mortgage as we knew it would be paid off soon, so waiting nervously to hear the results of the credit check which should be tomorrow.

olibearhorse

Gosh - we seem very reasonable in comparison! These Letting Agents don't half like to make money out of tenants!

thecornflake

olibearhorse wrote: »

Gosh - we seem very reasonable in comparison! These Letting Agents don't half like to make money out of tenants!

Very true. For comparison we looked at a private rent for the same each month and she charged £50 for all refs etc for both of us and was happy to take the month in advance and deposit a couple of days after we moved in. Shame it wasn't a nice house.

olibearhorse

thecornflake wrote: »

Very true. For comparison we looked at a private rent for the same each month and she charged £50 for all refs etc for both of us and was happy to take the month in advance and deposit a couple of days after we moved in. Shame it wasn't a nice house.

I am appalled that they want to charge you a 'check out fee' and a 'tenancy extension fee' - this is daylight robbery! If you stay on after your fixed term, you become a 'period tenant' (no fixed term - just roll on month by month) I wouldn't advise you pay a fee for the benefit of another fixed term, 'periodic tenancy' is perfectly legal and normal. :rolleyes: no wonder our tenants stay with us for a long time if this is what Letting Agents are charging.... Poor you!

KatieF

thecornflake wrote: »

Very true. For comparison we looked at a private rent for the same each month and she charged £50 for all refs etc for both of us and was happy to take the month in advance and deposit a couple of days after we moved in. Shame it wasn't a nice house.

This may be a silly question but...how do you find private rentals??!

rosysparkle

Gumtree or local papers is a good place to start looking.

Not all agents structure their fees as above, we don't. We don't charge renewal fees or check in/check out fees.

real1314

It never ceases to amaze me what Letting Agents will charge, whilst pocketing 10% of the rent as well.

£50+ for a credit check that can be done for under £10
£50+ to set up a tenancy agreement that gives the LA 10% of the rent
£50+ to renew a tenancy agreement that saves the LA from re-advertsing and ensures there's no void, which would lose them 10% of the rent for the void period

Find a good private landlord if you can.

Even if you lose your deposit at the end (which can happen with any letting), with a tenancy of £450 a month for 2 people, you'd pay £150 to start, another £50 for the 2nd 6 months and maybe £50 check out fee = £250 for the LA on top of the £540 they've picked up over 12 months.

Going private you might not pay anything!

rosysparkle

I can assure you Letsure's referencing costs considerably in excess of £10. And we don't charge set up fees or renewal fees or check out fees.

The staff don't work for free, I like to be paid at the end of the month anyway!

steffi1987

I am currenly a student nurse and due to qualify in january but at the moment im at a stand still as i am due to have a baby anyday now so im on mat leave. I am looking to rent a property the only problem is i have 2 defaults from 2 years ago these were recoreded due to an ex gaining credit in my name as soon as i was made aware i paid them off. Anyway cut a long story short im worried that i will be turned down from the letting agence due to the defaults. I can have a guarentour no problem and i can prove to the letting agency through bank statements that i can pay bills and keep up with regular payments each month i will also be claiming housing benefit till i qualify so i can have that paid straight to the landlord so there is no chance i will miss a payment. Anyone got anyideas or past experience of how defaults on their credit history has affected them when renting? Or anything i can do to reasure the landlord i will be a good tenant? i seriously am loosing sleep over this

olibearhorse

Hi Steffi

We have accepted people with defaults, as long as you are honest, explain why you have them and like you said, offer a good guarantor, you should find some landlords out there quite happy to take you on. They probably have defaults of their own!

Good luck