Letting agents admin fees

mouthscradle

We're currently renting and have applied with another agent for a new rental property, we have been charged a fee of £150 for the "admin fee" involved in checking our references.

No-one has actually mentioned this to us, but I've heard from elsewhere that they also have a further fee for arranging a continuation of the rental agreement once our 6 months minimum tenancy period is over.

We've been at the house we're in now for 2 years and didn't have to pay any such continuation fee, the agreement simply went onto one in which as long as we continue to pay our rent each month, we stay until we give 1 months notice or the landlord gives us 2 months notice. It seems pretty straightforward, so why would an agent be entitled to charge us extra for this? Would we be within our rights to request from the start that this ongoing type of contract is used, as we're pretty sure we will want to stay there for at least a year.

Thanks

scrummy_mummy_2

An agent can charge what they like for 'services' they provide.
You currently have what is called a periodic agreement. Initially, (usually) a tenant signs a fixed term agreement (for a set time) which is usually for a period of 6 months....if another fixed term agreement is not signed, the original tenancy and the main terms automatically transfer onto a periodic or month to month contract.
Agents will sign tenants up onto new 6 month contracts because they can charge them a renewal fee and then sit back for a further fixed period and collect their commission guaranteed that the tenant 'has' to stay for that fixed period!
If you go to a periodic or month to month basis....you could leave, shock horror, with only a month's notice and they would have to 'manage' this situation more closely.
Legally, an agent cannot make you sign another fixed agreement, but the landlord does have the right to refuse your tenancy on a periodic basis. So if the Landlord (possibly under 'guidance' from the agent, decides he wants another fixed term...then that is what will happen.
Signing an initial contract of 12 months will get you out of paying a renewal fee twice in one year and would probably be acceptable to landlord and agent but if you want to stay on you will probably have to pay the renewal fee for another fixed term unless you can get the landlord to agree to a periodic.

prudryden

Cost of doing business. You are free under our economic system to negotiate.

mouthscradle

I think I will speak to the landlord about it, and see what his intentions are. He is a really nice guy, very accomodating so I don't think he will have a problem with this. Thanks ever so much