Expensive agency fees!

Timskii

Hey everyone,

I apologise if I'm repeating what might be a very common question here, but I'd appreciate peoples thoughts on this matter.

Me and my girlfriend are moving together with another couple we know. We found a lovely house to rent though the letting agency, sovereign house.

However, now we have the paperwork were quite surprised as to how much money the letting agency is asking for in return for moving in. My previous residencies have been though private landlords, so this would be the first time we've dealt with an agency.

The rent is 400£ PW, to which we had to pay 500£ straight up for a holding fee. This money comes off the first months rent. Then we have to pay 6 weeks security deposit and then another months rent in advance of the moving in date (20th Jan). All this, though my quick research is common practice.

The fees I'm quite disturbed about are these extra fees they're forcing us to pay prior to moving in too: 250£ per person agency fees and another 150£ 'check out fee'. I would also point out that none of these agency charges were mentioned to us over the phone or at the viewing. We enquired about the check out fee, and (vaguely put to us) this was to do with taking an inventory. Also, I might add, that we're the first tenants moving in as the current people living there own the flat, and the flat is part unfurnished (sofa and table are the only things there).

All in all were looking at nearly 4000£ upfront before we move in. These agency fees alarm and annoy me because I can't possibly see any reason why these fees would cost so much for what they are. Not only that, but they seem to be very militant on their payment : giving us 48 hours for the documents to be sent to them in risk of having the holding fee to be kept, while giving us no clear answer as to when these other costs should be paid other than 'ASAP'.

Can anyone possibly advise me on the legitimacy of these costs? I'm sorry if I may be being ignorant, and I knew agency fees have always been renound to be extortionate but I didn't think it would be this bad!

Many thanks and merry Xmas

hcb42

It is common although yours seems harsh

We rented last year, £800 per month rent, we paid £950 deposit plus £800 rent, and possibly an admin fee, but nothing like that amount...

(of course they tried to keep some deposit for ridiculous reasons when we moved out, (having paid for professional clean, it was a lot cleaner than when we moved in even -we soon overcame that one..robbing ****!!)

Knalchemist

Mine was £700pm rent.

So we paid a £1050 deposit (of which £400 was a holding deposit), £700 advanced rent, £125 tenancy agreement, £150 for referencing fee's…. plus there was a fee for 'check in' where they do inventory prior to you moving in, I think this was about £150.

So it all came to over £2000, just for a one bed flat. Was ridiculous.

jaymidlands

WE took 143 photos of small damage bits when we moved into the house we are in but unluckily for the agency they didnt do a invintory on move in day or since being in(We are also moving again in january to a bigger house(we have 2 kids who really need there own rooms) and our next house is a months rent plus half as deposit and admin fee of £270(rent is £650 for a 3 bed house)

Timskii

Urgh, it's insane. I just don't like how they put on a nice face when you show interest but then hound you for over inflated charges as soon as the contract process starts.

And just a lovely cherry on top, we have to pay 250£ per person to renew the contract after 12 months.

Thanks all

Guest101

Timskii wrote: »

Urgh, it's insane. I just don't like how they put on a nice face when you show interest but then hound you for over inflated charges as soon as the contract process starts.

And just a lovely cherry on top, we have to pay 250£ per person to renew the contract after 12 months.

Thanks all

No you dont, just let it go rolling month by month after the initial 12 months is up.

on your original question, its quite high fees (did you ask prior to paying the deposit, i guess not) - if u did and they didnt tell u, u have every right to a refund.

the deposit, holding fee and rent is normal.

The admin fees are high, but with £1600 a month rent, im guessing high end area of manchester or similar. So not surprising.

Remember not everything in the agreement is enforceable.

sandsni

And many "accidental" LL's who employ agents actually have no idea the tenants get charged fees for things the LL is also paying the LA for (like referencing and contract renewal). I have to hold my hands up and say I had no idea when we first used an agent, although their fees are nothing like what you're quoting. I think it was £30 for referencing per person to the tenant. I suppose it depends where you are and whether someone else is likely to come along quickly to pay the huge fees just to find somewhere to live. I don't mind them charging a small fee to weed out the timewasters, but from what I've read here, some of them seem to be running some kind of legal extortion racket!


Unfortunately, until LA's are regulated, they can pretty much charge what they like (although I think there are tighter restrictions in Scotland) as long as they can find some captive audience to pay it.

Timskii

They've actually told us that we'd have to pay that fee once the 12 month contact has ended. I think you'd agree that's extortionate and stupid.

They told us at the viewing about agency fees but it was put to us like so "around 150-200£ per person". We were told exact pricing would be sent with the contract, which they did.

After more research, this all seems to be common practice. And definitely common practice for East London (Victoria park)

Guest101

Timskii wrote: »

They've actually told us that we'd have to pay that fee once the 12 month contact has ended. I think you'd agree that's extortionate and stupid.

They told us at the viewing about agency fees but it was put to us like so "around 150-200£ per person". We were told exact pricing would be sent with the contract, which they did.

After more research, this all seems to be common practice. And definitely common practice for East London (Victoria park)

And all letting agents are honest... no you dont, unless you want another 12 month contract.

benjus

This is one reason I always prefer to rent direct from the landlord.

If you can't find a place you like direct, it's best to ask the agent what their fees are before putting down any deposits. Last time I did this, in Blackheath, London, we used a local agent that charged something like £200 total fees for two people - which seemed acceptable.

There are plenty of letting agents that take the pi$$ though.