First time flat renter help

darkknight84

Hi. I am looking for a studio flat , and have been in talks with a rental agency , and have organised a viewing of the flat tomorrow. The agent seemed eager for my business after i told him I could pay 6 months rent in advance to strike a deal if i like the place, and he gave me this grand total after i asked .
Admin Fee: £150
Letting Fee: £150
Deposit: £350
6 months rent: £2100
TOTAL: £2750.

I was a bit surprised with the double whammy of letting and admin fees, i was expect around £150 to £200 for the admin, I have never heard of a letting fee before.
The thing is I explained to the agent that I recently lost my job and will be moving into a new area to be closer to amenities (don't drive) And that I live with my parents right now so a previous landlord reference is not available. So all I can offer is 6 months rent upfront (not sure how long the contract is) and some photo id. The agent said thats fine.

My question is this. If i attend the viewing tomorrow, and i say "yes i like it, i'll take it" What can i expect to happen next? are they going to take me to the cleaners by charging me the admin fee, then phoning me a week later and saying "sorry, we have given the flat to another person" and still keeping the £150?

Any help of what to expect would be appreciated. thank you.

darkknight84

Can anyone give me some help today please, I don't have much time :eek:

Jabberwk

You need to ask the letting agent this as different agents will have different processes. Ask what the terms and conditions connected to the various fees are. Ask when each fee needs to be paid. Ask for confirmation in writing that paying this fee reserves the property. Ask whether, if the landlord decides not to let to you for some reason, the fee will be refunded and ask for that in writing if it isn't already in whatever forms or ts&cs you're given. Don't be afraid to ask these questions. They are normal and sensible and the agent will be used to getting them.

aggypanthus

If you are out of work you can claim housing benefit, from this viewpoint, I wouldnt be paying 6 months upfront.
Is it hard to find places to rent? Why rush this one?
They wont just offer it to you, they will do checks on you etc, and that it wont happen in a hurry.

darkknight84

If they do a credit check i'm in trouble, I had two catalogues do some damage to my credit score about 8 years ago, and i have not repaired it. I dont have a criminal record though, so that might be something

aggypanthus

Oh dear! They will do credit checks.

ging84

what do you mean by do damage to your credit score, letting checks are generally very basic, looking for bankruptcies, IVAs CCJs, that sort of thing, companies would not normally be allowed to check for anything more, unless you are applying for credit.

cynthiacharles

Ask him to give you the letting fee in writing and agreement should be government approved otherwise there will be lot of changes of fraud.

Benbr0wn

Not a financial expert but I've rented a few properties over the last ten years.

My thoughts:

- You do get letting fees if it's a proper estate agents (and not student letting). I'm surprised at there being both the letting and admin fees; usually it's just one (and they're called one or the other). I letted in Leamington Spa and they were pricey and I think someone even said it's more than other areas of the country.

- Basically they want guaranteed rent payments out of you. This is usually with a permanent job or you could technically go for a 'guarantor' which is where someone else guarantees payment, like your parent's having a mortgage or their own permanent job. I wouldn't bother; if you're desperate for your own place then you'll have to do the six month's rent option. Six months is usually the minimum duration that you have to do before you give notice.

- Once you've said you'll take it then they usually hold the property for you in 'good faith'. You'll then have to go through the full application process which can take a week or so and this is where you have to do a bunch of forms, you'll need references and a lot of details, then pay the admin and deposit fees. Once it all gets processed and accepted by the landlord then you'll get given a date to come in and get the key. Speak to the estate agent if you want to confirm this.

- I wouldn't rush into it and would reconsider if you need your own place. If you're just keen to get out of your parent's place (Understandable!) then I'd really consider sharing accommodation instead, try rightmove.co.uk or flatshare.co.uk. You can get much cheaper rates, no admin fee, shared utility bills and potentially more choice for who you live with.

- As far as I'm aware, they certainly won't keep any of the fees unless they accept your application, or if you accept it and then cancel.

darkknight84

I sent an email to the letting agency this morning informing them that i wont be viewing the property at our agreed time due not wanting to waste anyones time, and my money (though i didn't say the latter) You see i couldn't sleep last night thinking about handing over £150 only to have them reject my offer because of my credit report, and then them keeping the admin fee. so i was weighing up whether to go or not. after all, I had no guarantor, no references, and a bad credit score. it was also p**sing down outside, and that sealed the deal. I contacted the agent and apologised for wasting his time, and detailed what was playing on my mind to make me cancel, from this he immediately replied, informing me that because I was offering six months rent up front (the length of the tenancy) they would not bother with a credit check, and also give me some of my letting fees back. from this, i hopped on a bus and made my way to the viewing at a later time of day. Met the agent, friendly chap, same age as me,and it turns out he was from my area, and hung about with a group of lads from my old school who i also new (small world) so we struck up some rapport off the bat. Viewed the place, lovely area, lovely old victorian building, but a neglected flat, all due to the female tenant who was living there (at work at the time) everything was messy and dirty, and overly cramped because of the overbearing furniture and dirty washing and open bin bags on the floor. I thought to myself, who would live like this. I asked the agent if the place would be cleaned, he said yes, by professionals, so that eased my mind, and i could then look past the squalor and imagine the potential. turns out, this is a different flat than the one i thought i was seeing today, as that was let. this one was £375, but the agent would try and get it down to £350. he phoned the landlord and made the offer of deposit and six months rent upfront at £350 pcm. the landlord declined. As i was being driven to the bus stop, I suggested a new bid, six months rent, and at the end of that six months, 3 months rent upfront and then a month by month basis. And written as a contract clause that if i cannot pay, i must immediately vacate. The agent was impressed by this, pulled over and phoned the landlord again. He made the pitch, and i could hear the landlord say "can he get a guarantor" the agent replied "no" so the landlord again declined the offer, I then told the agent to hang up, because i'm not sweetening the deal anymore than that for an ok flat that is currently a hovel. The agent agreed, and we left on good terms, and he said he gets loads of properties around that area, so he'll call me when something comes up. He did show me another flat just up the road, that was quite decent. great kitchen, but rubbish bathroom (cramped with warped flooring) and the current tenant were there who we woke to get the viewing (awkward) this place was mine if i wanted it, but the dirty mattresses on a number of the surrounding houses front gardens and the gang of chavs hanging around outside was a bit of a put off, so i declined that one.

Wow, that turned into a long tale of my days events. But the way i see it, if you fine people can be bothered enough take the time out your day to offer me advice on my upcoming events, i can take the time to detail its conclusion. Thank you for all your help.

RAS

darkknight84 wrote: »

If they do a credit check i'm in trouble, I had two catalogues do some damage to my credit score about 8 years ago, and i have not repaired it. I dont have a criminal record though, so that might be something

Have you actually checked your credit record?????????

Defaults drop off the record after 6 years.

Your biggest problem may be having no debts with which to ge3t a credit rating.