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Estate Agents Credit Check Fee's

Hello, I have just had a call from my sister asking me to be guarantor for a property she wishes to rent. I need to look into the worst case scenario of this but she informed me that so far the credit checks that her and her boyfriend have had done has cost her £150 And she will ahve to pay another £30. fo a credit check if I agree to be a guarantor. I can't understand where this fee comes from and how they can get away with it when I can tell them my score for £4.99. I have to call them for more information but does this sound normal? Perhaps I could over charge them for me to give them my report! How does a months rent sound?

Appreciate some feedback on this.:o

Thanks

Donna

Comments

  • lindsaygalaxy
    lindsaygalaxy Posts: 2,067 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I had to pay £100+vat for my credit check, nd another £100+ vat for my guarentors. Though they did say if i needed a copy for another house i could use the same one.
    £2 Savers club £0/£150
    1p a day £/
  • dunstonh
    dunstonh Posts: 118,554 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    A credit check costs me £1.95 per person.

    They can get away wtih it as they have to cover the costs of staff, offices, liability, administration, dealing with the landlord and possibly a guarantee scheme to pay for.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • if-only_2
    if-only_2 Posts: 1 Newbie
    edited 11 November 2009 at 3:29PM
    Is it right for a letting agency or estate agent to charge 134 pounds non refundable, for a credit check to at least 8 different people looking to rent the same home, knowing that only 1 of those people will rent it, if it is, i am disgusted that they can get away with this.
    that works out at 1072 pounds profit for 10 minutes work.
  • Heliflyguy
    Heliflyguy Posts: 932 Forumite
    Tenth Anniversary 500 Posts Combo Breaker
    edited 11 November 2009 at 4:33PM
    dunstonh wrote: »
    A credit check costs me £1.95 per person.

    They can get away wtih it as they have to cover the costs of staff, offices, liability, administration, dealing with the landlord and possibly a guarantee scheme to pay for.

    That all comes out of the credit check cost :rotfl:
    There I was thinking they were ripping people off. Still do in fact, not much you can do about it apart from shop around but in my experience there is not much difference between them and if there is they make up the money some other way.
    Dislike the whole sorry business, shame its not priced honestly, greedy lot they are.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I paid £176 inc VAT for a one person check. I don't have a guarantor, so no fee for that - I paid 6 months' rent up front instead.
  • Jowo_2
    Jowo_2 Posts: 8,308 Forumite
    if-only wrote: »
    Is it right for a letting agency or estate agent to charge 134 pounds non refundable, for a credit check to at least 8 different people looking to rent the same home, knowing that only 1 of those people will rent it, if it is, i am disgusted that they can get away with this.
    that works out at 1072 pounds profit for 10 minutes work.

    Never heard of this practice of multiple prospective tenants being simultaneously credit checked for the same property.

    Usually, when a tenant is interested in securing the property, they pay a holding deposit (which later gets transferred to the full deposit) and get credit checked.

    The holding deposit may have a clause in it which says it doesn't get refunded in the event they fail the credit check or withdraw from proceeding - this is to deter timewasters.
  • a} To be a letting agent requires no qualifications, no regulation, no membership of any professional body, no criminal records check, not even decent personal hygenie. Any of us could start business as a "Letting Agent" in 5 minutes after we read this sentence...
    b) Fees are pretty much what the agent can get away with: If the prospective tenant doesn't want to pay the agent will wait for another punter. "Free Enterprise" eh? Not very free, not very enterprising.
    c) Re. being guarantor: having signed you remain guarantor until the Landlord accepts the tenancy is ended. If you fall out with relative, they get shacked up with some dodgy person & stop paying the rent, you remain liable for the rent & any damages. You cannot say you want to cease the guarantee. Think carefully before signing... If not sure search this board with "Guarantor" and weep...

    Cheers!

    Lodger
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    Agree with what t~lodger says. But under c), you could amend the guarantee document to say that you can terminate your guarantee under the same terms as the tenant can terminate the tenancy. This might not be acceptable to the LL, but if anyone does become guarantor, they should take steps to ensure that they can quit.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • perhaps tenants should charge the agents to c/c THEM!
    Long time away from MSE, been dealing real life stuff..
    Sometimes seen lurking on the compers forum :-)
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    dunstonh wrote: »
    A credit check costs me £1.95 per person.

    They can get away wtih it as they have to cover the costs of staff, offices, liability, administration, dealing with the landlord and possibly a guarantee scheme to pay for.

    Where can you get tenant vetting done for £1.95? Nowhere I've seen. as a LL I charge tenants at cost for referencing and I agree agents always add admin costs on top. But tenant vetting is not the same as a £1 search of Equifax credit files.
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