Agency 'application and referencing fees' - am I entitled to a breakdown?

brutal_deluxe

I am currently dealing with a letting agents who are charging £240 up front just to apply for a chance of being considered for tenancy at one of their properties.

All they say is that its an 'application and referencing' fee.

I am reluctant to part with such a massive amount of money when it means I'll probably be turned down anyway. I think its disgusting so Ive made the application without giving the money until they can guarantee my application.

Am I entitled to a breakdown of their fees? It seems a lot just to do half an hour of paperwork and a £15 Experian check?

Thanks in advance

BD

jjlandlord

No, you are not entitled to anything, in the same way as you are not entitled to a break down of the cost of your new TV.

What you can do, and should do, is enquire about what will be refunded if you are turned down.

bebewoo

Letting agents are not are not regulated and are not accountable to anybody so basically they can do what they want and charge whatever ripoff fees they like (but not in Scotland where is is more civilised).
It sounds very shady though that you should pay such a large amount just for the possibility of renting a property.

brutal_deluxe

Well I don't want to sound unfair if it is genuinely the case that it costs them that much to process the application. However in the letting advertisement it only mentions the fee, and my email inquiries have so far failed to establish any further details.

It just seems silly because surely the letting agency market is fairly competitive? I have not encountered such fees before and there are plenty of other properties of which the agents don't impose such fees in this way. How many of those looking to rent have 240 quid to chuck around? Not many I suspect.

G_M

bebewoo wrote: »

Letting agents are not are not regulated and are not accountable to anybody so basically they can do what they want and charge whatever ripoff fees they like

Since 1st October 2014, the Enterprise and Regulatory Reform Act 2013 S83 requires letting agents in England to sign up to one of 3 schemes:

* The Property Ombudsman
* Ombudsman Services Property
* Property Redress Scheme

Guest101

bebewoo wrote: »

Letting agents are not are not regulated and are not accountable to anybody so basically they can do what they want and charge whatever ripoff fees they like (but not in Scotland where is is more civilised).
It sounds very shady though that you should pay such a large amount just for the possibility of renting a property.

Actually they must be members of approved schemes so in theory there is some standardisation.

Guest101

brutal_deluxe wrote: »

Well I don't want to sound unfair if it is genuinely the case that it costs them that much to process the application. However in the letting advertisement it only mentions the fee, and my email inquiries have so far failed to establish any further details.

It just seems silly because surely the letting agency market is fairly competitive? I have not encountered such fees before and there are plenty of other properties of which the agents don't impose such fees in this way. How many of those looking to rent have 240 quid to chuck around? Not many I suspect.

You need to check what criteria they assess you on.

What I mean is, what is the minimum they are looking for? You should also check under what circumstances the money is refundable?

It doesnt cost them that much to process the application. - For example it doesnt cost Dominos £17.99 to make and deliver a pizza. It is the price, and if you dont like it, dont use them.

However, what you should not do is agree to a blanket referencing check. If their criteria is minimum £30,000 salary, and you dont make that, its a waste of £240. - So ask.

Jon_B_2

Letting agents seem to have as much authority to print money as the Bank of England. Unfortunately a fact of life.

stator

bebewoo wrote: »

It sounds very shady though that you should pay such a large amount just for the possibility of renting a property.

Pretty standard practice though. Most estate agents and landlords are very shady.

jjlandlord

stator wrote: »

Most estate agents and landlords are very shady.

:rotfl: :rotfl:

ognum

stator wrote: »

Pretty standard practice though. Most estate agents and landlords are very shady.

What a rediculous thing to say. Of course their are bad agents and LLs and tenants but not most by any means!