Letting agency advice (Extortion)

Guest101

djpleasure wrote: »

In a free market you can charge up to what people will pay? what rubbish, it is not what ""People will pay" you are forcing the hand. A letting Agent should look after its Landlords and Tenants. Quoting Free Market does not make it right and it is exactly this kind of abuse that will end the so called free market and force regulation, the losers will be the Landlords and Agents, how the tables will turn.

Petition signed and shared on FB, cannot wait for the day that Letting Agencies and Landlords are Regulated. Your day will come, mark my words.

A letting agent doesnt have tenants...

jjlandlord

djpleasure wrote: »

In a free market you can charge up to what people will pay? what rubbish

:rotfl: :T

martindow wrote: »

This to me is a definition of a failed market.

Not at all. All businesses price that way: What customers will pay, not what it costs then. That's how they make money!

The market balances itself because at first it creates huge margins, which attract more competition thereby reducing margins through lower prices.

When people call for more regulations for this market they are calling for less competition by creating barriers to entry.
However, at the end of the day the real issue is simply the lack of available properties in some areas.

Anyway, you guys are making a storm in a teacup.

Renewal fees are not exploitative and agents do not really have excessive power to impose them.
As said, a tenant does not have to renew, and thus does not have to pay or can negotiate terms to get better value out of what they pay. That's a working market to me.

nirajn123

I understand how a free market works and prefer it over any other. But if you read 'market failure' this isn't how it should work - you can charge up to what people will pay for a service of value to customer, but when customer gets nothing (of value) in return for a money he does not want to pay, it is extortion.

If it was a free market EA would not be running scared of online portals or launching their own. I am an optimist though and hope they will have their 'Uber' moment soon to restore some balance.

Sites like Martin's exists because there are times when consumer is denied the choice/left without options to walk away in a supposedly free market. So you think one should just shut up when they can't walk away?

jjlandlord

nirajn123 wrote: »

I understand how a free market works and prefer it over any other. But if you read 'market failure' this isn't how it should work - you can charge up to what people will pay for a service of value to customer, but when customer gets nothing (of value) in return for a money he does not want to pay, it is extortion.

Why would anyone pay for nothing?

Here a tenant pays to get a new fixed term tenancy. If they think that this has no value to them or not enough value then they can decline or negotiate.

You are confusing the free market with the aggressive sale practices that agents often use. I.e. they often tell the tenant that he must pay or leave, which is not the case.

nirajn123 wrote: »

If it was a free market EA would not be running scared of online portals or launching their own. I am an optimist though and hope they will have their 'Uber' moment soon to restore some balance.

In fact, I don't think that you understand what 'free market' means.

nirajn123 wrote: »

Sites like Martin's exists because there are times when consumer is denied the choice/left without options to walk away in a supposedly free market. So you think one should just shut up when they can't walk away?

It's been repeated several times that they have the choice and can walk away!

Guest101

nirajn123 wrote: »

I understand how a free market works and prefer it over any other. But if you read 'market failure' this isn't how it should work - you can charge up to what people will pay for a service of value to customer, but when customer gets nothing (of value) in return for a money he does not want to pay, it is extortion. - But the customer gets a home. Which many would put substantial value on.

If it was a free market EA would not be running scared of online portals or launching their own. I am an optimist though and hope they will have their 'Uber' moment soon to restore some balance. - They are capitalising on new technology.

Sites like Martin's exists because there are times when consumer is denied the choice/left without options to walk away in a supposedly free market. So you think one should just shut up when they can't walk away?

So the letting agent forced you to pay money. Was this with menaces. Kidnap. Gun to the head? - did you report this to the police??

Conrad

People like Russel Brand say they want all workers to be sufficiently paid, the agent might be an ideal employer paying staff a decent living wage, surely something to celebrate.......

nirajn123

Why would anyone pay for nothing?

.

Exactly, there is absolutely no need for this extension nonsense, he can stay on under rolling contract (periodic tenancy) as OP wants to stay as a long term tenant, but that would mean estate agents lose their cashflow if all his tenants did that. I know from experience that estate agents where demand is high insist that you create a new 'renewal' paperwork which is of no benefit to tenant at all.

It's been repeated several times that they have the choice and can walk away!

- Did you even read his post? Where do you suppose he goes with no money to spend on moving home.

Guest101

nirajn123 wrote: »

.

Exactly, there is absolutely no need for this extension nonsense, he can stay on under rolling contract (periodic tenancy) as OP wants to stay as a long term tenant, but that would mean estate agents lose their cashflow if all his tenants did that. I know from experience that estate agents where demand is high insist that you create a new 'renewal' paperwork which is of no benefit to tenant at all.

- Did you even read his post? Where do you suppose he goes with no money to spend on moving home.

- It is useful, it ensures the tenant has security for the fixed term duration.

jjlandlord

nirajn123 wrote: »

I know from experience that estate agents where demand is high insist that you create a new 'renewal' paperwork which is of no benefit to tenant at all.

As said, they are using aggressive sales methods, but the tenant can still decline.

nirajn123 wrote: »

- Did you even read his post? Where do you suppose he goes with no money to spend on moving home.

Why would he have to move?

nirajn123

But the customer gets a home. Which many would put substantial value on.

He is already living there - and wants to stay as a long term tenant, why does he need to pay 'renewal' when the law allows you to move to a periodic tenancy?

They are capitalising on new technology.

yes for their own benefit, while trying to prevent what can be easily democratised - but as I said I am optimist, there will come a time when that will change with right set of tools at customers disposal. That, is when I will call a free market at play.

Can someone remind me, isn't this site dedicated to consumer power?