Agency letting fees - What's really going on

cts_casemod

Hi guys,

Yesterday went to see a few properties and decided to go ahead and pay deposit for one of them.

I was asked for a card payment on site. The agent did this over the phone, providing me with a receipt and two forms to fill and hand in at the agency.

Later we've been to the agency to hand the forms which were asked details for referencing. Pretty standard stuff I guessed, so filled that in and was told to wait 48h.

Today I got a phone call saying the landlord was fine with us taking a 6 month tenancy to start with, but peding a pass on the referencing checks. In order for this to go forward, we would need to pay the remaining balance of £1470 for one month rent, one month deposit and agency fees and that the payment I've done yesterday was only meant to take the property of the market for 48h until the full payment was received.

Basically what they want is to get full payment (deposit+fees+1st mont rent) upfront which is pending referencing. But they will only do referencing after payment has gone trough otherwise they'll put the property back on the market. I think this makes the holding of the initial £250 deposit unlawful?

The house still has tenants living there so what I seen may not exactly be what I get and the agency clearly says that all terms are given in good faith and form no contract.

Can this be a scam? Can I ask for a refund on the payment because they refuse to complete the referencing or hold the property for more than 48h?

dgtazzman

Smells very fishy, you'd normally not be expected to pay the deposit and first month's rent till you sign the contract, until that point either party can pull out for whatever reason they like, so handing over that kind of money seems ludicrous to me.

I'd probably pull out and ask for my 250 quid back as they withheld information from you when paying the initial deposit. If they refuse, as you paid by card, contact your card provider and try to get it back from them based on them withholding information, thus you not being aware of the correct terms under which the money was paid.

Does the agent have business premises? Have you been there? Will they provide a receipt for the payment with their full details on it? Is the money refundable if the tenancy agreement doesn't get signed?

In essence, is there any reason to doubt is fully legit...

cts_casemod

I spoke with them and they said that I signed something consenting with the £250 payment and what not. Then the agent told me there would be renewal fees, the agency says no... Lots of red flags!

I paid by card (debit) so no way I could get deposit back.

They have physical premises, in fact more than one. This is the house and the agency website:

http://www.archerbassett.co.uk/25756342_Eastern-Green-Coventry.html

Basically they want me to sign the contract, yes. But its a void contract, pending all checks and the earliest I could move in is the 27th. Its just a way to evade their claims that if the landlord doesn't accept us the deposit is refunded as they can later claim I either didn't pay in full or failed something and they can do this to a number of people (In fact they mentioned they would accept holding deposits for two or three people and would refund those the landlord didn't accept) so we can see where this is all going...

harrys_dad

Having checked the fees on their website the only upfront fees appear under the heading "before you move in", rather than "before contract agreed". There is no indication of the practice you are describing. Their LL fees also seem high to me, but that is not your problem.

Personally I wouldn't deal with them but it is a hard market for tenants and agencies seem to be able to do what they like.

Pixie5740

From Shelter's website:

Some letting agents ask you to pay a holding deposit to reserve a particular property while they check references and prepare the tenancy agreement. By paying a holding deposit you are committing to take up the tenancy so that it is not let to someone else.

Letting agents must provide you with information about holding deposits. This must be clear, accurate and not misleading.

The letting agent should make clear if:

the holding deposit will be returned once you move in
it will later be used as part of your tenancy deposit or rent in advance
any costs or fees will be taken out of the holding deposit
there are any reasons that could mean the deposit won't be refunded
Ask for written details of refund rules for a holding deposit. Don't pay unless you are given written confirmation about how a holding deposit will be used.

However, the link to the LA's website that your have provided does not mention anything about holding deposits and I think that by law LA now have to list all their fees on their websites and branches.

harrys_dad

I have reported the post immediately above for advertising without permission. it contributes nothing to the actual issue in the thread..

dodger1

harrys_dad wrote: »

I have reported the post immediately above for advertising without permission. it contributes nothing to the actual issue in the thread..

I'd say Pixie's post is very relevant.

Pixie5740

Thanks dodger1 but harrys dad was referring to a spam post that has now thankfully gone.

cts_casemod

Hi,

Just been to the agency. What I was explained was that until I pay the balance in full the property will keep being advertised and offered to other tenants ( All having to pay £250 to go trough this process) even tough the form gives no indication about this other than the the holding fee will be lost if payment is not made within 7 days.

On the other hand if I pay the full balance today the contract is signed and its legally binding for the duration of the tenancy with starting date of 27th August, but this again is voided if the references (work or previous landlord) don't come through. I called my previous landlord which hasn't yet received nothing.

Is this normal practice?

Also... I see a lot of guys on the forums saying the fees are exaggerated, which they are. But pretty much all where I've been I see the same amount give or take £100. Am I missing someyhing or just a local thing?

harrys_dad

dodger1 wrote: »

I'd say Pixie's post is very relevant.

I agree, the one I reported has been removed! I did not quote it so that when it was removed it couldn't still be read.

Guest101

cts_casemod wrote: »

Hi,

Just been to the agency. What I was explained was that until I pay the balance in full the property will keep being advertised and offered to other tenants ( All having to pay £250 to go trough this process) even tough the form gives no indication about this other than the the holding fee will be lost if payment is not made within 7 days.

On the other hand if I pay the full balance today the contract is signed and its legally binding for the duration of the tenancy with starting date of 27th August, but this again is voided if the references (work or previous landlord) don't come through. I called my previous landlord which hasn't yet received nothing.

Is this normal practice?

Also... I see a lot of guys on the forums saying the fees are exaggerated, which they are. But pretty much all where I've been I see the same amount give or take £100. Am I missing someyhing or just a local thing?

today the contract is signed and its legally binding for the duration of the tenancy with starting date of 27th August, but this again is voided if the references (work or previous landlord) don't come through

Contracts dont get voided by one party. If you want the house, sign the contract. Take a copy away. And tell the agent to swivel.