£25+VAT+Card Fee for reference

jrelder

Hi,

I have given my notice to move out of my current flat and also have started the process to complete the application for a new flat with a different letting agent.

Now the current letting agent does not manage my property, all I do is pay the monthly rent to them. If I have any issues with the property I have to contact the landlady directly as I have done on many occasions over my 2 years here.

However the new letting agent insists that the reference needs to come from the previous letting agent rather than the landlady as that is who the money goes to.

So suddenly today I got a call from the company that manages the reference checks for the new letting agent to say that the previous agent is charging me £25+VAT+ a card surcharge (£2 debit, 3% credit). Now this is the first I have heard of the previous company charging for a reference as it was not written in any of the documentation I signed when moving into the property and is not in the tenancy agreement. Details of the check out charges etc were all covered (and I paid when moving in) but nothing about a reference.

I have a few questions about this:

1. Surely I should be able to provide a reference diectly from the landlady? As she is the one who manages the property, it's just the payment goes to townends first. She is also notified any time the rent is delayed or not - so she has full knowledge of the financials.

2. Is it right that there is a VAT charge for a reference?

3. Am I entitled to walk into the office of the letting agent and pay by cash if I so wish in order to avoid the card surcharge? Should the current agent provide this as an option or are they allowed to request card only? Should they accept bank transfer as that is how I pay my rent?

Thanks in advance,
James

Guest101

jrelder wrote: »

Hi,

I have given my notice to move out of my current flat and also have started the process to complete the application for a new flat with a different letting agent.

Now the current letting agent does not manage my property, all I do is pay the monthly rent to them. If I have any issues with the property I have to contact the landlady directly as I have done on many occasions over my 2 years here. - Your LL must be crazy, paying them 5-10% just to collect the rent.

However the new letting agent insists that the reference needs to come from the previous letting agent rather than the landlady as that is who the money goes to. - They're wrong(ish) your contract is with your LL, not agent.

So suddenly today I got a call from the company that manages the reference checks for the new letting agent to say that the previous agent is charging me £25+VAT+ a card surcharge (£2 debit, 3% credit). - That's unfortunate Now this is the first I have heard of the previous company charging for a reference as it was not written in any of the documentation I signed when moving into the property and is not in the tenancy agreement. Details of the check out charges etc were all covered (and I paid when moving in) but nothing about a reference.

I have a few questions about this:

1. Surely I should be able to provide a reference diectly from the landlady? - agreed. As she is the one who manages the property, it's just the payment goes to townends first. She is also notified any time the rent is delayed or not - so she has full knowledge of the financials.

2. Is it right that there is a VAT charge for a reference? - Possibly.

3. Am I entitled to walk into the office of the letting agent and pay by cash if I so wish in order to avoid the card surcharge? - yes/no/maybe Should the current agent provide this as an option or are they allowed to request card only? Should they accept bank transfer as that is how I pay my rent?

Thanks in advance,
James

The simple fact is, no-one has to provide a reference, so they can charge. However your LL's reference should be sufficient.

aneary

It the agency is VAT registered they will have to charge VAT as it's a service they provided which is VATable. The £5 VAT goes to HMRC though.

jrelder

Thanks for your replies. After reading other threads I do realise they are entitled to charge for the service so I have stopped quibbling on that.

For the VAT I do know the company has to pay VAT and it goes to the HMRC, I just wasn't sure if this was a taxable service that was all.

But as you have said I do feel that the landlady's reference should be suitable. So I might try and push that as I don't like the idea of paying for something which in my opinion the agent isn't in the situation to provide. I.e the agent has no idea how I have been as a tenant, all they can see is I paid the rent every month on time, but he landlady can see this and more. They will both give me a glowing reference I know this, so it's not a case of me trying to get a better reference.

As for the payment method, it appears that maybe no one will be able to give a definitive answer. But I feel I should at least have the option to pay by bank transfer as this is how I pay my rent. I just don't like being pushed to pay by card and pay extra fees if I don't have to...

Thanks for your replies!
I'm still waiting to speak to the agent to see what they say about it.

TBagpuss

The difficulty is that if the new agents decide they will only accept a reference from an agent, you can't force them to accept one from the landlord.

sparky130a

TBagpuss wrote: »

The difficulty is that if the new agents decide they will only accept a reference from an agent, you can't force them to accept one from the landlord.

Very true.

But i'd be more bothered a letting agent was informing me another agent was billing me!

Shocking business etiquette.

saajan_12

There are no rules about it. The new LL/agent want a reference from the previous agent; indeed you are free to decline or argue something else *should* be sufficient but then they might decline to rent to you.

They might prefer a reference from an agent as a reference on their letter headed paper or rent history as part of their business records are easier to verify as legitimate. Your old LL is essentially a person, you could get your mate to write you a reference and the new agent would have to work harder to check they were party to your previous tenancy. You may also have developed a friendship with a LL whereas this is less likely with a business (old agent). Not saying any of these would enable you to get anything but a factual reference, but the new agent doesnt' know that.