Cost of Tenancy Agreement/who pays?

GMac14

Looking to move into a bigger rental property for a period of perhaps 12 to 18 months until we have saved up a deposit to buy.

Pretty amazed at the difference in costings from Letting Agents. Deal direct with Landlord and its 4 week bond, 4 weeks rent up front and £20 for Credit Check.

Agents range from 4 weeks bond/4 weeks rent and £50 (covering references/tenancy agreement/credit check etc), another is flat fee of £220 plus bond and rent and then Bridgefords have quoted 4 weeks rent, 4 weeks bond, £300 for tenancy agreement and £75 per adult for referencing costs. For £750 per month rental they are asking for £1950 up front, which seems like a lot.

But, when I checked on their website, now part of Countrywide Group, Tenants guide to services and fees list £300 charge for tenancy agreement, yet on their Landlords guide to service and costs there is also a charge here of £300 for drafting tenancy agreement.

Is it legal to charge both Landlord and Tenant for providing a Tenancy agreement?

Other agents dont charge this to tenants so I assume Landlord will pay?

Comms69

Yes. Why would it not be legal, you're voluntarily paying for a service?


It's like saying kwik-fit will do my tyre check for free, but ABC Motors charges £20 is that legal?!

GMac14

If thats the case why are all agents not charging the same way then? Why would I go with an agent who will charge me £300 for a tenancy agreement when I can go with another that will provide one for £50?

Perhaps the is it legal was badly worded from my side, but seems wrong to charge both tenant and Landlord excessive amount for same/similar/standard document?

Comms69

GMac14 wrote: »

If thats the case why are all agents not charging the same way then? Why would I go with an agent who will charge me £300 for a tenancy agreement when I can go with another that will provide one for £50? - because they have different properties on offer?.....

Perhaps the is it legal was badly worded from my side, but seems wrong to charge both tenant and Landlord excessive amount for same/similar/standard document?

So don't use them....

Slithery

GMac14 wrote: »

Why would I go with an agent who will charge me £300 for a tenancy agreement when I can go with another that will provide one for £50?

Because the same property isn't available from both agents.

Agents fees are one of the things you need to take into account when choosing a property to rent.

davidmcn

Comms69 wrote: »

Why would it not be legal

Because you might be used to more civilised jurisdictions where charging the tenant is illegal?

Comms69

davidmcn wrote: »

Because you might be used to more civilised jurisdictions where charging the tenant is illegal?

Without being funny, clearly that wasn't the expectation of the OP.


Im not defending the fees, but as the law currently stands....

GMac14

Thanks Slithery for the non condescending response. Perhaps a stupid question is some other peoples eyes, but I thought the idea of the forum was to come here seeking answers and clarification.

Still seems unethical for an agent to charge both sides for same agreement. The houses the have are not superior to their competition, the service they provide is no different so just seems cheeky to be charging more than anyone else. Still, if people out there dont know any different and pay through the nose, then thats why they do it. Makes the choice of the two houses we are viewing a whole lot easier!

AvocadosBeforeMortgages

This is one of many reasons why I now rent direct from the LL whenever possible. OpenRent is a great site for finding such properties

GMac14

Just read the full details of costs, the agent charging both sides for agreement also charges £75 per person for refs, £50 per person for admin fee, 6 weeks bond rather than 4 and a check in fee of £72.

Budget for Rental is £800 or so, North West UK, 3 bed semi. The expensive agent offering a house for £750 per month and the other for £650 per month. But the fees mean total cost of £2,497 compared to £1350 (4 week bond, 4 week rent, £50 for admin/refs/agreement). Doesn't even matter that I thought they were being out of order charging both landlord and tenants for agreement, there is nothing to pick between the houses and nothing that justifies an additional £1147 extra between one agent and another.

Pixie5740

GMac14 wrote: »

Thanks Slithery for the non condescending response. Perhaps a stupid question is some other peoples eyes, but I thought the idea of the forum was to come here seeking answers and clarification.

Still seems unethical for an agent to charge both sides for same agreement. The houses the have are not superior to their competition, the service they provide is no different so just seems cheeky to be charging more than anyone else. Still, if people out there dont know any different and pay through the nose, then thats why they do it. Makes the choice of the two houses we are viewing a whole lot easier!

The letting agent isn't charging both the tenant and landlord for the tenancy agreement. The letting agent is charging the tenant for drawing up the agreement and the landlord for finding the tenant. They aren't allowed to charge each party for the same thing.

Furthermore, the letting agent would not be providing you with a service. You would have no contract with the letting agent, their contract is with the landlord.