Renting Administrative Costs

Sooz33

Hello everyone


Apologies if this subject has already been dealt with, but can anyone tell me if there are any rules and regulations in force or proposed for regulating the costs of administrative fees payable when applying for a rental property. The fees seem very disparate and some are, quite frankly, ludicrous. I have seen fees ranging from £100 to £420 for a property of more or less the same rental value. I am sure I have read somewhere that it only costs £50 per applicant to do a credit and reference check so where does the extra £320 come in? I seriously don't think it can cost that much to draw up a tenancy agreement? This seems so unfair …

anselld

Yes there are ... in Scotland.
Elsewhere they can be avoided by looking at properties with online agents like OpenRent who limit fees.

The cost of full referencing is £20-£25 per applicant so the rest is agent's profit.

stoopy

It is annoying isn't it, we paid the fees for a rental property and after a year, staying in the same property, had to pay the fees again to convert the one year fixed tenancy to a rolling tenancy. really unfair! But I don't know the answer to your question.

Smi1er

stoopy wrote: »

It is annoying isn't it, we paid the fees for a rental property and after a year, staying in the same property, had to pay the fees again to convert the one year fixed tenancy to a rolling tenancy.

No you didn't. Have to pay the fees to convert into a rolling agreement I mean. It converts to a rolling tenancy if you do nothing. The rest is the agent trying to make extra £££'s

theartfullodger

anselld wrote: »

Yes there are ... in Scotland.....................

Where such fees have been illegal for years....


Come on Engerland, catch up!

Sooz33

Thanks to everyone who replied.
Maybe us lot in England should start a petition to get these fees made illegal like they are in Scotland?

Nobbie1967

Sooz33 wrote: »

Thanks to everyone who replied.
Maybe us lot in England should start a petition to get these fees made illegal like they are in Scotland?

I think there is legislation in the pipeline🙂

System

Sooz33 wrote: »

Thanks to everyone who replied.
Maybe us lot in England should start a petition to get these fees made illegal like they are in Scotland?

They will be as of April 2019

Dorian1958

Then everyone can expect higher rents when the LA charges the landlord instead, who ultimately passes the cost increase to the tenant. These "services" all have to be paid for somehow, but at least in Scotland the process is more transparent, and there is no scope for unscrupulous ripping off of potential tenants by LA's.

wesleyad

Dorian1958 wrote: »

Then everyone can expect higher rents when the LA charges the landlord instead, who ultimately passes the cost increase to the tenant. These "services" all have to be paid for somehow, but at least in Scotland the process is more transparent, and there is no scope for unscrupulous ripping off of potential tenants by LA's.

I's be interested to see how it pans out, but I can't see rents rising (much), more I can see agents lowering overheads as they become more competitive (LLs will now have to become more selective on agents as their fees will be higher).

Reason for rent prices not changing much is there are lots on LLs who don't use agents (like myself), who would suddenly become much cheaper. Also rental value is set by what the market can afford, not by the LL.

When scotland passed the law, there was no change in rental prices (rent increased less than inflation)

cherryblossomzel

Simonr66 wrote: »

They will be as of April 2019

Interestingly, when I last received my letter from my letting agent to renew my contract, they specifically pointed out that in my original tenancy agreement I agreed to pay their annual charge for renewal. i assume they've been getting some kick back from tenants knowing that the legislation is coming, or maybe thinking it's already here, and querying the charge.

I don't have a problem with paying reasonable charges, but some agents just take the Mick. I had to pay somewhere around £400-500 when I moved in 4 years ago, and an annual fee of £112 to renew. I refuse to believe that that is their actual cost for these services, so they're making a nice little profit from me, on top of whatever they charge the landlord.