Landlord wants £234 for reference check

G_M

NaughtiusMaximus wrote: »

I know this is heading off topic (and into grumpy old git mode) but when I used to rent in the 90s and early 00s, landlords managed to do all of that without charging any extra fees over and above rent, it was 1 month's rent in advance plus the same again as a deposit and that's it, none of this 'arrangement fee' nonsense which has since become standard practice.

Quite.


When I buy a TV from John Lewis (or anywhere) I don' have o pay extra for drawing up the contract. Or the warranty (unless I choose an extended one). It's an overhead of the business.


My local restaurant does not have a fee for printing the menu.


The sector needs regulating.

saajan_12

G_M wrote: »

Quite.


When I buy a TV from John Lewis (or anywhere) I don' have o pay extra for drawing up the contract. Or the warranty (unless I choose an extended one). It's an overhead of the business.


My local restaurant does not have a fee for printing the menu.


The sector needs regulating.

To balance the argument,
- ticket sellers charge booking fees (eg theatres / transport / events).
- online shops charge delivery fees
- airlines charge to check in / pick a seat / take luggage

Yes I know some of those are optional, but some people need them eg if you don't have the means to check in online or equivalently if you don't have the means to support the rent alone and need an additional guarantor reference. The alternative to the fee is doing something yourself eg travelling to a physical shop rather than delivery fee, so you're still spending money above the listed price of the item.

There is added time involved in dealing with the admin of checking the reference report, discussing contract terms, completing inventory etc. If they don't charge a specific fee for this, then the profit would jsut be built into the rent.. while thats easier to compare, it also means you're paying the higher rate for the duration of your tenancy, rather than just one off for a changeover. Longer term tenants get penalised while creating the least work for the LL, compared to someone who moves every 6 months.

I'd rather be charged a one off fee than pay for it through rent every year..

Rosemary7391

Saajan, if the fee is profit for LL, doesn't that provide an incentive for them to get new tenants for extra profit from fees/reference at every excuse/new contracts all the time? I'd rather rent from a LL with a vested interest in me staying!

DontBringBertie

saajan_12 wrote: »

To balance the argument,
- ticket sellers charge booking fees (eg theatres / transport / events).
- online shops charge delivery fees
- airlines charge to check in / pick a seat / take luggage

Yes I know some of those are optional, but some people need them eg if you don't have the means to check in online or equivalently if you don't have the means to support the rent alone and need an additional guarantor reference. The alternative to the fee is doing something yourself eg travelling to a physical shop rather than delivery fee, so you're still spending money above the listed price of the item.

There is added time involved in dealing with the admin of checking the reference report, discussing contract terms, completing inventory etc. If they don't charge a specific fee for this, then the profit would jsut be built into the rent.. while thats easier to compare, it also means you're paying the higher rate for the duration of your tenancy, rather than just one off for a changeover. Longer term tenants get penalised while creating the least work for the LL, compared to someone who moves every 6 months.

I'd rather be charged a one off fee than pay for it through rent every year..

But delivery and booking fees are minimal ie £5 max. Not £500 ‘admin fee’ for showing you round a flag for 5 minutes, sending out a template contract with the dates changed then disappearing as soon as the contract is signed. Then miraculously reappearing when there’s a renewal fee to be had.

According to you, has a landlord or estate agent ever done anything wrong?

NaughtiusMaximus

DontBringBertie wrote: »

But delivery and booking fees are minimal ie £5 max. Not £500 ‘admin fee’ for showing you round a flag for 5 minutes, sending out a template contract with the dates changed then disappearing as soon as the contract is signed. Then miraculously reappearing when there’s a renewal fee to be had.

According to you, has a landlord or estate agent ever done anything wrong?

Another argument for regulation to change this practice is it's bad for the economy as a whole as it reduces the mobility of labour. Being faced with a hefty one off non refundable fee every time you move is a strong disincentive to move house if you're on a low income.