Letting agent fees for optional referencing

jr2025

Can letting agents ask for tons of documents but add that, for a fee, they'll do the referencing for you? Or is that just circumventing the ban an referencing fees?

anselld

No they can’t (assuming you are asking as a tenant).   And anyway, surely they would still need the same set of documents.

FlorayG

Are you the tenant or the landlord? Fees depend on which you are

Murphybear

Agencies often use a professional referencing company which charge fees 

anselld

Murphybear said:

Agencies often use a professional referencing company which charge fees 

... which are payable by the Landlord, not the Tenant.

jr2025

anselld said:

No they can’t (assuming you are asking as a tenant).   And anyway, surely they would still need the same set of documents.

Yes, we're the tenants. Our landlord is selling and is going to evict us. We've done nothing wrong and would like to stay here with a new landlord if possible. I'm assuming we're being evicted so he can get best price for the property.

I read that one of the requirements for a valid section 21 notice is that no prohibited payments were taken. I do remember the letting agents asking for reams of documents but saying they could do all the work for us for a fee. Given what looked to be a long and daunting job, and we were anxious to get it done, I just paid them the fee.

I don't really want to give the landlord a hard time but he's having no mercy on us. If I can defend this until the renter's rights bill becomes law then hopefully we're safe.

anselld

jr2025 said:

anselld said:

No they can’t (assuming you are asking as a tenant).   And anyway, surely they would still need the same set of documents.

I read that one of the requirements for a valid section 21 notice is that no prohibited payments were taken. I do remember the letting agents asking for reams of documents but saying they could do all the work for us for a fee. Given what looked to be a long and daunting job, and we were anxious to get it done, I just paid them the fee.

If the fee was taken after 1 June 2019 then it is a potential defence.

jr2025 said:

anselld said:

No they can’t (assuming you are asking as a tenant).   And anyway, surely they would still need the same set of documents.

I don't really want to give the landlord a hard time but he's having no mercy on us. If I can defend this until the renter's rights bill becomes law then hopefully we're safe.

You are not safe in the longer term.  The new bill will still allow evictions on the grounds the Landlord wants to sell although the notice period may be longer.

Have you explained to the L that you would like to stay and that he may consider selling to an investor rather than needing to vacate?  It depends on the property and the area but there may not be much of a price difference.

Mr.Generous

jr2025 said:

anselld said:

No they can’t (assuming you are asking as a tenant).   And anyway, surely they would still need the same set of documents.

Yes, we're the tenants. Our landlord is selling and is going to evict us. We've done nothing wrong and would like to stay here with a new landlord if possible. I'm assuming we're being evicted so he can get best price for the property.

It's a big assumption that the landlord will sell to another landlord. If they do, the usual first step is a rent hike I'm afraid. Unless the yield (return on investment) is particularly good the new buyer has just had to fork out a load of money on fee's and taxes, and the old landlord wanted out at the current rent.

The existing property owner wants the best price - selling without vacant possession is a different prospect. How does your current rent compare to the market value?

jr2025

anselld said:

You are not safe in the longer term.  The new bill will still allow evictions on the grounds the Landlord wants to sell although the notice period may be longer.

Drat, yes, four month from what I can see on the bill.

Have you explained to the L that you would like to stay and that he may consider selling to an investor rather than needing to vacate?  It depends on the property and the area but there may not be much of a price difference.

Yes, I did, fingers crossed that a new landlord makes an acceptable offer. I know interested parties but the asking price is a bit too high.

Turns out our deposit wasn't protected in time either, could that affect a section 8 when the bill becomes law?

jr2025

Mr.Generous said:

The existing property owner wants the best price - selling without vacant possession is a different prospect. How does your current rent compare to the market value?

Rent is in line with current market rates.