Renting Document Charges

TypeR

My letting agent has just sent me my contract renewal. At the bottom of the letter it says

"Please note that a payment of £50 (£58.75) is due to cover the cost of the extension documents"

My question is can I challenge them (or should I challenge them) over this? I'm thinking about the wording here "....is due to cover the cost" do 30 pages of tenancy agreement REALLY warrant a fee of £58.75? It hardly represents the "cost" accurately in my opinion?

I know I might sound a bit "Bank charge-ish" here, but £58 seems a hell of alot of money for what I'm holding in my hand?

Thanks all

babyt_2

Hello,

Not sure whether you CAN challenge this but you SHOULD. My family and I are moving for second time in six months into rented accomodation and we are shocked with adminstration/reference fees charged by estate agents. Luckily our current property is with a private landlord. But now we have to move again its near impossible with fees, deposits and rent!

Most estate agents will charge around 200 pound for getting references and admin charges. Like you say is this really right? How much can it cost to print off contracts and ring up two people. Just like bank charges surely we should fight this. Good luck!

Doozergirl

Don't renew the contract like that and it costs nothing. If you simply let it roll over it becomes a 'periodic tenancy' where both you and the landlord are able to give each other the appropriate notice.

If you need the absolute certainty of a further 6/12 month term, then pay it.

But there is a choice. No one is forcing you

clutton_2

"" How much can it cost to print off contracts and ring up two people. ""

no one should be expected to work for nothing - a good letting agent does a lot more than just print off a contract, and ring up two people.

For the initial tenancy application there is a fair bit of work to do - in this day and age, you cannot just "Ring up people" and get information, you have to get a Data Protection disclaimer signed by the prospective tenant, you need to FAX this to prospective referees before they will talk to you - some wont talk, they need things in writing (banks are one example). You will need to fill out on-line applications for electoral roll, credit checks, rent guarantee insurance - then phone ex-landlord, employer, personal references and talk to them. You need to see bank statements from the prospective tenant, Proof of address, and N .I. and I.D etc etc. All this takes time.

i do agree that £50+ vat seems a lot for a renewal - but it DOES take time and paper and ink and postage to do a renewal. BUT you are also buying the security of a further 6 months tenancy - if you stay on a periodic you can be given 2 months notice at any time.

subjecttocontract

£50 + vat is the standard charge for a new letting agreement.