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Letter agent membership scheme - Love your postcode

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swoody1362
swoody1362 Posts: 3 Newbie
in House buying, renting & selling
Hi,

I'm due to view a rental property that's dealt with by Love Your Postcode in Birmingham. I've asked about the fees ahead of the viewing and they told me that I had to join their 'membership scheme' for a whopping £1,200 - £1,400. This is non-refundable. They said as part of my membership I'd get guaranteed repairs (which surely I would get anyway) and first choice of another property (which I would not want / need). Their website says they do not take deposits for properties and instead you seen to pay this non-refundable membership fee, although on the phone they told me there was a deposit payable.

It all sounds a bit of a con to me. Does anyone else have experience of these types of membership schemes?

Many thanks,

Simon
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  • G_M
    G_M Posts: 51,977 Forumite
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    Never heard of them but.......:eek:
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    That is a new low for letting agents.

    I wonder if this membership model is a way of trying to circumvent legislation regarding letting agency fees that could be introduced in England.
  • swoody1362
    swoody1362 Posts: 3 Newbie
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    This is the blurb on their website:

    LYP Club Membership

    Love Your Postcode does not take custodial deposits for any of its properties. Instead it provides a premium membership contract for all working class applicants that are seeking great quality homes throughout the country. The membership allows for a family to have the first choice over any available property within the group and is transferable from property to property because it moves with you. It!!!8217;s a very unique concept founded by Mr Singh of WLYP in 2009 and currently has over 1000 live members across the UK. Tenants: welcome to a world where you can never lose a deposit, ever again. Our club membership has many benefits for both the landlords and tenants. Landlords: imagine hassle free property management and a world where you don!!!8217;t need to argue for your right to apply costs against a deposit. We have a no quibble policy to under write every transaction subject to the property being returned back to us on management. Approved by Trading Standards in 2011.


    'Never lose a deposit again' but instead lose money for an entirely benefit free membership scheme seems to summarise it.
  • System
    System Posts: 178,102 Community Admin
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    Pixie5740 wrote: »
    That is a new low for letting agents.

    No need to tar all agents with a big brush, there are some very good ones who do look after their tenants. That's one example of a somewhat dodgy scheme by a what appears to be a less than savoury agent.
  • KittenChops
    KittenChops Posts: 328 Forumite
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    swoody1362 wrote: »
    This is the blurb on their website:

    LYP Club Membership

    Love Your Postcode does not take custodial deposits for any of its properties. Instead it provides a premium membership contract for all working class applicants that are seeking great quality homes throughout the country. The membership allows for a family to have the first choice over any available property within the group and is transferable from property to property because it moves with you. It!!!8217;s a very unique concept founded by Mr Singh of WLYP in 2009 and currently has over 1000 live members across the UK. Tenants: welcome to a world where you can never lose a deposit, ever again. Our club membership has many benefits for both the landlords and tenants. Landlords: imagine hassle free property management and a world where you don!!!8217;t need to argue for your right to apply costs against a deposit. We have a no quibble policy to under write every transaction subject to the property being returned back to us on management. Approved by Trading Standards in 2011.


    'Never lose a deposit again' but instead lose money for an entirely benefit free membership scheme seems to summarise it.



    (my bolding)


    Er... what??
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    swoody1362 wrote: »
    This is the blurb on their website:

    LYP Club Membership

    Love Your Postcode does not take custodial deposits for any of its properties. Instead it provides a premium membership contract for all working class applicants that are seeking great quality homes throughout the country. The membership allows for a family to have the first choice over any available property within the group and is transferable from property to property because it moves with you. It!!!8217;s a very unique concept founded by Mr Singh of WLYP in 2009 and currently has over 1000 live members across the UK. Tenants: welcome to a world where you can never lose a deposit, ever again. Our club membership has many benefits for both the landlords and tenants. Landlords: imagine hassle free property management and a world where you don!!!8217;t need to argue for your right to apply costs against a deposit. We have a no quibble policy to under write every transaction subject to the property being returned back to us on management. Approved by Trading Standards in 2011.


    'Never lose a deposit again' but instead lose money for an entirely benefit free membership scheme seems to summarise it.

    I can't find them on the Buy With Confidence website: https://www.buywithconfidence.gov.uk/

    Maybe Trading Standards no longer approve of Love Your Postcode. ;)
  • mrginge
    mrginge Posts: 4,843 Forumite
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    Are this the lot that fine you for not doing the washing up?
  • madvicker
    madvicker Posts: 157 Forumite
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    edited 4 July 2018 at 12:49PM
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    I don't know whether to; laugh, cry, or rage. That is genuinely the silliest and downright cheeky concept I have ever read about. And their list of possible fees on their website are ridiculous.

    Holy s***!

    I would run a mile, and find somewhere else. I would much rather pay £1400 to a deposit than some jumped up 'membership scheme' purporting to do the things a landlord is legally responsible for doing anyways. Not to mention all their other abstract charges....

    Oh - and there is a guaranteed 5% annual increase in rent, + a £95 renewal charge.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Simonr66 wrote: »

    No need to tar all agents with a big brush, there are some very good ones who do look after their tenants. That's one example of a somewhat dodgy scheme by a what appears to be a less than savoury agent.

    "Their tenants." Do letting agents have their own tenants?
  • mrginge
    mrginge Posts: 4,843 Forumite
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    Same principle as this kind of thing?

    https://www.theguardian.com/money/2018/may/14/lifestyle-club-london-members-fees-rights
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