Today’s Autumn Statement has imposed a ban on letting agent fees charged to tenants in England. The ban is to come in “as soon as possible”.
Crucial details are yet to be revealed in the Treasury’s small print, but at lunchtime the Chancellor, Philip Hammond, confirmed the ban, which marks a U-turn for the Government.
Prime minister Theresa May has previously voted against a ban on fees, while housing minister Gavin Barwell has called it a “bad idea”, saying that landlords would simply raise rents. The Government’s line has so far consistently been that it will keep under review the legal requirement for agents to display their fees openly both on their websites and in their offices.
The ban is necessary, Hammond told MPs, because the fees themselves are unregulated and have spiralled. “This is wrong,” said Hammond. “We will ban fees as soon as possible.”
He said that the Government was not afraid to intervene where there had been “market failure”.
The concern in the industry will be if the ban does not come in for several months, as this could stall the lettings industry with tenants deciding to delay their moves. According to the Government, the average fee charged to tenants is £337.
Earlier, ARLA reacted with outright dismay.
David Cox, ARLA’s managing director, said: “A ban on letting agent fees is a draconian measure and will have a profoundly negative impact on the rental market. It will be the fourth assault on the sector in just over a year, and do little to help cash-poor renters save enough to get on the housing ladder. This decision is a crowd-pleaser, which will not help renters in the long term.
“All of the implications need to be taken into account.
“Most letting agents do not profit from fees. Our research shows that the average fee charged by ARLA licensed agents is £202 per tenant, which we think is fair, reasonable and far from exploitative for the service tenants receive.
“These costs enable agents to carry out various critical checks on tenants before letting a property. If fees are banned, these costs will be passed on to landlords, who will need to recoup the costs elsewhere, inevitably through higher rents. The banning of fees will end up hurting the most, the very people the Government intends on helping the most.”
This morning, Lucy Morton, head of agency at JLL, said: “Charges made by letting agents to tenants at the commencement of their tenancies should have been levied only to cover reasonable administration and referencing costs. However, this has been abused by some agents who have been overcharging for their gain and to the detriment of tenants.
“Reasonable charges including referencing costs may now be charged to landlords which in turn may then be added to the annual rent. It is essential that agents do not cut corners and fail to carry out stringent referencing checks.”
Alan Ward, chairman of the Residential Landlords Association, said: “This will not help tenants, especially those who are ‘just managing’.
“Agents’ fees have to be paid by somebody. If any extra fees are passed on to landlords, tenants will end up paying them forever as market rents will increase.
“It would have been much better for the Government to have taken steps to improve the transparency of fees charged by agents by forcing them to publicise what the fees actually cover.”
Isobel Thomson, chief executive of the National Approved Lettings Scheme, this morning sent an email out to all NALS members describing the ban as “an easy political win but one which directly affects your business”.
She said NALS would continue to lobby on members’ behalf, and added: “We have been signposting this direction of travel for some time and said in September that we believed the sector has been sleep-walking into this decision”.
She said that the Fair Fees Forum, which NALS has only just set up and which has had one meeting, will remain in existence.
However, Rob Ellice, CEO of online agent easyProperty said he welcomed the ban which he said would create a “fairer playing field” for tenants. He added: “Any sensible agency won’t pass on these charges to landlords, due to competition in the sector, so we don’t foresee rent rises.
“Having the Government step in to abolish these fees is another example that the industry cannot self-regulate and be fair to consumers.” EasyProperty does not charge tenants, other than levy a £24.99 fee if there is a change on an AST agreement. Landlords are charged £49.99 if they request referencing.
In initial trading today, shares in Foxtons and Countrywide led the way downwards. By 9am, shares in all listed agents had fallen across the board by up to 10%, including Savills and Purplebricks.
EYE will bring you more detailed news as soon we can, and will update this story throughout the day.
However, the rental sector is not the only challenge facing the Chancellor, as new official statistics show that the sales market is in serious trouble – despite attempts to massage transaction figures.
See next story.
Why would rents go up in passing on costs to landlords? Surely rent is set by supply and demand, like anything else, not the cost of supply. If there is more juice in maximising a rental, the agent should already have taken advantage of this on their landlord’s behalf. The ultimate end effect of a fee ban on tenants would surely be to make a letting investment slightly less attractive to some landlords, thereby marginally reducing supply, which in turn, might have the effect of increasing rent. So the effect of this ban is indirect rather than direct. But far less than the SDLT burden!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
“Surely rent is set by supply and demand” Over time, yes, I think this is how it will work out, but the initial reaction will add to the rent which will set the new norm and then settle to supply and demand.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Solution: Just ask tenants for a full and up to date credit reference and employment reference. Let them do all the running around themselves..this could actually be a time saver for us poor , media fodder agents.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
See it before they view a house….even more time saved.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So they can forge it?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What are you nuts! I have 10 tenants chasing a property …. all are suspected to be bad tenants and they all know they have nothing to loose with referencing as they no longer pay. Just like lawyers no fee – no win. The country has a vast number of unscrupulous tenants that will take the chance. Who is going to pay the reference fee …. the landlord. Try giving them a bill for the 10 references as each one in turn fails the referencing. Before as soon as they knew they had to pay the fee …. bad tenants walked away, now you have the flood gates opened to abuse and a major, MAJOR problem created by a Liberal political driven attitude. Just Nuts. It is bad tenants that cause £K’s of pound loss to landlords …. the gates are wide open.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes…the landlord should pay. He’s asked you to do a job. Referencing is part of that job.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
And the landlord will recover the cost from where? ….. rent rise, just as the Welsh have done with their incensing regime.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Completely agree Woodentop – having a fee – no matter how small – cuts out chancers and only those who genuinely want to proceed (and believe they have a chance of succeeding) will put their money down. It brings efficiency to the process and cuts out time-wasters.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Then the answer lies in asking the tenant to contact your selected reference agency and getting them to submit their reference directly and pay for it themselves. The agency can raise their fees and give a ‘kick back’ for every referral we make to them.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
err that happens to be me. I do more checks than any reference company offers, they just go through the motions with no home visits and interview with tenants etc. I can credit rate them, job reference, previous landlord reference and ID search myself.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Landlords, like tenants, want to save money, Richard.
By passing on the costs of referencing and other fees onto the tenant, the letting agent effectively subtracts that amount from the landlord’s monthly rent.
So, if the landlord has a lifestyle he needs to maintain, or simply uses rent money to pay his bills, he now has less rental income to do so. His simplest option is to raise the rent so that the tenant makes up the difference that he now losing due to paying the fees (which were the tenant’s to begin with).
Yes, the move will be great for tenants – for about three months. They’ll pay higher rent but would have saved a few hundred quid on fees. But what happens ten months into the tenancy, or a year? They’re still paying extra rent but are now no longer making any saving by having not paid fees in the first place. Meanwhile, the landlord has now recouped the money he spent on fees and is actually profiting further.
The thing is, the public will love it. “Bleedin’ estate agents finally getting a taste of their own medicine!” In reality, the public are going to be out of pocket even more than they are now, and cash-poor tenants are footing the bill.
Stellar work from the government.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Oh, and don’t forget that many small-time landlords simply won’t be able to afford the costs they are now being forced to pay, so they’ll sell their rental property and suddenly the supply crisis is worsened.
Baffling.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
In short, (all) tenants AND (most) landlords are damaged by this move.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
That is the most realistic and sensible reply I’ve seen today – Spot on 🙂
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Welcome to Scotland , we have been unable to charge letting agent fee’s some years now.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
HI scotlandagent80
Thank you for that. Can you advise please? How has this ban impacted on your business? Have you passed on all costs to the landlord or just absorbed them? Has this genuinely resulted in increased rents?
Your shared experience would be most helpful.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hi Simon , the ban hasn’t impacted us too much as our fees to tenants were very little as there was a grey area with being able to charge fee’s in the first place. we have had to pass referencing costs onto the landlord. Rents have risen ever so slightly as landlords want to recouperate their costs.
We have had to improvise by generating other sources of income through in house inventories, legionella risk assessments and PAT tests.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Strangely my agents in Scotland always took the line that my rent was at the maximum I could achieve in the marketplace. As soon as the ban took place they increased the rent to my tenants on my behalf without even discussing with me.
As Scotlandagent has eluded to Landlords get hammered in Scotland. Statutory electrical tests as well as gas. Legionella, Landlord licensing. And heaven help you if your tenants leave. You can pretty much kiss the whole first months new rental goodbye in fees.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
we have had to pass referencing costs onto the landlord. Rents have risen ever so slightly as landlords want to recouperate their costs.
We have had to improvise by generating other sources of income through in house inventories, legionella risk assessments and PAT tests.
So what you are saying is what everyone has said, the cost still had to be recovered, rents went up and costs to landlords went up by hidden raise in costs.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Can Landlords ask tenants for a fee directly, if they are not using an agent? i.e. Is it only agency fees to tenants that are banned?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Wait and see but I’m under the impression that it is the tenant who is not to be charged fees?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hi, I am a private landlord in Scotland, with one property that I have ran for fourteen years. It is illegal, so far as I know, for me to charge my tenants anything at all. However, I would not let anyone into my property without a credit check. You have to jump through hoops to open a new bank account so why should someone who is, in effect, a complete stranger, be allowed into my property as my tenant without any check, especially since once they are in, they are afforded such strong protection, even when things go wrong? I have two tenants in my property right now: the woman has been there for coming up on ten years and was quite happy to be credit checked. Her partner moved in 2 1/2 years ago. I did not credit check her again (I did not see the point, as she is a model tenant) but did credit check her partner, who was quite happy to be credit checked. He is also a Landlord as well as being a tenant, so can see from both perspectives. When I have an applicant for a tenancy, I am upfront with them that they will need to be credit checked. I use Tenant Verify and have them complete the form, in paper format, complete with signatures. I then input the information into the website and THEY PAY THE FEE directly to the company ie it does not pass my hands in any way. Once the report comes back, it is given to the applicants, as it is theirs and I accept of decline them on the basis of the information contained therein. The applicants can use it for another application if need be and can also use it to cover the period that has been checked and then any future checks can be done from the end date on the check carried out. I don’t know how Scots Law would view this approach but Scots Law is not paying costs where tenants default or cause damage etc. it’s always prudent to check and it’s a good way of weeding out those that are not serious, unprofessional and who are mos likely to cause trouble. Hope this helps.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Thank you kindly, Benartylass80, that is a perfect reply.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is a victory for the likes of Shelter and Generation Rent who have lobbied far more effectively than the trade bodies representing the industry with an opposing view.
Yet another anti-landlord move the Govt. Stupid.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I agree AgencyInsider. Shelter and GR have, to their credit, been both vocal and loud about this. Not so much our own trade bodies….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
A short-sighted, knee-jerk decision that will have unwelcome and unintended consequences for tenants and the rental market. There are few clear positives.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Vote conservative to shoot yourself in the foot. Vote labour if you just fancy financial suicide. Vote liberal if you just don’t know what to do! If you just like your own voice become a politician.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
And they wonder why the likes of the looney’s Trump, Farage and Le Penn and the chap in the Netherlands are gathering support.
They are no better (far from it) but shows the public have had enough of sucsseive governments with little to no idea how to manage a country.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
As this new broke I got an email from the government regarding a petition that I signed res hops opening on boxing day. The response makes you laugh
The Government has responded to the petition you signed –
Government responded:
We do not believe it is for central Government to tell businesses how to run their business or how best to serve their customers. Therefore we are not proposing to ban shops from opening on Boxing Day.
The Importance of the Retail sector and its employees
The Government recognises the importance of retail to national and local economies
lets face it. This is and the last couple of headwinds to hit landlords is all about reducing the size of the PRS. in an aim to help the corporate build to rent sector for all those financial institutions investing Billions.
Generation rent. you have signed your own death warrant.
PS. how much is mortgage admin fees.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If this is to be the case, i find it amazing that this is one subject where the government follow the wishes of “the public”, where normally they couldnt give a stuff. Government yet again proving they do not understand the housing market that is the life blood to the economy.
And re why banning fees will put up rents…..if fees are passed on to the landlord across the board, all landlords will look to recoup their extra expenditure and thus across the board rents will go up. So the cost of all of the most if not all of the supply will go up, and this demand will continue as it is, as people looking to rent have very little if not no other options.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Morning all, oh…….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is just silly for the reasons above.
The government no longer build “council houses” so why are they looking to destroy the prs?
Where do they expect housing to come from.
We started our lettings arm this year. And to be honest this will probably make me shut it down.
What’s the point? We are not a charity!
The amount of time, rules, regulation, makes it very tight on margins as it is.
We charge a combined fee of circa £500 to landlord and tenant in setting up a let. That is far from excessive.
Maybe I will charge tenants for viewings, telephone call’s instead.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Absolutely! Various local councils housing departments have been practically begging us to help with providing property as they are unable to house their own people. The government want and need the support of the PRS, yet continue to dump on it.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The Government are clearing the way for corporates to take over the rental sector, while systematically putting out of business small agents and landlords.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Certainly will kill off anyone looking to start up a lettings business. I thought the government was supposed to encourage small business’s.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Perhaps landlords should look at airbnb to improve their yields as Government and shelter clearly do not want or value the investment landlords make in PROVIDING HOMES for those unable or not wanting to purchase their own.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Goodbye private rental sector.
Hello critical housing crisis.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Can I just take an off the wall look at this.
My kid wants a lego set for Christmas.
I don’t know the last time (if ever) you looked at the cost of lego.
Well it’s not cheap. The set little smile wants is £250.
So the cost of a legally binding, compliant tenancy with a reputable firm is the same cost of a child’s toy.
Can I ask the government to put a restriction on the costs of child’s toys so parents are better off at Christmas? Ffs!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
But Smile, my old chap, take the politicians view; Smile senior does not have to pay; Santa will be paying! Wishing Mr Smile, Mrs Smile and Little Smile are very merry Christmas and I hope Santa brings you a nice new Aston Martin or car of your choice! Whoops I have finally lost it perhaps I now qualify to become an MP?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Don’t get me wrong it’s my choice if he gets it (he will!)
But that’s the thing IT’S MY CHOICE. same as a tenant has a choice.
They can buy, rent, shared ownership.
If they rent they can go private or through an agency.
If they go through an agency they can shop round for fees.
Something stinks about the way the PRS are being treated. Something is wanted behind the scenes the government are not this stupid are they?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Not taking a pop just trying to lighten the Tone on this idiotic Government. Seasons best wishes.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Sorry I know, just fed up as being seen as a charity.
Be it sales or rents we have to bend over and take it with a smile and a thank you!
Seasons best to you!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What a shame they don’t ban upfront estate agency fees because that would surely spell the end for Purple Bricks and the listing agent / call centre agent brigade.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Interest point you make …
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It is going to happen and always was, adapt and move on. Rents may rise ever so slightly but supply and demand will set the rental figures. Fees to landlords will rise, landlords will eventually start looking at the competition. Time to roll the sleeves up, look at this as an opportunity, how hard has it been in the past to prise landlords from other agents. The fun begins !
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
But as rents rise they will look at and bring in rent control because of rising prices. Back to the eighties and the PRS will need to look elsewhere to survive at a reasonable return on their investment.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Labour have said they will bring in 3 year protected tenancies and rent capping … this is only the start. Seems the government have quickly forgotten what the public think of politicians. Mainstream politics is dead … not one political party is fit for purpose.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This has to be the fastest any government has ever reacted with a controversial decision in the history of democracy. Trust them to land it on our industry.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Perhaps this means that there’s a general election coming ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Why all the crying? Openrent charge £20 for referencing. They make a year end profit.
It’s true that they don’t carry out viewings but they only charge £50 to the landlord for their lettings service.
Do estate agents on here charge tenants for viewings? Or do they charge landlords for finding a tenant and include showing tenants around in that service?
Constant bashing of online estate agents but they don’t overcharge.
Agents need to look at their costs and streamline.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
And the service is shocking!
Pay peanuts get monkeys.
I could go out tomorrow and fill all my lettings roles with apprentices and pay them all £3.40 an hour and slash my wage bill by around 600%
I could be far more profitable but I want to offer a service. Strange concept from you on liners I know!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Except that Openrent don’t have a shocking service! They are very well respected online letting agents.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ha ha ha okay!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Openrent let 2,000 properties a month. They charge £20 for referencing. I’m just saying. Estate agents think it’s reasonable to charge £200 for referencing and associated costs.
I am surprised that you do not know your market because Openrent – the agent I mentioned – do not have a shocking service.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
We always keep an eye on Open Rent, Gumtree and the other rent-a-room and list what you like websites, simply because this is where tenants who are illegally subletting rooms – or sometimes entire properties, tend to advertise.
They know that these websites will not check whether it is actually the persons property to let or whether the person have mortgage consent, insurance consent, will register the deposit properly, undertake the statutory and the common sense safety checks, etc, etc.
Yes, they might only charge £ 20 for referencing but they have no vested interest in whether the applicant passes or fails or whether, despite good references they might still be unsuitable for a property. and for the £ 20 it is presumably the landlord who is doing the running around and still checking ID, right to rent, etc, etc ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Gumtree do not need to do any checks.
But are you seriously stating that Openrent are breaking all these rules and regulations? Good one 😉
Have you reported them yet? By your reckoning they’ll be closed down by the afternoon.
You’re the second person who’s bashed online estate agents in reply to me.
I’m not an online/hybrid agent but I do not get the constant bashing, especially where there is no foundation.
Smile Please has said that Openrent have shocking service – another comment I could not understand. It might be that he has never heard of them and made a blanket and blind statement but you can easily check before typing.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It was more the point that, like a lot in life, ‘you gets what you pay for’.
I could offer referencing for £ 20 (currently we charge £ 29+vat) but I wouldn’t be able to offer the service of having an office, going through the forms and answering questions, doing the right to rent checks, have client monies insurance cover, regular training, etc, etc and stay in business for that price.
You are picking one part of an increasingly long and complex process involved in establishing a tenancy correctly and taking it out of context, I.e. you say Open rent referencing = £ 20 and ‘Estate agents think it’s reasonable to charge £200 for referencing and associated costs’.
There are quite a number a number of ‘associated’ things which, surprise, surprise, have an ‘associated’ cost.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You are making the case that most with their heads screwed on understand, sadly many don’t understand what is involved in getting a good tenant and think it is just money grabbing agents (some are, which is unfortunate). It doesn’t alter the fact that a business has to put hours in and rightly be expected to cover costs and this governments draconian idea fly’s in the face of everything that is wrong with politics today.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Cheap shot by the Government – designed to suck in support from younger voters. Generation rent would gladly buy if deposits were relaxed back to 5 or 10%.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If average fees per tenant are 202 hardly surprising we are upsetting people. We are still not following the legislation change about disclosing fees because the stakeholders including ARLA were greedy when the CAP guidance was written. No where on any portal is there a way to compare the move in costs from property to property.
My fees are an average of £90 per tenant, if this happens some of you greedy agents have brought it on the rest of us. But seriously shame on ARLA and the lazy portals.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Anthony seems ludicrously low
How much do you charge a landlord?
What about inventory, lease, referencing all taken out of the £90?
What is your average fully managed fee and average let price?
You must be making the money up somewhere as £90 does not cover half the set up costs.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What next? Is this the same as making a seller pay for the buyers conveyancing costs? O, just remembered that the Government tried something similar to that called Home Information Packs and that did not end well?
So this Government now expect agents to administer deposits, right to reside, overseas landlords, money laundering. etc for free whilst they rake in SDLT for doing nothing?
Is it now time they used some of this tax to provide a free service for agents to check residency status of everyone after all their failures in border control allowed those non qualifying residents into the UK?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Just one minor point. THIS IS AN ATTACK ON LANDLORDS; agents will still charge someone for their services who might that be?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
no hidden fees for consumers.
no overcharging for a fairly simple service.
landlords instead of tenants taking more of the financial hit at the outset, encouraging them to retain tenants instead of flipping them.
call me old fashioned, but that seems like a great thing!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
No landlord wants to flip a tenant! What world do you live in?!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Landlords might not buy our local connells ‘competitor’ openly boasts of not caring who they put in a property, as sooner landlord kicks them out sooner they get to relet it!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
There was an article on here not so long ago about the practice. And as Basher says, it happens. Landlords are encouraged to do it by the unscrupulous.
I think this is one of those situations where if you’re charging a fair and appropriate fee then neither you or the landlord will be affected by this. If you are not, then you will see a reduction in your profit and the landlord will look around for those agencies that will provide the service without wanting to lump £40pm on to the rent.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I disagree.
Landlords are not encouraged to do it by the unscrupulous – some landlords do it because they are unscrupulous.
As for your comment that ‘if you’re charging a fair and appropriate fee then neither you or the landlord will be affected by this’, if the fee is removed, how can you not be affected by it ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Because if the fee is fair and appropriate then the actual true cost could be swallowed up without too much of a hit. It just becomes part of the cost of doing business.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Why would a landlord take the risk of turfing out a perfectly good tenant through an agency?
Void period, set up cost will far out weigh the extra £25 per month they might receive.
Stupidity of some people in incomprehensible!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Does anyone know why the chancellor’s staff fail to collect about £2,000,000,000 tax due on lettings income each year?
Does anyone know why the chancellor’s staff would describe a scheme to identify and collect the uncollected £2 billion each year as “of no interest”?
Does anyone know Mr Hammond or his staff don’t have the foggiest idea who ought to be completing SA105?
Get your own house in order Mr Hammond before you mess with ours!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
^ Exactly.
Agents charging landlords to find tenants and then charging tenants to find landlords.
Around here agents are charging tenants £300-450 in fees whilst charging landlords 11%+VAT on rents that are £500-600 per week. We don’t agree with charging unfair fees. We charge tenants at cost and charge landlords – who instructed us and who have a choice whether to use us – a fee.
Basically, we charge landlords a full service fee – they know what they are paying from the beginning and they are happy when we charge tenants at cost price for referencing. We win instructions this way.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
but in many parts of the UK the rents are £ 500-600 per month, so why are you being unreasonable to tenants by charging them that per week ?
Surely, if you feel that tenants should not pay fees, then the next step is to say that they should be paying the same rent for a 3 bedroom property in Kensington as a 3 bedroom property in Hull ?
Perhaps you are fortunate to make profits from charging landlords based on rents of £ 500-600 per week, whist your costs are presumably not dissimilar to agents in areas where properties are £ 500-600 per month ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yield!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Looks like I need to seriously consider tagging sales to our landlord service if tenant fees are banned.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Do it! Easy more lucrative!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
OK name an agent that will not put the rent up?
Juts hit the “like” button if you are now considering increasing rent.
Hit the “dislike” if you intend to work for nothing!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Can someone please explain to me why we actually pay the likes of UKALA and ARLA? When we need someone to stand up and speak on behalf of an industry, they do absolutely nothing.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Perhaps a Scottish agent can enlighten me how they get around thè scenario where a prospective tenant ‘reserves’ five different properties with five different agencies before proceeding with one of them? Who funds the four abortive reference charges? As I said yesterday, where were ARLA when we needed them.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Take a large holding deposit? It’s not classed as a fee..
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The tenant can pay for their own reference check. That seems sensible. They can read what the risks are, pay the fee and be happy. You just send them a link to the company you have partnered with in your back end.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Quick question.
Will a letting agent be able to take an initial/reservation deposit from a prospective tenant on the understanding that it will form part of the main deposit.
Can this be non-refundable if a tenant pulls out?
If not then any tenants that considered ‘non platinum’ or ‘difficult’ surely won’t be considered by an agent in the first place?
I take great satisfaction helping people in difficult circumstances but it looks those days may be gone.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You can but for which property (very messy), I suppose it will be in the wording when announced what you can or cannot do. As eltell sad: agent can enlighten me how they get around thè scenario where a prospective tenant ‘reserves’ five different properties with five different agencies before proceeding with one of them? Who funds the four abortive reference charges?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
A tenant can easily pay for their own reference checks. You just send them a link and they do the rest…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Can they pay for the fuel to go out and do the viewing with them too?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Do you not charge a landlord to find a tenant? Or is this not part of your service?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
We offer a range of different levels of service for Landlords.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Thanks for disliking my facts. Grrrr, facts.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This way agents can’t moan that they have to pay electricity and buy photocopier paper.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Who checks their ID, right to rent status and proof of residence….can’t do this with an online application. Openrent used to charge £75 for a reference…they are lost leader costs now. £15.50 + VAT is the base charge to most Agents for a full profile which is not carried out By Openrent. Check your insurance policy and see the disclaimers about referencing. If you go for cheap referencing to most probably have taken out cheap insurance.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
May be they get the tenants to do a lot of the chasing themselves. Nothing wrong with that if it’s working for them.
Sorry, I do not buy that Openrent are taking shortcuts. They probably do not make a profit on the checks but I doubt they make a loss. Overall though, they make a bottom line profit.
That says something about our industry. It says the better agents can live without charging tenant fees, often which are 100’s of pounds.
Tenants can pay for their own referencing.
Openrent £20 covers:
Comprehensive Reference
3-5 Working Days (on average)
Credit Check
Linked Address, Identity & Fraud Information
CCJs, Decrees, and other court information
Right to Rent Check and Advice
Affordability Rating
Previous Landlord Reference
Employers Reference
Rent Guarantee Insurance Eligible
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
We get charged £15.50 + VAT for a full profile reference as you describe and we must see the applicant in person, check and verify the original document. Our tenants are sent a link to complete online but we still have to do the donkey work and sign off. A strict requirement of my Professional Body’s member’s regulations.
Openrent are still showing £1.2 million + losses despite operating since 2011and only surviving through shareholder investment….so that tells a story
If the Westminster Government follow Scotland’s lead on no fees you will not be able to charge a tenant for a reference…in Scotland it is the Landlords cost
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ah so you just do the company reference checks. You don’t check the tenants yourself and rely purely on a reference company? Sorry that is not how it should be done, there are many things you need to do and how are you going to cover your costs?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Hows business at openrent??
Perhaps they can come and do the viewings for free on our behalf too?
I might just set up another business for reference checks and charge what i want??
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is what happens when you have an unregulated industry (compulsory membership of a redress scheme – laughable) with many agents charging exorbitant administrative fees combined with bad/unlawful practice. Its a toxic mix and in London its “the law of the jungle”. Some of our landlords have properties in a London Borough which has just introduced landlord licencing for ALL rental properties at £520.00 per property. Tell me how I can pass on our (very reasonable) admin fees to them? Richard Rawlings is right (the first comment after the article) – supply and demand will dictate rents, not who pays the admin fees. ARLA’s case that it put to government is completely flawed and its not surprising it was ignored.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Soooooooo.
I’m off out to apply for 10 different letting properties because I don’t have to financially commit in any way, shape or form. I’ll pick the one I want when I feel like it. I’ll let the other landlords down eventually. They can suck up the void period.
In seriousness. Currently agents charge a non-refundable fee for the wasted viewings / successful viewings / holding the property whilst the tenant applies / tenant advice / tenant referencing / inventory etc.
Will agents now ask for the refundable deposit up front, to hold the property and do the credit check, in order to sort the timewasters, to themselves and their clients, from committed parties?
Andddddd. Will it just be agents’ charges to tenants? Can a landlord ask for costs to be met by a tenant directly? If so, what’s to stop an agent creating an invoice from Landlord to tenant and collecting it on their behalf?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Of course the devil will be in the detail, but the BBC report says that the Chancellor will ‘seek’ to ban ‘upfront’ fees, which is different to banning all fees.
or am I clutching at straws trying to join some dots between this forecast announcement and the recent comments & voting by the Housing Minister, the Local Government Minister and the PM saying that there would not be an outright ban ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So David Cox at ARLA has just sent an email inviting everyone’s thoughts on this. I feel his inbox may be full and not with kind words of support! Useless bunch of twunts
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
its ARLA members like Foxtons and Townends which have caused half of this by charging fees for doing very little…
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Spot on!
The bigger agents in my area like Prospect and Romans have been charging either side of £1000 for some time now.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
In the ’80s we had a few bad apples in the business and they were responsible for giving the whoel industry and poor reputation.
As a consequence we have been given low professional esteem by outsiders and we were constantly being abused by the media.
Looks like we’re in for another bit of agency bashing because we want to protect our landlords from rogue tenants by doing our job and having to charge for referencing etc. Oh and almost all landlords are a millions miles from the “Rigsby” character and of course because so many are retired are once again in the governments cross hairs for a bit of “easy money”.
No wonder people like Trump and Farage get popular votes from disgruntled tax payers, the establishment is constantly on the take with no new ideas.
I may dislike T & F but right now I am pretty cheesed of with the establishment too.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Market forces will sort it all out and as usual a kneejerk reaction on all fronts from agents up and down the country. I have a landlord who attracts tenants by never taking a deposit which helps many good tenants who find it difficult to raise. Instead he amortises what would be the deposit over 12 months and adds it to the monthly rent. All we will do is to add the credt check costs divided over 12 months and add to the rent. Plenty of tenants to choose from. he takes the view that most tenats if you look after them stay at least 12 months so quids in. I accept not all areas have tenants that stay as long but landlords must continue to look after their properties, look after their tenants and we as agents must look after all!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So you have done exactly what most are saying … put up the rent. I have landlords that do not take deposits, most do and are they pleased they did! If there weren’t bad tenants it would be so simple.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It’s in an agents duty of care to find the landlord a good tenant and that should include showing a tenant around and then reference checking that tenant – so that they can satisfy that landlord and tell them that they have done their job and now a fee is due. That is good service.
If you feel that showing a tenant around to different properties to earn the landlords fee is not part of your remit and you want to charge a tenant for viewings by way of hiding the charge through tenant fees then there is something wrong with the way you do business.
If you feel that you will be reference checking a lot of tenants and will be wasting money then you can ask the tenant to pay for their own checks – you only need to send them a link.
As I have said Openrent charge tenants £20 and they make a profit.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Will the tenants do their own Right to Rent checks too?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Would you charge a landlord to find a tenant and not do the right to rent check and be able to claim that you have deserved this fee? Have you shown a duty of care to your landlord?
My point is, you are charging the landlord to find a tenant. Why would you find a tenant who would cause the landlord a problem down the line? Charge a fee and earn that fee.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes the Landlord can choose to absorb the cost or pass it on. All this effects their decision of whether they want to be a landlord in the first place, therefore whether we have a PRS and how many homeless people this saves or causes.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The landlord is ultimately liable unless there is a clause stating otherwise in the terms of business …if the landlord wants the checks done then they will need to pay to have themselves protected from prosecutions
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
£20 does not cover the time and checks required for duty of care. period., You can argue it as much as you like but it is impossible.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If you are on a contract with a Landlord how can you pass on costs…there will be queues behind you to take over the management of the property if you try. If you lose £300 in Tenants fees with a 10% management fee you would require to put up rent £500/mth to recover this loss from rent increases. Work it out for yourself and get real. Agents will pick up most of the bill….for those who undercut competitors management fees and put costs on to Tenants……..their tactics have come home to roost.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I think agents will move away from percentages and just charge a set amount i.e. £100 pcm
rents can then easily varied to take into account the loss of tenant fees.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
When the detail of any changes in legislation are clear, we need to get together as an industry and figure out how we respond. Customers always come first and in order to deliver a great service our businesses need to be profitable. My experience of being a letting agent and working with well over 1000 letting agents across the UK, including Scotland gives me hope and confidence. We have faced challenge after challenge, this is potentially a tough one, but not beyond us. The irony should this legislation go through, is that tenants will not save a penny, in fact they will probably pay more.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I assume you could insists a tenant pays a third party direct i,e, if you want to rent a property then you need X, Y and Z
no tenant fees direct to the agent but you need to use a referencing company on our selected panel, which you pay direct. the same would apply to the inventory company etc
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Would you like me and every other agent in the land to tell you how many so called good tenants were referenced by reference companies and were not good! They are purely a paper exercise, some are so cheap …. well pay peanuts and you will get a monkey. What this whole debacle is over, some agents over charge (most to my knowledge are corporates) and we suffer the fall out.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
>>London R90
“As I have said Openrent charge tenants £20 and they make a profit.”
You say that OpenRent make a profit? I have just checked their latest return at Companies House and it states a loss of £1.214m for the y/e 2015?
Where are you seeing a a stated profit please?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Not from reference fees. Absurd to claim it makes a profit, it won’t cover the overheads of the building and employee salaries for a start per reference. Just nonsense.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Reading some of the bleeding liberals comments on here anyone would think the word “Profit” was dirty.
We are a business not a charity!!!!!!!
Who cares if it cost 20 quid to reference a tenant, here is an eye opener for you costs the referencing company about 3 quid! – Why are they allowed a profit and not the agents.
Well done shelter, well done generation rent well done Hammond – Careful what you wish for!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
SP you nearly hit the nail on the head. Lettings is a business and recognised as such by government and HMRC. However political doctrine is that landlords are money grabbing so and so’s, How dare they make money and to cap it off agents get a cut too. Dreadful behaviour, lets hammer them. For some, lettings is a dirty word and yet without us the country would be filled with people sleeping on park benches (sorry, they are disappearing to). If anything until they get the housing crisis in order, they should be supporting us with reasonable steps and not listening to the looney far left. Talk about biting the hand that feeds.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I always thought the Tories were pro free-market and pro business. They are just trying to gain some of the left vote with this populist policy. It is the tenant that wants to let the property so it should be the tenant that pays for the process.
The whole problem has been caused by the shortage of housing in London and the South East, which has affected supply massively, meaning letting agents can charge desperate tenants inflated letting fees. The problem is in these areas the rest of the country once again has to suffer the policy change.
In the North West for example tenant fees reflect reasonable costs to the agent, they have to because if we charged too much the tenants would choose other properties. When is any government going to realise that the whole country isn’t London and the South East? Which incidentally the reason why up North we voted to leave the EU, one in the eye for the London elite.
It is exactly the same with the minimum wage, why when it costs substantially more to live in London and the South East is the minimum wage not reflective of this fact?
So the upcoming costs to letting agents are, ban on letting fees, payment by employer for every employee in to the new enforced government pension scheme, an increase in the minimum wage that rises far in excess of inflation. Only the very strongest will survive!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
When you get on a train you buy a ticket….. its not free
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Agree with the last comments from TheAgent48.
In reality there is likely to be a consolidation of businesses within the industry and only those businesses with scale will survive.
As in any industry; there will always be new cost pressures, reductions in volume, new challenges and new competition. The lettings industry face all four at present.
Perhaps this is the time for business owners to consider joint ventures or the merging of their respective businesses and in doing so will achieve the lowering of their underlying “costs per let”.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Last year our receipts from tenant fees equated to the wage costs for one member of staff. Take the tenant fees from the equation and……….quite simple really, we have to lose a member of staff! Still as far as government are concerned, the cost of paying that member of staff a bit of benefit, paying their rent and council tax because I’m no longer paying it will get lost in the welfare bill and so doesn’t matter; let them live with the rest of the great unwashed/scroungers!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
OWW
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Oh watch the poor little piggies squeal! You know that “admin” fees and all the other irrelevant charges agents make are bogus. This is fantastic and the landlords will simply pass on referencing fees which is what we’re really talking about. £25 or so per tenant. Big deal. Increased competition between physical and online sites is nothing but good for the market.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Before you guffaw, are you sure that you are prepared for the laws of unintended consequences?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
As many have commented – as well as the average enduser knowing little of ARLA & its cronies – ARLA have been completely drowned by lobby groups on this matter (and other matters of import)…
Agents can recover some losses by cutting their (largely worthless) ARLA subs and the associated costs with membership…..In reality the consumer is looking for Ombudsman membership and perhaps CMP if they understand it / their exposure is significant.
The govt’s latest assault on the PRS which according to recent articles is propping up the social sector in terms of the fact councils have spent £3.5bn on Temporary Accommodation within the PRS is an own-goal on the tax payer.
If private rents increase (whether due to this assault or the other assaults), the bill for Temporary Accommodation will have to increase commensurately or why would private landlords let to Councils as Temporary Accommodation..
As Temporary Accommodation Rents are a combination of HRA (largely paid by LHA from central govt (tax payers)) or General Fund (local council tax payers) the Tax Payer is going to pay at both ends 1) in increased rental costs for ‘generation rent’ 2) tax on the latter by landlords at the new rates from this April, 3) increased taxation (local and national) or borrowing to pay for public sector use of privately rented property as Temporary Accommodation……..
This is what happens when successive governments are staffed with people without experience in what they are legislating for or against….
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Would the ARLA cronies be those other industry figures that sit on HMRC panels? There is a noticeable absence of comment from them today.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
agree on that one
waste of time…still lining their pockets with deposit compliance money like the NLA
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If they ban the fee, as rental properties are on high demand, agents will take the fee under the table I think. Even now tenants are willing to pay a higher fee then asked just to get the property! Such a no-brainer to ban the fees!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Mathan did you mean to say “agents will take the fee under the table”?
Really ?
I hope your prediction doesn’t come true or it will be a bleak outlook for the whole industry
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
http://www.thedailymash.co.uk/news/business/this-is-communism-say-letting-agents-20161123117735
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Just to brandish some realistic figures for all the “little piggies” comments. I run a reasonably sized independent Estate & Letting Agent in the North West, I have done a quick calculation on the various fees we charge. Tenant fees came in at just short of £26k with 120 lettings in the year so an average charge to the tenant of £215. Our dare I mention the word profit was £27k or 9% of turnover. So a simple economic calculation on the charge to the tenant ie 9% of £215 = £19.35 so we make a profit per tenant of £19.35 is this unreasonable for the service we provide to the tenant?
Just to give you an idea of the profits generated for Rightmove a well known property portal which could be considered a comparable sector. Turnover £192m Pre-Tax Profit £137m which equates to 71.3% profit margin. The equivalent of £153.29 profit per tenant!!!
Perhaps the government rather than attacking small business should look to a “monopoly” tax to prevent internet companies making excessive profits on their customers.
I am sure this would be the sentiment of most honest hard working Estate and Letting Agents.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Okay, so I am to charge the Landlord for the processing of the tenant…understandable I suppose.
Just one question…where do I send my invoices for all of the Right to Reside checks I am conducting on behalf of Border Force ?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
OK read the press release on EYE and Government web site. It relates to letting agents fees to tenants. One big loophole. Landlord charges the tenant. Agent charges landlord an admin fee. End of.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
in scotland it refers to letting agent and landlord, so assume similar here
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Yes Mr Tenant, you can secure this 700k property for free. I am going to work for FREE for you because i do not provide a service for you.
I am happy to send a member of staff to meet you at my cost, maybe even a second and third viewing. I will meet you at the property if you decide to move in and provide you with an inventory to help protect your deposit which I have also registered free of charge. I will also assist you with utility accounts and spend time demonstrating how to work the central heating and security alarm.
Please feel free to phone me as many times as you please throughout the tenancy and speak to my staff who earn £10 an hour for FREE.
I would also love to provide a FREE vacating service when you will want your deposit returning based upon the strength of my service level/inventory provided cost FREE.
FOOLS.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So, I really do charge £100 admin per tenant. I cannot charge this upfront anymore and the landlord does not wish to pay it. So I agree with the landlord that I can increase the rent by £25 PCM for 12 months to cover the cost?
Result: The landlord pays no more and the tenant/s Instead of paying £100 for a single and £200 for a couple now pay £300!
So actually, in this scenario the poor tenant may now find themselves worse off.
Genius!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
I own a number of properties which I rent out in London, all in good areas.
-I advertise for free on various sites. If it’s slow, I’ll use Gumtree, HouseShop, Urban, MakeurMove etc.
-I can get passports and other document from tenants with one email
-I get bank statements and employment contracts, which don’t take long to check for 20 tenants
-if in doubt I pay about £25 for credit checks
That’s not worth £200 per tenant!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Sorry to burst your bubble but that isn’t referencing and all it entails and other work that is required. I suspect you do not have office premises and staff and pensions to provide. Overheads have to be covered and just like trying to get bad tenants out, they have now made it easier for them to get in. It isn’t a problem with good tenants, as I said before one that slips through causes £K’s of loss for landlords. I suppose motor manufacturers will now be required to give out insurance. This is a draconian answer to an issue which frankly is only over a few over charging in London?
What they should have done, if anything is set a fee cap. I waiting for someone with the backing to ask for a judicial review as one could argue not only is this not democratic, it is anti-business and breach of EU Regulations, thankfully we haven’t left yet!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Maybe this is where the likes of ARLA should champion their membership and the industry they say they represent. They shouldn’t need to be asked?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If only ARLA were allowed more power!!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Traditional agents will just develop centralised, low cost services to do the above. No one can continue to charge silly fees for a low-value added service.
Don’t forget, you’re making 6-10% on the letting already! That is ample for what you do.
The market will continue to move online until excessive charges are reduced and the balance is found.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
You lost me on 6-10% to cover my overheads and come out with a penny profit! In rural areas you would need over 200 properties to just break even (not a hope in the city) and this brings us to the situation of anyone in the future wanting to start a business in lettings = won’t happen.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
This is precisely why you’re in trouble!! Of course new agencies will set up: online, and some with subcontracted local specialists to do viewings/admin as an added value package.
The traditional industry is greedy (not all, but many) and inefficient. Which is why all the action is (i) at the top end (ii) with new entrants (iii) RM and Zoopla
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Read it and weep!!!
http://estateagentnetworking.co.uk/blog/2016/11/25/letting-agents-why-shelter-are-quoting-out-of-date-drivel-to-back-up-their-argument/
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register