Generation Rent has renewed its call for a ban on letting agent fees charged to tenants.
It has done so after one tenant was told he would be charged £800 in upfront fees – for a £650 a month flat.
On top of the £800 charged by Fulfords, in Exeter, he would have to pay a deposit and a month’s rent, bringing total upfront costs to £2,300.
Rory Gray said that he could not believe the list of “nonsense” charges. These included a tenancy fee of £360, admin fee of £90, referencing fee of £60 and check-in fee of £90.
Gray complained, and the agent – part of Countrywide – reduced the fees to £650 but only if he paid at once.
Gray told the Guardian: “When the agency told me the amount, I was astonished
“I thought the agent must have made a mistake and mixed it up with the monthly rent or the deposit.
“When I saw their breakdown of costs they were complete nonsense – £300 for a tenancy agreement which I was told was a standard agreement they use for all tenants. So they simply print off their standard agreement and charge £300. A check-in fee of £72 to hand over the keys. I feel conned.”
Betsy Dillner of Generation Rent said: “Recent legislation means agents have to be transparent about their fees, but that doesn’t stop them forcing tenants to pay through the nose if they really want a property. It’s time that fees for tenants were banned.”
A Countrywide spokesperson defended the fees, saying: “Our tenancy agreements are reviewed regularly to ensure they are up-to-date with industry guidelines, so tenants can feel confident the agreement they are entering into is sound and gives them the security of the tenure they need.
“We are transparent about the tenant fees we charge and in line with ASA guidelines our fees are advertised and available online.”
Letting agent fees would almost certainly have been banned in England – as they already are in Scotland – if there had been a different general election result.
However, it looks as though they will remain firmly on the agenda.
The Guardian story is here
Comments (17)
Countrywide exist to deliver shareholder value and for them the more they can fleece out of tenants the better. I cannot see how the landlords agent reviewing tenancy agreement templates can be chargeable to the tenant? Sorry Countrywide spokesman you do not always display your fees http://www.palmersnell.co.uk/landlords/
no wonder the industry gets a bad name
I suspect (but I don’t know) that, unlike some agents, Countrywide are now displaying their fees as it is a legal requirement. They are not the only ones I’ve seen with shocking fees.
As for your other comment, I can only say that it’s extremely annoying to find a property you like, only to realise that it’s being marketed by an agent on your ‘black list’ – for whatever reason that might be.
Those charges are ridiculous and shameful. I get more than most that it’s a free market but that’s ripping off consumers because there’s no legislation to protect against it.
But do they have to rent THAT property.
I agree that they are ridiculous fees but nobody is making them rent it.
Say what you like (or dislike) about Countrywide they are open with their fees unlike some.
Well it’s not like a customer is after a bag of salt and vinegar crisps and is able to go to any number of shops to purchase them.
The agent has a monopoly over that property and can create a like it or lump it situation for any customer. As you put it SP – Do they HAVE to rent that property?!
If you find a property you like that ticks all the boxes, you’re a bit hamstrung if you then find it’s on with an agent who charges exorbitant fees.
By advertising the fees they are complying with the rules, but they are a long way from adhering to the spirit of the rules. In an industry that struggles with PR and perception from Joe Public, this is not going to help.
I think Countrywide’s fees are sky high but no-one forces anyone to rent through them because its a free market.
Here’s a parallel: If I want a second hand Ford Focus I’ve got lots of choice. I can pay full whack at a franchised dealership, pay less at an independent dealer, and less still from a private seller.
What I can’t do is say that I want the specific car that the franchised dealer is selling but pay a private seller’s price for it.
Likewise our friend at Generation Rent can choose to rent a property via Countrywide, or through an independent agent, or from a private landlord. But if he really wants the one from Countrywide he’s got to pay their prices.
Perfect summation
Oh come on you lot, we would all charge those fee’s if we thought we would get away with it.
Ever gone on a 1% fee valuation (against that one local agent that charges it flat rate) and come out of it with 1.75%? Same thing
4 dislikes!? I feel like I’ve finally arrived 😛
So I assume you are all the 1% agents then? Saving your vendors as much money as possible, do you ask your solicitors and FS to lower their fees for them as well or maybe the local council to lower their local search fees or perhaps you ask their mortgage lender to scrap the reservation fee they charge.
Countrywide are lunatics with those charges, such greed merely forces further regulation. Generation Rent are lunatics as well if they think agents can act for free or if they think costs will not be passed down to tenants in the long term. Tenants should boycott countrywide and use the smaller independents.
Agree with previous posters. Countrywide and others like them are harming our industry with their rip-off fees. Shame on them. BUT, Gen Rent: the answer is NOT to ban fees to tenants outright, it is to cap those fees.
It will be a slow process but hopefully ‘fee transparency’ will get not just tenants but landlords too, to place their business appropriately.
And it doesn’t stop there. According to our local Countrywide website a tenancy extension will cost £125, change of sharer £300, express check in £100 and an astonishing £60 shoild you want to move in on a Saturday!
Sheer greed which can only harm our industry and encourage government intervention.
Yep, those are standard Countrywide fees!! I couldn’t agree more with the ten at or to you IHS which is why I left shortly after the company I worked for was bought out by them… There is no justification for the fees at all, which is why their spokesman was struggling in fact, in my experience the service you are paying more for is less because everything is farmed out all over the place so nobody seems to have any ownership!! But maybe that’s just my personal experience…. 🙂
Couldn’t agree more i did exactly the same thing , they also do the same for landlords i am surprised they have any clients at all??
The Countrywide ‘spokesman’ has struggled to justify the tenancy fee – how often do they need to check their tenancy agreement! We charge a fee of £200 for up to two tenants which covers referencing, immigration checks, tenancy agreements and inventory check ins.
It is Agents such as Countrywide who will force the Government to bring in legislation and then we will all lose out.
???? just curious what was the other £200, that list of fees only comes to £600.