Letting agents face accusations of introducing new landlord charges following the implementation of the Renters’ Rights Act.
The Telegraph reports that some agencies now charge separately for services they previously included within their fees.
These include compliance work, financial statements and administration linked to rent increases.
The changes come as agents adapt to the additional workload created by the new regulatory regime.
At the same time, the reforms have affected established sources of agency income.
For example, the move away from fixed-term tenancies has reduced opportunities to earn traditional renewal fees and commissions.
According to The Telegraph, KFH now charges landlords £12 plus VAT for additional financial statements. Some agencies also reportedly charge up to £300 for compliance audits.
Agents have also introduced separate fees for completing paperwork when landlords increase rents.
The British Landlords Association has urged landlords to check their agency agreements carefully.
It acknowledged that the reforms have increased administration for agents. However, it warned against introducing unexpected charges.
A spokesman said: “Trying to recover increased operating costs through unexpected or questionable add-on fees risks damaging the trust between landlords and their agents.”
Chris Norris, of the National Residential Landlords Association, said some businesses could benefit from landlords’ compliance concerns.
“Lots of landlords at the moment are fairly concerned because there are quite big, chunky sanctions attached to getting some of this stuff wrong,” he told The Telegraph.
“They rely on their letting agent in many cases to make sure that they are compliant and they’re doing everything properly – and some will be cashing in on a lot of concern and confusion.”
Norris added that some landlords could regard the practice as “underhand”. Others may see additional fees as part of the cost of doing business.
The issue also appears to extend beyond isolated cases.
Nearly a quarter of landlords surveyed by Goodlord reported higher agency fees since the Renters’ Rights Act took effect.
However, agents have defended charging for additional work created by the reforms.
“Both agents and landlords are expected to do more paperwork to be compliant,” said Greg Tsuman, managing director of lettings at Martyn Gerrard. “If a landlord would like to outsource that, I think it’s perfectly reasonable that the agent charges appropriately.”
He added that landlords face the additional costs while their profit margins are already under pressure.
EYE has approached KFH for comment.
