Aunt Agatha Posted December 23, 2013 Share Posted December 23, 2013 I've just been browsing some houses to rent (in Northumberland and North Tyneside) and just about all of them say "fees apply" including one who "only" charges a £350 admin fee!! These fees weren't in place when I lived in London 10 years ago and we don't have them here. Are they a standard thing now? Is it a national curse or just a NE thing? I'm in a bit outraged! Link to comment Share on other sites More sharing options...
Celt Down Under Posted December 23, 2013 Share Posted December 23, 2013 I've just been browsing some houses to rent (in Northumberland and North Tyneside) and just about all of them say "fees apply" including one who "only" charges a £350 admin fee!! These fees weren't in place when I lived in London 10 years ago and we don't have them here. Are they a standard thing now? Is it a national curse or just a NE thing? I'm in a bit outraged! We were browsing a large real estate company in the UK, for a long term holiday rental, as in 3 to 6 months, and noticed the same thing. No way will I pay an admin fee, so will look at private advertisers instead. Link to comment Share on other sites More sharing options...
kimsdu Posted December 23, 2013 Share Posted December 23, 2013 The fees are in place in most of UK rental agencys i believe it covers the credit check which is about 200 quid... You will only pay once so try to look at a rental agency with the most properties on their books as you will have to pay the fee with each one you use... Which is a big pain we had them in Cornwall but it was only 250 there i think... Link to comment Share on other sites More sharing options...
Aunt Agatha Posted December 23, 2013 Author Share Posted December 23, 2013 I think it's beepin' disgusting! Money for old rope but they have us over a barrel. That's a good tip re choosing an agent with lots of properties. Some of them want the credit check money (Aussie agents seem to manage without it!) plus £50 per person and several had a very generous flat fee of £350. Robbers! Link to comment Share on other sites More sharing options...
Victoriagal Posted December 23, 2013 Share Posted December 23, 2013 Interesting - we've been told we don't have a credit history so not sure how they can do a credit check. Wonder if we can save the money by telling them not to waste their time as we will have to pay the rent upfront? Link to comment Share on other sites More sharing options...
Victoriagal Posted December 23, 2013 Share Posted December 23, 2013 We were browsing a large real estate company in the UK, for a long term holiday rental, as in 3 to 6 months, and noticed the same thing. No way will I pay an admin fee, so will look at private advertisers instead. Where are you looking for private advertisers? Is there a recommended web site they use? Trade me in New Zealand was great for finding private rentals but haven't really found anything similar in the UK. Any info greatly appreciated. Link to comment Share on other sites More sharing options...
kmmr Posted December 23, 2013 Share Posted December 23, 2013 There has been a recent change in UK rules on renting, and letting agents are obliged to include all costs in the advertising. The fees were always there, but generally you didn't find out about them until you had already paid a holding deposit etc. I think fees have skyrocketed recently, as a nice sneaky way of increasing income for the agents. Remember the landlord is probably paying massive fees too. Don't forget to check if you have to then pay all the fees again a year later to 'roll' the contract, or other ongoing fees. You can avoid them by going onto a rolling monthly contract (statutory periodic tenancy), but you will face a fight with the letting agents over this. And, again, the landlord will pay for this too! Private LL's advertise on Gumtree (but that is full of scams) and also on the mainstream sites. Look for online agents, such as housenetwork, UPad and a few others. They change a small fee which enables private landlords to get their properties onto the main portals. Link to comment Share on other sites More sharing options...
Aunt Agatha Posted December 24, 2013 Author Share Posted December 24, 2013 Good point Victoriagal, I'll definitely try the "haven't got a credit history so no point searching" angle since we'll also have to pay rent up front I suspect. Thanks for the info kmmr, I really object to being ripped off like that but hopefully we can buy in a year or two and leave renting behind us. Link to comment Share on other sites More sharing options...
fensaddler Posted December 24, 2013 Share Posted December 24, 2013 Where are you looking for private advertisers? Is there a recommended web site they use? Trade me in New Zealand was great for finding private rentals but haven't really found anything similar in the UK. Any info greatly appreciated. The landlord will be paying 10% of the their rent straight to the managing agent. They will also be paying additional fees for finding new tenants (so the process of finding tenants is an earner on both ends). Wherever you are, real estate is a money for old rope business... Link to comment Share on other sites More sharing options...
noworriesmate Posted December 24, 2013 Share Posted December 24, 2013 The landlord will be paying 10% of the their rent straight to the managing agent. They will also be paying additional fees for finding new tenants (so the process of finding tenants is an earner on both ends). Wherever you are, real estate is a money for old rope business... I wish that were true - In Scotland where most of my business is based, agents are not allowed to charge any fees to tenants except rent, while in England it really depends where you are and how much competition there is. We can only charge a relatively modest fee to the tenants in Essex but we do not charge the landlords for the same work. The legislation is getting tighter and tighter and we are regularly inspected by the police to check the properties we manage are not being used for cultivation drugs, by HMRC to make sure that overseas landlords are paying the correct tax (we got fined 10k for a client who did not tell us they had split up with their partner and one of them had moved overseas), by the council to make sure that we have registered all the houses with multiple tenants etc etc. All of this we do without being able to charge any fees for this additional time consuming work. All of our staff have to be constantly retrained with the new legislation. I am not trying to make you feel sorry for us but just pointing out that as always there is two sides to every story - my guess is also that not many people would be willing to put up with the abuse that a letting agents staff get from both landlords and tenants when say a fridge packs in over Christmas or a tenant damages a prize plant that the landlord had planted in memory of their dog! NWM Link to comment Share on other sites More sharing options...
Aunt Agatha Posted December 24, 2013 Author Share Posted December 24, 2013 I was a landlord a few years ago (we rented out our house in London) when we moved here and while we did pay the agent rather a lot in management fees, there was no finding fee for new tenants. NWM Many of us have to keep up with changing legislation etc in our jobs for for no extra pay, it's just part of the job which our salary covers. I'm sorry you have to put up with abuse from landlords and tenants, no one should have to deal with that at work (or anywhere!) A £350 admin fee is obscene though, there really isn't another side to that one, it truly is a great deal of money for very little. Link to comment Share on other sites More sharing options...
fensaddler Posted December 24, 2013 Share Posted December 24, 2013 I wish that were true - In Scotland where most of my business is based, agents are not allowed to charge any fees to tenants except rent, while in England it really depends where you are and how much competition there is. We can only charge a relatively modest fee to the tenants in Essex but we do not charge the landlords for the same work. The legislation is getting tighter and tighter and we are regularly inspected by the police to check the properties we manage are not being used for cultivation drugs, by HMRC to make sure that overseas landlords are paying the correct tax (we got fined 10k for a client who did not tell us they had split up with their partner and one of them had moved overseas), by the council to make sure that we have registered all the houses with multiple tenants etc etc. All of this we do without being able to charge any fees for this additional time consuming work. All of our staff have to be constantly retrained with the new legislation. I am not trying to make you feel sorry for us but just pointing out that as always there is two sides to every story - my guess is also that not many people would be willing to put up with the abuse that a letting agents staff get from both landlords and tenants when say a fridge packs in over Christmas or a tenant damages a prize plant that the landlord had planted in memory of their dog! NWM I guess there are always exceptions...! :wink: If I'm ever needing an agent in Adelaide I'll head in your direction. Link to comment Share on other sites More sharing options...
noworriesmate Posted December 24, 2013 Share Posted December 24, 2013 I guess there are always exceptions...! :wink: If I'm ever needing an agent in Adelaide I'll head in your direction. Cool and thanks but my business is in the UK - I just live here, living off the massive profits I make for old rope in the UK!! :biggrin: NWM Link to comment Share on other sites More sharing options...
Peccavi Posted December 24, 2013 Share Posted December 24, 2013 I read somewhere (a few months back) that these 'admin fees' are or were being investigated under consumer/company? law... Link to comment Share on other sites More sharing options...
Celt Down Under Posted December 24, 2013 Share Posted December 24, 2013 Where are you looking for private advertisers? Is there a recommended web site they use? Trade me in New Zealand was great for finding private rentals but haven't really found anything similar in the UK. Any info greatly appreciated. I have not checked for private rental websites, but was going to browse the online newspaper for the area in North Wales that I will be looking at staying in. Link to comment Share on other sites More sharing options...
noworriesmate Posted December 24, 2013 Share Posted December 24, 2013 I read somewhere (a few months back) that these 'admin fees' are or were being investigated under consumer/company? law... They are - Shelter pressured the Scottish government and got them to clarify an existing law which ended up with all fees charged to tenants being deemed illegal. In England Shelter are trying to get them to adopt the same law however there is no existing law regarding this so it means that new legislation would need to be introduced. However bare in mind that all that will happen is that rents will go up to cover the loss of revenue so that tenants will end up paying the same overall, just that the admin fee will be included in an increased rent. NWM Link to comment Share on other sites More sharing options...
Peccavi Posted December 24, 2013 Share Posted December 24, 2013 They are - Shelter pressured the Scottish government and got them to clarify an existing law which ended up with all fees charged to tenants being deemed illegal. In England Shelter are trying to get them to adopt the same law however there is no existing law regarding this so it means that new legislation would need to be introduced. However bare in mind that all that will happen is that rents will go up to cover the loss of revenue so that tenants will end up paying the same overall, just that the admin fee will be included in an increased rent. NWM To be blunt this is a modern day ethic that I loathe and detest. The fact of 'if you complain about it we'll find another way to charge you'. The corner shop owner absorbed the cost when he chose to paint his shop, he didn't put prices up to cover it, he needed and valued his customers. You can justify this any way you want, but these are relatively new costs. The ethic nowadays is to charge extra for what was part of service provision in the past. And of course-as you have done; it is defended. It nothing more than holding those in need to ransom. I wish Shelter every success, and hold those who find a way around it; in utter contempt. Link to comment Share on other sites More sharing options...
Jacaranda Posted December 24, 2013 Share Posted December 24, 2013 Surely.....checked references would show you have actually been paying your rent on time and to the amount it is?Do you really need to pay admin fee's for them to check your credit history??? Link to comment Share on other sites More sharing options...
noworriesmate Posted December 24, 2013 Share Posted December 24, 2013 To be blunt this is a modern day ethic that I loathe and detest. The fact of 'if you complain about it we'll find another way to charge you'. The corner shop owner absorbed the cost when he chose to paint his shop, he didn't put prices up to cover it, he needed and valued his customers. You can justify this any way you want, but these are relatively new costs. The ethic nowadays is to charge extra for what was part of service provision in the past. And of course-as you have done; it is defended. It nothing more than holding those in need to ransom. I wish Shelter every success, and hold those who find a way around it; in utter contempt. Obviously you have every right to your opinion however you are basing your argument on the premise that the fees charged to tenants are pure profit for the agent. The problem we are left with in Scotland is that tenants are now applying for a number of properties at a time meaning that agents are carrying out, credit checks, taking up references and sometimes 'holding properties' for tenants who have no intention of taking them - who should pay for this? the agent? the landlords? It is customary in any business transaction for both parties to pay for the parts of the contract relevant to them and this has been the practise in Scotland until last year and still is in England. I am not talking about unreasonable fees, simply ones that reflect the actual work undertaken. It is obvious that any company who has been getting a certain fee that legislation then determines as illegal will need to recoup that money from elsewhere or risk going out of business. In the case of letting agents, the only place they have to turn is the landlords who in turn demand extra rent from the tenant to cover this cost. You may hold agents and landlords in utter contempt but there really is little option - certainly in our case if we simply absorbed the loss of income from fees previously charged to the tenant we would be out of business and then some! NWM Link to comment Share on other sites More sharing options...
Incata Posted December 27, 2013 Share Posted December 27, 2013 I have previously found a rental (and also a house to buy), by finding an area I wanted to live. I then leafleted the area saying I was looking to rent or buy and asking for anyone who was interested to call me. It is amazing how many people are thinking of renting their houses out who will contact you. Incidentally, I also put both myself and my husband's name on the letter (just for safety with the rental). However, it was very successful with both the rental and a couple of years later, the house purchase. Link to comment Share on other sites More sharing options...
Guest guest41161 Posted December 27, 2013 Share Posted December 27, 2013 Was a bit miffed about this when I returned. Refused to go through an agency down in Surrey, and pay fees anywhere from £200-£700, to get a credit check which would have done me no favours (no credit history here as away to long). First rental through Gumtree and private landlord. 2nd rental here in Scotland through an agency, zero fees, and zero credit check. Link to comment Share on other sites More sharing options...
w1johnston Posted December 27, 2013 Share Posted December 27, 2013 We are in North Tyneside (Killingworth) and will be renting our 3 bed house out when we move to Oz, that wont be for a couple of months yet though. We were thinking of renting privately so no admin fees.... let me know if it might be of interest to you. Link to comment Share on other sites More sharing options...
Peccavi Posted December 27, 2013 Share Posted December 27, 2013 Obviously you have every right to your opinion however you are basing your argument on the premise that the fees charged to tenants are pure profit for the agent. The problem we are left with in Scotland is that tenants are now applying for a number of properties at a time meaning that agents are carrying out, credit checks, taking up references and sometimes 'holding properties' for tenants who have no intention of taking them - who should pay for this? the agent? the landlords? It is customary in any business transaction for both parties to pay for the parts of the contract relevant to them and this has been the practise in Scotland until last year and still is in England. I am not talking about unreasonable fees, simply ones that reflect the actual work undertaken. It is obvious that any company who has been getting a certain fee that legislation then determines as illegal will need to recoup that money from elsewhere or risk going out of business. In the case of letting agents, the only place they have to turn is the landlords who in turn demand extra rent from the tenant to cover this cost. You may hold agents and landlords in utter contempt but there really is little option - certainly in our case if we simply absorbed the loss of income from fees previously charged to the tenant we would be out of business and then some! NWM You have put up an informative post and I completely understand your pov, however I don't agree with it. I don't believe for a moment that all those trying to find somewhere to live are doing this, but all must pay. I remain of the view that this 'principle' of surcharging has become so commonplace now, simply because it can be done when people have absolutely no other choice. Charging 'extra' for this or that service is now done because we have to have housing/ power/ and communication. It succeeds because there is no option. If we ever return to a buyers market, these charges I suspect would dramatically reduce or disappear entirely. Link to comment Share on other sites More sharing options...
wakeboard1980 Posted December 27, 2013 Share Posted December 27, 2013 I don't understand this either. When we moved into a flat back in 09 we only paid the credit check fee which was £50 each for both of us. Then in feb last year we were paying 250 and this included a £100 admin fee. I don't hold real estate agents in very high regard, the ones we have dealt with anyway. Sometimes I thought it would be better to deal with a used car salesman. I accidentally paid a months rent after we moved out of our last place and was told there was a 10% admin fee to refund it, I told the lovely lady that was fine but I would then be sending in an invoice for all the work I did on the house whist we lived there, 50% they asked would I mind doing it and the rest they were very appreciative that we did it, so was the landlord. Surprise surprise there was no admin fee. Link to comment Share on other sites More sharing options...
Aunt Agatha Posted December 27, 2013 Author Share Posted December 27, 2013 We are in North Tyneside (Killingworth) and will be renting our 3 bed house out when we move to Oz, that wont be for a couple of months yet though. We were thinking of renting privately so no admin fees.... let me know if it might be of interest to you. Thank you that's very kind but we won't be moving back until autumn/winter 2014. Link to comment Share on other sites More sharing options...
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