Arrangement Fees For Tenants

[jgb75]

This will be our first time renting after selling our house. I'm trying to find out what fees are usually paid to the agent by the tenant at the start of a tenancy. I know about reference check fees and check-in and documentation fees. However, this local agent requires the tenant to pay 1/2 months rent + VAT as an arrangement fee (Groves, see last line of page), is this normal? This would be £881.25 for a £1500pcm place, which seems rather excessive for a 6 or 12 month lease.

Do all agents charge this sort of fee to the tenant, or is it just a case of avoiding this one agent? Which would be a shame as they have some good properties available.

Thanks in advance for any info...

[mhifoe]

This will be our first time renting after selling our house. I'm trying to find out what fees are usually paid to the agent by the tenant at the start of a tenancy. I know about reference check fees and check-in and documentation fees. However, this local agent requires the tenant to pay 1/2 months rent + VAT as an arrangement fee (Groves, see last line of page), is this normal? This would be £881.25 for a £1500pcm place, which seems rather excessive for a 6 or 12 month lease.

Do all agents charge this sort of fee to the tenant, or is it just a case of avoiding this one agent? Which would be a shame as they have some good properties available.

Thanks in advance for any info...

I'd say that is massively over the top.

I picked up a leaflet from a local agent yesterday, and they charge £200 as an arrangement and credit checking fee. To be honest I think that is pretty steep! Paying almost a grand is ridiculous.

[Imp]

Do all agents charge this sort of fee to the tenant, or is it just a case of avoiding this one agent? Which would be a shame as they have some good properties available.

Most agents charge the tenants something. I tend to contact agents before asking to look at houses and ask them what their fees are. I personally think most of these fees are unreasonable. For £800 you should be able to expect about 5 hours work from most proffessionals. Somehow, I don't think the arrangement of the contract takes 5 hours, and if you try to get them to change the contract to suit you, they will always refuse. They are working for the landlord.

[novicerenter]

Some (few) agents charge nothing to tenants, some charge £30, some £90 (mine charged that including a reference check company's services) and some (not that many I think) charge £125 to £200. I've not heard of above £200 previously.

[Pedro]

I'd suggest avoiding that agent (you could even tell them why & provide examples of other places that don't charge nearly as much). I've paid about £60 in the past for credit checks. I wouldn't pay much more. There does seem to be a wide difference between the amount different agencies charge.

[Guest Fiddlesticks]

This really depends on where you are, but in London I've never used an agent. I've always rented directly through Loot. I can never really see the point of agents. They make up spurious charges for both sides of the deal, and usually seem to act as an impediment to good communication between tennant and landlord, rather than a channel for it.

[Goat]

If you fancy being really cheeky, make an offer to the landlord but insist that he meets all agents charges (they are after all his agents, not yours).

I wouldn't want to be the one to make that phone call (er, yes we've got an offer but they want £800 off the first month's rent to cover our charges).

[jgb75]

This really depends on where you are, but in London I've never used an agent.

This is in Newcastle upon Tyne. Having rung around most of the local agents, it seems that the smaller outfits with only 1 or 2 branches charge the tenant 1/2 months rent + VAT, while the national chains only seek to cover their costs (charging between £100 - £200).

I can only assume that the smaller agents are trying to attract business from landlords by reducing their commission and passing the burden onto the tenant. Surely, this business model only works if ALL the agents do it, otherwise tenants will just go to the agents with the lower fees. There is no shortage of properties with the national chains after all.

[Carabansity]

Reeds Rains charged us £120 for credit checking, etc. Local branch was useless but the Manchester Lettings Office was even worse. Thankfully they were just the introducers and we have good landlords (a major regional house builder) that we deal directly with.

[woody]

I know Foxtons charge about £320 plus VAT to the tenant and then charge an additional amount for inventory check-in and then check-out etc etc. I thought they were expensive but £800 is a bit OTT.

[Guest Guy_Montag]

So can you get the LL's address from the land registry & approach him/her direct? I'm not sure if this would work, but £800 is a huge amount.

[undersupply]

This is in Newcastle upon Tyne. Having rung around most of the local agents, it seems that the smaller outfits with only 1 or 2 branches charge the tenant 1/2 months rent + VAT, while the national chains only seek to cover their costs (charging between £100 - £200).

I can only assume that the smaller agents are trying to attract business from landlords by reducing their commission and passing the burden onto the tenant. Surely, this business model only works if ALL the agents do it, otherwise tenants will just go to the agents with the lower fees. There is no shortage of properties with the national chains after all.

http://www.northeastlettings.com/tenants.asp

These are the dudes I'm renting with in the toon, let me have a 3 month lease happy days

Fees are 50% of 1 months rent ie 325sheets.

I pay 650 a month to live in an apartment that cost the landlord 195,000.

[Mr Blek]

I paid 100+vat.

I actually went to my agency today as they were being right twats over giving me receipts for my rent. They'd lost the statements I'd sent to them as proof of payment to the landlady via standing order. They were being stubborn mfs. No proof=no receipts. So I thought ****** it, I'm giving my notice in and finding a private landlord. Next thing I know, panic call from the landlady. What was the prob, didn't I like the flat, was there anything she could do to make me reconsider? Sounded totally desperate. Told her about receipts and what a bunch of tossers the agency was. Offered to go private with her, but apparently she had an agreement with the agency that she can't take on a tennant for three months that has handed their notice in.

[Pedro]

I paid 100+vat.

I actually went to my agency today as they were being right twats over giving me receipts for my rent. They'd lost the statements I'd sent to them as proof of payment to the landlady via standing order. They were being stubborn mfs. No proof=no receipts. So I thought ****** it, I'm giving my notice in and finding a private landlord. Next thing I know, panic call from the landlady. What was the prob, didn't I like the flat, was there anything she could do to make me reconsider? Sounded totally desperate. Told her about receipts and what a bunch of tossers the agency was. Offered to go private with her, but apparently she had an agreement with the agency that she can't take on a tennant for three months that has handed their notice in.

I wonder whether - since the agents clearly weren't doing their job in not giving you receipts - your LL has grounds to break that agreement? Just a thought!

[Sisyphus]

This will be our first time renting after selling our house. I'm trying to find out what fees are usually paid to the agent by the tenant at the start of a tenancy. I know about reference check fees and check-in and documentation fees. However, this local agent requires the tenant to pay 1/2 months rent + VAT as an arrangement fee (Groves, see last line of page), is this normal? This would be £881.25 for a £1500pcm place, which seems rather excessive for a 6 or 12 month lease.

Do all agents charge this sort of fee to the tenant, or is it just a case of avoiding this one agent? Which would be a shame as they have some good properties available.

Thanks in advance for any info...

I'm paying £100 + vat for a £1560 rent + £60 for the inventory - moving in in 2 months. Sounds like they're having a laugh. Are they a member of ARLA?

[lampkin]

My neighbour owns a few BTLs and he says the agents also try to charge him huge fees as well, it seems like some places also charge these "admin" fees to the land lord..

I am currently looking for a new place to rent as out land lord is selling up. It seems like the £100 admin fee is pretty standard throughout all agents. I havnt a clue what agents actually do to earn there money. In my last two residents they have done absolutely nothing. On speaking to my current land lord about it he was pretty pissed off to find out that they hadnt done anything they were supposed to (gas checks and things).