Autumn Statement-Letting Agents Fees

[BBassic]

This does help tenants - At the moment, it's completely anti competitive. Tenant looks for the right house at the right rental, in most cases they aren't going to be looking through specific agents. I, as a landlord, can negotiate the fees and rates that I pay but the tenant cannot, it's not fair. Bloody hell, I think I'm just agreeing with something that the tories are doing.

I used to be a letting agent before I developed a conscience.

We used to charge £60+ VAT for contract renewals (this was a few years ago) but the reality of the admin involved was this: Open a template document, add the names, print, stick in envelope, put in post box.

All told about five minutes of my time and maybe a quid for paper, ink and postage. That's it.

It is diabolical what they can get away with charging.

 

[cjd]

As a landlord, just to put a reflection of costs on here, my Letting Agency inform me that an increase in rent for the tenant should be £10 a month at the end of their AST.

I then receive an additional £10 a month for the duration of the AST (6 months).

However this breaks down as follows for myself, the tenant, the Letting Agency and the Government.

Me: Increase in income 6 x £10. = £60. Deduct my cost for new contract £50.00 + VAT £10 and Agency fees ( 8 per cent..£4.80 & VAT £0.96). Total overall loss.......£ 5.76p

Tenant: Increase in rent 6 x £10 =£60. Tenant cost of new AST , £50 + VAT £10.
Total cost to tenant £120.00

Letting Agency: Fees received from Tenant and me......£100.00 + VAT £20.00. Increase in fees received from Me, £4.80
Total gain to Letting Agency £104.80p

Government; VAT Received from Me, £10.96p. VAT received from Tenant, £10.00p
Total gain to HMRC £20.96p.


I am not at all surprised at the way in which Letting Agencies are perceived.

 

[HastingsSeagull]

The rents I charge have had to go up a lot to pay for all the gas safe, electric safe, council register, etc. charges. I'm not paying them my tenants are so higher rents all round and I can round up to the nearest fiver too which buys me a beer a month over the 3 rooms

 

[Notters]

As a landlord, just to put a reflection of costs on here, my Letting Agency inform me that an increase in rent for the tenant should be £10 a month at the end of their AST.

I then receive an additional £10 a month for the duration of the AST (6 months).

However this breaks down as follows for myself, the tenant, the Letting Agency and the Government.

Me: Increase in income 6 x £10. = £60. Deduct my cost for new contract £50.00 + VAT £10 and Agency fees ( 8 per cent..£4.80 & VAT £0.96). Total overall loss.......£ 5.76p

Tenant: Increase in rent 6 x £10 =£60. Tenant cost of new AST , £50 + VAT £10.
Total cost to tenant £120.00

Letting Agency: Fees received from Tenant and me......£100.00 + VAT £20.00. Increase in fees received from Me, £4.80
Total gain to Letting Agency £104.80p

Government; VAT Received from Me, £10.96p. VAT received from Tenant, £10.00p
Total gain to HMRC £20.96p.


I am not at all surprised at the way in which Letting Agencies are perceived.

It's pretty clear who's laughing in that arrangement isn't it?

 

[mikeyjh]

I used to be a letting agent before I developed a conscience.

We used to charge £60+ VAT for contract renewals (this was a few years ago) but the reality of the admin involved was this: Open a template document, add the names, print, stick in envelope, put in post box.

All told about five minutes of my time and maybe a quid for paper, ink and postage. That's it.

It is diabolical what they can get away with charging.

I suspect it's somewhat easier in the new system, find name, click 6 months extension, print & send. Or even send to DocuSign....

 

[mikeyjh]

It's pretty clear who's laughing in that arrangement isn't it?

And even clearer who isn't.

 

[Triggaaar]

Wont they just pass them onto the landlords who will increase rents to cover their higher fees

No. Remember that landlords are scum, so they are already charging the maximum that the market will bear. And if agents put up fees for Landlords, they'll have to reconsider whether to use the agent or do the work themselves.

This is good news for tenants.

 

[dejavuatbtn]

As a landlord, just to put a reflection of costs on here, my Letting Agency inform me that an increase in rent for the tenant should be £10 a month at the end of their AST.

I then receive an additional £10 a month for the duration of the AST (6 months).

However this breaks down as follows for myself, the tenant, the Letting Agency and the Government.

Me: Increase in income 6 x £10. = £60. Deduct my cost for new contract £50.00 + VAT £10 and Agency fees ( 8 per cent..£4.80 & VAT £0.96). Total overall loss.......£ 5.76p

Tenant: Increase in rent 6 x £10 =£60. Tenant cost of new AST , £50 + VAT £10.
Total cost to tenant £120.00

Letting Agency: Fees received from Tenant and me......£100.00 + VAT £20.00. Increase in fees received from Me, £4.80
Total gain to Letting Agency £104.80p

Government; VAT Received from Me, £10.96p. VAT received from Tenant, £10.00p
Total gain to HMRC £20.96p.


I am not at all surprised at the way in which Letting Agencies are perceived.

I think the moral of this tale is that you shouldn't put up rents until it is financially viable to do so. If the agents are deciding your rents then you might want to change your agent.
I don't know when all these fees started getting charged to the tenant, but I would have thought that these bits of admin should be paid out of the agent's income.

 

[cjd]

I think the moral of this tale is that you shouldn't put up rents until it is financially viable to do so. If the agents are deciding your rents then you might want to change your agent.
I don't know when all these fees started getting charged to the tenant, but I would have thought that these bits of admin should be paid out of the agent's income.

My 'post no..48' is by no means the whole story, but merely wanting people on here to understand where all the money goes. Yes, I am a landlord ,but as can be seen from my figures quoted the biggest loser is the tenant. Quite why Letting Agency fees are so high bemuses me ?

The high fees by Agencies need to be examined more closely, but the long term answer is the need to build significantly more house and above all, to help first time buyers. All my tenants are young professionals but are unable to jump through all the hoops required by Banks and Building Societies. I would sell my flats to them tomorrow if they could raise the funds.

 

[LamieRobertson]

Listening to the Autumn Statement now ....zzzzzzzzz

 

[Ernest]

The rents I charge have had to go up a lot to pay for all the gas safe, electric safe, council register, etc. charges. I'm not paying them my tenants are so higher rents all round and I can round up to the nearest fiver too which buys me a beer a month over the 3 rooms

People like you are scum, profiteering off of the poor and sooner the likes of you are dealt with the better

 

[Chicken Run]

The rents I charge have had to go up a lot to pay for all the gas safe, electric safe, council register, etc. charges. I'm not paying them my tenants are so higher rents all round and I can round up to the nearest fiver too which buys me a beer a month over the 3 rooms

I do hope your baiting, if not the above is vile!

 

[Meade's Ball]

It is difficult to know how to talk to these letting agents. I have made the mistake, and I will do again, of thinking they will know anything about a property, and even taking comfort from their reply. Such ineptitude, and such a lack of compassion and decency from some I have had to share space with, and waste time.
I had one last week that said they'd get a place that we liked just enough part-furnished rather than fully furnished as the landlord is flexible. Their idea for that was, in fact, me putting the unwanted furniture into storage for them. ER WHAT? I yelped. Anywho, I had to pull out of the whole deal, and I won't go with that agency again. On the second viewing request, they'd not even turned up, and soggily out in the rain my girlfriend and I stood. Pah, to them there letting stools.

 

[worthingseagull123]

We need rent control. Let the state decide the maximum rents allowed.

I own my own home BTW - I am not a bitter renter.

 

[NooBHA]

I've always found the term landlord to be offensive, for some reason in this country renters might as well be labelled losers the way they are sometimes treated.

I totally agree - As the name suggests ''Land Lord'' - A throw back to when the Wealthy Land Owning Aristocracy charged the poor in society just for privilege of being alive and living on land passed down to them by Royalty.

It's quite a disgusting terminology and just ticket to exploit the less well off in society - Nothing has changed in hundreds of years

 

[Herr Tubthumper]

Just so I have a better understanding of this where do NSC position letting agents? Above teachers and cyclists but below Hitler?

 

[BBassic]

We need rent control. Let the state decide the maximum rents allowed.

I own my own home BTW - I am not a bitter renter.

I own my home as well but I'm still pissed off about the renting situation in this country. I was only able to afford to buy my flat because my nan died and left me some money. Otherwise I'd still be renting, still unable to put more than £50 a month away in savings.

 

[alfredmizen]

Wont they just pass them onto the landlords who will increase rents to cover their higher fees

Jesus fvcking wept , you are so determined to be negative about literally anything the government does you're making yourself look extremely silly .

 

[NooBHA]

Just so I have a better understanding of this where do NSC position letting agents? Above teachers and cyclists but below Hitler?

I don't tar all people who rent out properties with the same brush because many of them are considerate to their tenants because they are needed because when people are starting out on a journey of adulthood they mostly rent but land lords who are not considerate of poorer tenants needs I find difficult to sympathise with.

Home owners also rent to the wealthy perhaps when they move jobs temporarily and other instances like that and I have no problems in those instances with a Capitalist attitude by home owners because I may not be a fan of Capitalism but it does work for society as a whole but when the poor and the meek are exploited, that doesn't sit well with me.

 

[Badger]

Just so I have a better understanding of this where do NSC position letting agents? Above teachers and cyclists but below Hitler?

They're part of the holy trinity of hated agents: Letting, Estate, Recruitment.

I'd say it's something like:

Hitler
Estate agents (you want how much for showing a couple of people my flat?)
Letting agents
Recruitment agents (often clueless and incompetent, but at least they don't usually charge a fee)
Cyclists
Teachers (why does NSC hate teachers?)