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Lettings Admin and Holding Deposit Fees
Former Member
Posts: 1,876,323 The Mix Honorary Guru
I was just about to view a property and enquired about a particular letting agents fees. To confirm that I wanted the property I would have to pay £195 admin fee and a holding deposit of £825. So before my credit checks, contract was drawn up etcthe estate agent wanted me to pay £1020 on a rental property of £750.
Now with my previous letting agents I only paid £135 upfront for credit checks etc. and then the tenancy deposit and 1st months rent a couple of days before moving in.
I let them know that previously I've never paid my entire deposit upfront and my response back was
"Usual procedure is to pay the Holding Deposit and admin up front, property is then held for you subject to the usual checks etc re application, until these are paid the property continues to be marketed. If for any reason the application is not sanctioned (approved), then you will lose your admin fee. Following sanction if for any reason you do not complete on the due check in date (very rare) then you would lose all your admin fee and half your Holding Deposit. The Holding Deposit on the day you move in becomes the Damage Deposit and is duly registered with the Tenancy Deposit Scheme and you receive a certificate of registration.
Please let the office know if you wish to still view"
Does the above sound confusing, misleading or am I just out of touch, should we all now be paying over £1000 before we even sign the contract.
Any help much appreciated.
Sandra
Now with my previous letting agents I only paid £135 upfront for credit checks etc. and then the tenancy deposit and 1st months rent a couple of days before moving in.
I let them know that previously I've never paid my entire deposit upfront and my response back was
"Usual procedure is to pay the Holding Deposit and admin up front, property is then held for you subject to the usual checks etc re application, until these are paid the property continues to be marketed. If for any reason the application is not sanctioned (approved), then you will lose your admin fee. Following sanction if for any reason you do not complete on the due check in date (very rare) then you would lose all your admin fee and half your Holding Deposit. The Holding Deposit on the day you move in becomes the Damage Deposit and is duly registered with the Tenancy Deposit Scheme and you receive a certificate of registration.
Please let the office know if you wish to still view"
Does the above sound confusing, misleading or am I just out of touch, should we all now be paying over £1000 before we even sign the contract.
Any help much appreciated.
Sandra
0
Comments
Agents are horrible! They take money from you for very little (a credit check costs £30 and calling to check references will take under an hour of their time) but it seems to be very very common with agents these day to charge astronomic fees
Thanks
It's also worth trying to negotiate the fees down. This doesn't always work, but - as Miss_Riot says - they're not really doing anything for that money, so there can be space for bargaining there.
The agents fees are a bit harder to deal with. They're just something they make up as a fee and, like all fees, can be negotiated downwards. But it depends on the market in your area. Most agents seem to charge the same in a given area- in the north east their admin fees are typically 50% of a month's rent. They all charge the same, not that letting fees operate a cartel, perish the thought. If the rental market is weak then you can negotiate more on the fees. Unfortunately, most rental markets are strong at the moment, so fees negotiation is a lot harder to achieve. It is disgusting the fees they charge, given a check with a credit reference agency costs around £25+VAT, but they charge them because the market doesn't allow the consumer to vote with their feet.
In short, when I am malevolent dictator of the world, letting agents will be going bollocks-first into a bacon slicer.
Amen to that.