Tenant Admin Fees

The main belief people have about lettings agents is that they charge unnecessary administration fees and this can be a driving force for people to limit their search to finding a property privately. It is true that some unscrupulous lettings agents can potentially charge an unlimited and very high admin fee. So common has been this practice in the past that lettings agents are now required by law to post a notice on all listings making potential tenants aware that an admin fee may apply. This prompts all prospective tenants to inquire about the fees beforehand. Majority of agencies however are not the bad guys they are sometimes made out to be, and only charge reasonably to account for all the work involved for processing the tenancy. The advantage of using a letting agent over a private landlord is that you will have a comprehensive, detailed and up-to-date assured short hold tenancy agreement and proof of deposit registration with one of the governmental approved deposit schemes. A good letting agent will ensure the landlord has an Energy Performance Certificate and Gas safety certificate for the property which are legal requirements. They will also facilitate the move-in by liaising with the landlord to check that the property will be clean and an inventory in place. At Property People we charge a one-off admin fee of £150 per applicant. This is a small amount to pay for this peace of mind and is only payable once the agreement is signed. You are never expected to pay to simply register with an agency or for them to send you through property portfolios or to take you on viewings. The fee covers- - Reference Checking. Obtaining and checking the new tenants references, e.g. employment and previous landlord references. - Credit Checks- We run a background credit check on the prospective tenants to ensure that it does not flag up any CCJ’s or bailiff action. - Drawing up and signing of the tenancy agreement by all parties. - Time spent negotiating conditions and making arrangements between the landlord and tenant. Be warned! Some agencies can mask costs and initially provide a figure for the admin fee, however when you are ready to proceed as you have fallen in love with the property they may add a few extras to the invoice by breaking down the costs individually, for example adding on £50 for an inventory to be provided. Property People are completely honest and transparent about the costs involved, and our admin fee is always a flat £150 per applicant which includes everything. We promise to never surprise you with any hidden costs. Questions to ask your letting agent: - Is there an admin fee to pay? - Does the admin fee cover all the extras such as, inventory, check-in, tenancy agreement, referencing? - Is that the only fee I have to pay to move into the property in addition to first month’s rent and security deposit (usually 6 weeks rent)? - Is the admin fee refundable if the tenancy doesn’t go ahead for some reason? By Natalie Elms Senior Lettings Negotiator at Property People. Best Value Letting Agent in Wandsworth