Letting Agency Fees

Remember that tempting £10.99 flight to Paris which actually cost you £109?  Are you sure your letting agent isn’t operating a similar pricing strategy?

Most landlords searching for a letting agent focus on the agent’s commission rate. At Simply Let we charge 12.5%. Some are more expensive and some will charge less, but we believe that 12.5% is about right for what we do and the expertise and professionalism we bring to the task.

However you need to look behind that headline rate to discover what other charges you might be faced with.  We’ve heard of agents making exorbitant charges to their clients each time a new tenant moves in and even of agents charging their client each time the contractual tenancy period ends even although the same tenant is staying put (Foxtons-Case).  We hear of letting agents charging prospective tenants dear for referencing and even for checking them in to their new home.  Such charges could well act as a disincentive to tenants and so prolong the time taken to secure a new tenancy.  Simply Let is transparent about the fees and costs it charges to both landlords and tenants, and that information is available on request.

Pre-tenancy charges to tenants are illegal in terms of the Housing Acts although many agents (Simply Let included) take the view that a charge for referencing applicants is not unreasonable.  However, we believe that such a charge must relate to the actual costs involved instead of being as high as prospective tenants will bear.

At Simply Let we take the view that we owe a duty of care to the landlord (who is or client) and we treat our client’s property just as if it were our own, seeking responsible tenants who are likely to stay, and so minimising void periods which are the most expensive times for our client.  That is our duty as professionals.  Some agents must surely relish changes of tenancy, seeing them as an opportunity to impose charges both on their landlord client and on applicant tenants. 

So landlords, where does your agent’s loyalty really lie and how much are those attractive commission rates really costing you?  Are those charges to tenants perhaps acting against your own interests?  Tenants, why not challenge that expensive referencing or “administration” fee or even ask the agent how it squares with the statutory prohibition of pre-tenancy charges?

J R Gell MRICS

Director

Simply Let Ltd.