Lettings Agents Under Fire!

A report by Citizens Advice says that extra costs raised by Letting Agents, including administration fees and reference checks, could add up to £600 to the cost of renting a home.It said that many of these costs were imposed for tasks that were part of the "routine business" of letting and managing a property."The charges can be a huge barrier for people on low and even average incomes," said David Harker, chief executive of Citizens Advice.

"In some cases letting agents appear to make them up as they go along."

Bushells contest this is typical sensationalist journalism and fails to differentiate between rogue agents and reputable firms. It is a biased report with no sense of perspective. Furthermore, it completely fails to explain why fees are charged. The claim that such could add up to £600 to the cost of a tenancy is an extreme, not the normal situation.

A reporter on BBC news claimed these charges 'could appear from nowhere' and added as an aside '.... even after they [the tenants] had signed." This is uninformed and misleading. If this were true, then either the tenant failed to read the terms and conditions provided, or it is a matter for Trading Standards.

Referencing fees are paid for by the tenant because its they who are the subject of the report. If the tenancy doesn't proceed for whatever reason, the tenant can use the reference report to secure another property through another agent. It's their report and it is quite proper that they pay for the same.

The administration fee is charged to both Landlord and Tenant for the benefit of using our tenancy agreement as it protects both parties interests. These tenancy agreements are carefully drafted and updated to reflect changes in legislation and case law. Such legal advice is not cheap, nor is the Professional Indemnity Insurance which would cover either party in the event of a failing on Bushells part. This fee also cover the cost of service of notices and negotiating extensions or early terminations.

The check out of a property is there to protect the tenants interests. The Landlord pays for the Inventory and check in, the tenant for the check out. By doing so, there is no conflict of interest between Inventory Company and Tenant and this is entirely consistent with the rules of the Tenants Deposit Scheme. Bushells only charges the tenant the actual cost of a professional, independent Inventory Clerk.

Bushells does not make any charge to a tenant should they wish to extend the tenancy. As a matter of record, we drastically reduce our fees to the Landlord in the second year of a tenancy and, should the tenant remain in the property, charge no further fees to either party.

The message is, if you are thinking of renting, make sure you get details of the all charges at the earliest opportunity and before you pay any money to the agent. If an agent is not a member of ARLA, NAEA, NALS or the Property Ombudsman, then please think very hard as to why.

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