Rental Market Changing |
 |
8th June 2009
Reports in today's press suggest that the number of new rental properties placed on the market has fallen by nearly 50%. Bushells has experienced a decline, though much smaller than the national average. The reason is cited as a decline in the number of people who have previously been forced to let their property because they cannot sell. Our view is that this is true in part, but a more common reason is that tenants are staying put rather than moving reducing the number of properties becoming available.
The knock on effect of this has been that some agents, desperate for business, are reducing fees to unsustainable levels. In some cases, there has been an increase in 'hidden charges' to compensate for these cheap fees. Referencing costs have increased, as have administration charges. Extension fees are another factor where not only is the same commission charged in perpetuity, but additionaladministration fees can be charged to both tenant and landlord. We are aware of agents who received a 'commission' from providers of the required Energy Performance Certificates and further, commission from contractors is not uncommon.
Simply, an agent charging 'too good to be true' fees is unlikely to be able to provide the advertising and service required. Never be tempted to favour fees over accreditation. The Ombudsman is NOT a regulator, rather a redress scheme when things go wrong. Look for agents regulated by ARLA, NALS, or NAEA. That way you know you are dealing with a company who has subscribed to a code of practice and who has necessary insurances in place and complies with all pertinent legislation.
