An experienced landlord with several properties in London says it is “beyond cheeky” that many letting agents charge tenants hundreds of pounds to secure a property. The same letting agents are charging landlords for the same
services, so they are enjoying two bites of the same cherry.
The landlord describes how her daughter and some friends were charged an extortionate £1,400 to secure a lease on a house. The girls thought the money was a deposit, whereas it was actually a fee. It was also non-refundable. Not surprisingly, she was furious. She comments that the ban on “rip-off” letting agents fees can’t come soon enough.
Will Letting Agents Hike Landlord Fees?
There are some people who think letting agents will hike landlord fees once the ban on tenant fees comes into effect, but this landlord doesn’t believe it will happen. She points out that landlords can always switch to a different letting agent if they are not happy with the service, whereas tenants are stuck. Even if landlords are charged more – and have to raise their rents to compensate – tenants will know up-front how much they have to pay. In many cases, letting agent fees are often hidden in the small print and tenants don’t have a clue what they are being charged.
ARLA CEO David Cox has claimed that tenants will be worse off when letting agent fees are banned, but this is unlikely. If anything, letting agents are the people set to lose out.
If you’re interested in the fees ban check out our fees ban guide created specifically for landlords: