Are You Being Overcharged On Letting Agency Fees

How much can letting agents charge in fees? How to complain if you are overcharged:

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The issue regarding letting agency fees has been an on-going problem for some time. A combination of unreasonable and hidden fees has attracted criticism from both the public and government. It appears this criticism is being justified by the fact that letting agencies are being accused exploiting tenants who cannot afford to buy properties. Considering the fact that agents already earn fees charging landlords to rent out their properties, it is understandable why the spotlight is on sky high letting fees.

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In relation to hidden fees, it is common practice for many agencys’ to withhold information from tenants regarding extra costs beyond rent and deposit. This would include the administration fee charged which is sometimes made unclear for tenants. One such agency, has recently been found guilty of charging tenants an astonishing £420 administration fee in addition to £96 to renew terms and conditions. It is examples such as this, which has prompted established charities such as Shelter to call for the abolition of letting fees. Shelters, own research has found that the average letting fee was almost £350 rising in some cases to £700. When you consider that that the average tenancy lasts only 6 months, it seems immoral to keep inflicting a tenant hundreds of pounds to set up a new tenancy agreement.

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Greater transparency is needed within this sector if we are to resolve the issue of disproportionate letting fees. Letting agents must give the tenant a breakdown of charges from the outset including any administration fees. This gives the tenant the opportunity to make an informed decision whether or not to go ahead. A possible solution to this problem would be a total ban on upfront fees and clear standards of professional practice between tenants, landlords and agents with clear rules and enforceable penalties for unethical practice. This would go some way in restoring the public’s confidence in this hugely important industry.