Ripoff agency fees should not be banned.

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    #16
    Of course the industry will still function but the question is at what cost to other services. It would be good to see some feedback back from Scottish agents and what cut backs they are making to compensate the drop in income. It has to come from somewhere.

    Believe it or not some agents do invest in training for their staff and my budget runs into 4 figures every year.

    Why should small self managing landlords be squeezed out of the industry? Many are more than capable of renting their property themselves in a competent manner. You could use the same argument for small agents who just muddle along and their are plenty of those about.

    Comment


      #17
      This is all based on feelings and personal opinions: 'ripoff fees', 'excessive profits', etc.

      Profit margins and costs are irrelevant. A consumer sees a price tag and sees what he gets for that price, and is fine with it or not.
      Most things we buy are sold as 'ripoff' prices if we knew exactly how much they actually cost.

      Any sort of meddling is dangerous and a very slippery slope.

      Under the cover of improving standards, these redress schemes for agents, etc. just create more barriers to entry and reduce competition amongst agents, which is not good for landlords.

      Likewise, more regulations squeezing out small landlords will end up not being good for tenants.

      Many properties, many small landlords, and many small agents would be ideal for consumers, i.e. primarily tenants., in terms of fees and rent levels.

      Originally posted by jpkeates View Post
      The codes of practice all seem to require all fees to be clearly listed to prospective tenants - my own agents fees were quite illuminating the first time I saw them clearly listed.
      On this, I think that landlords and agents are also not very aware of the law of agency:

      If you, as the agent's principal, is not aware of and has not agreed to your agent directly charging tenants or prospective tenants when carrying out work on your behalf then any fee is a secret profit and is payable to you.

      I wish landlords would start sending payment demands to their agents. That would be quite entertaining.

      Comment


        #18
        Originally posted by bureaucrazy View Post
        T
        I do not agree. There is no need to ban fees. Tenants have a free choice whether or not to pay agency fees.

        Many enjoy the service provided by an agent and are happy to pay £100's of fees. If they do not want to pay the fees, many landlords will be happy to rent directly to them and usually at a lower rent than through an agent.
        Please put me in touch with a single tenant who has enjoyed forking out hundreds of pounds for the services provided by an agent.
        If agent's fees were banned, there would be even less motivation for tenant to go through the unsavoury experience of renting direct from a landlord. Private landlords would be forced to use the services of an agent and would have to increase rent accordingly.
        Most tenants would rent directly from a landlord if they got the chance - why on earth should it be 'unsavoury'? You are talking nonsense.

        I suppose turkeys are never going to vote for Christmas....
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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          #19
          Originally posted by jjlandlord View Post
          On this, I think that landlords and agents are also not very aware of the law of agency:

          If you, as the agent's principal, is not aware of and has not agreed to your agent directly charging tenants or prospective tenants when carrying out work on your behalf then any fee is a secret profit and is payable to you.

          I wish landlords would start sending payment demands to their agents. That would be quite entertaining.
          That's nicely up my sleeve just in case.

          In future, I will end up paying the equivalent of these fees if I want to enjoy the same service.

          In the longer term, companies will provide an equivalent service for a fee; it's inevitable.
          Landlords will be superseded by property owning organisations and agents will be replaced by property management companies.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #20
            Originally posted by jpkeates View Post
            Small landlords need to be squeezed out of the market long term and replaced by professional investors and service providers.
            You can't have such a large proportion of the housing stock in the hands of people who you cannot be sure know what they are doing and offering such variable levels of service.
            Not every small landlord is clueless, although for the few who fail to comply with the rules, it is likely that they themselves will suffer as a result.

            The consolidation you describe is not good for the market, taking away variety and choice. There needs to be a free market with a variety of suppliers to suit the variety of customers.

            More regulation reduces consumer choice. Small, medium and large landlords will all be squeezed over the coming years with the govt donating billions of tax to banks to build 'bank estates'.

            My original point was to ask what is wrong with agency fees if tenants are free to choose landlords who do not charge fees?

            Comment


              #21
              What happened years ago? I did not pay an agent any fees when I rented a flat for four years some 20 odd years ago. I suppose it must have been included in the rent-which did not seem excessive at the time.

              Comment


                #22
                Originally posted by jpkeates View Post
                Most people I speak to are fairly OK with paying fees for "help" in finding a property and being credit checked and signed up.
                Illegal surely: http://www.legislation.gov.uk/ukpga/Eliz2/1-2/23

                Comment


                  #23
                  That's interesting.
                  I always wondered why agents didn't charge prospective tenants simply to be able to see their stock of properties.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment

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