Pre & Post Letting Fees

[kathekas]

Hi

With the new legislation imminent, how are people planning on dealing with the consequences?

Is the answer to increase the rent. I reckon than on a 1 year rental I would have to increase the rent by about £20 - £25 a month and us an online letting agent.

I would appreciate other peoples views.

Happy New Year everyone.

[MisterB]

depends on which part of the new legislation you are referring to

[jpkeates]

Rent prices just aren't that flexible in most places.
Lots of landlords don't use agents and won't be affected by the changes much at all.

Rent is set by expectation as much as supply and demand.
Agents set rates, landlords look at right move and history.
Depending on the time of year and interest, my rates can vary by £25 - 35 a month for the same property.

What will change is that landlords and agents will have a huge increase in applications that have no chance of getting through because the cost of trying is transferred from the prospective tenant to the landlord/agent.

So, in the medium term - after a landlord's first experience, trying to get an application accepted is going to be much more difficult for a prospective tenant, as they're going to have to be able to show that they're likely to be accepted to even get started.
It will be carnage for first time renters.