No more fees good thing or had thing?

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    No more fees good thing or had thing?

    https://www.theguardian.com/money/20...ill-happen-now

    hi guys I thought this was a good article on the new induction of no more fees I do have to agree there are some cases of extreme extortion it almost reminds me of MPs claiming expenses to extract money from the system instead agents make-up expensive to extract money from the system

    your thoughts?

    #2
    I couldn't read your article as it's too small .

    I was explaining this to somebody, only yesterday, - a tenant I might add but not one of mine:- There are costs involved when a LA does refs, agreements etc so it's fair to say somebody has to pay for this. The LA will pass the cost on to the LL who will pass it on to the tenant. Let's say the fees are £300 and that's passed to the LL. The LL puts the rent up by £10 a month. The average tenancy is 3 years, so that means the T pays £360 instead of £300. After 5 years it's £600..... and so on. Therefore this is bad for tenants.

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      #3
      The Guardian? Says it all really.
      To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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        #4
        Originally posted by JK0 View Post
        The Guardian? Says it all really.
        I guess that you didn't read the article?
        It seems to be little more than a list of what fees the ban will cover - not really something that is affected by the political leanings/bias of any particular publication or group.


        Supposedly the fee ban is intended to encourage people to rent in the future, but I really can't see how it would encourage anyone to rent unless they don't understand that they will be paying these fees as increases in rent anyway. At best it might mean that tenants don't feel obliged to remain in a property until they feel that have been there long enough to justify fees that they have paid and will have to pay again if they move, so tenants may become less likely to remain in properties long term.

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          #5
          This is the latest of a series of legal changed in our sector that looks like they're a good idea but works out badly.

          Some agents (particularly in London and the South East) were charging stupid amounts for doing not much.
          So there needed to be some regulation to keep what could be charged for to a common set of possible charges and to limit them to a scale linked to the rent.
          That would have stamped out the abuse and maintained an income stream.
          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


            #6
            The ban is supposed to shift the charges onto a market that that actually works. Because rental property, itself, is such a sellers' market, tenants can't vote with their feet against excessive charges, so have little market power, but the idea is that landlords will, and as a result the market will force agent fees to reflect the actual value of the work they do.

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              #7
              The only positive to the ban is that it removes the agent's dilemma about who their customer is.
              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


                #8
                Originally posted by Berlingogirl View Post
                I couldn't read your article as it's too small .

                I was explaining this to somebody, only yesterday, - a tenant I might add but not one of mine:- There are costs involved when a LA does refs, agreements etc so it's fair to say somebody has to pay for this. The LA will pass the cost on to the LL who will pass it on to the tenant. Let's say the fees are £300 and that's passed to the LL. The LL puts the rent up by £10 a month. The average tenancy is 3 years, so that means the T pays £360 instead of £300. After 5 years it's £600..... and so on. Therefore this is bad for tenants.
                The costs are £300? Are your for real? Places like OpenRent do comprehensive referencing for £20. So why would a LL need to up rent by £120 per year to cover that? It's a one-off cost....not as if you need to reference your tenants at every renewal point. Agents have been taking advantage of tenants for years by charging £200+ per person for a reference, then £100+ for renewals, etc. I hope a lot of them go out of business and LL's start managing their own properties.




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                  #9
                  I kind of like and the fees a bit like the MPs expenses they just created the system with no real justification to extract cash and it feels like similar was being done with some of these fees agencies were charging work horrendously extortionate

                  they simply made them up just like the MPs expenses to extract cash from the system

                  hopefully this will put more pressure on the estate agents as someone said above to actually act in the landlord's interest as now that would be the only source of income

                  I would ring if they will do something similar with the buyers market where agencies are pushing a buyers fee on properties

                  Comment


                    #10
                    "
                    The costs are £300? Are your for real?"
                    I think you forget that under this new system, If a landlord has to reference half a dozen tenants before finding someone suitable, that will cost LL £120.00 (at your prices)

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                      #11
                      I paid £30 I think for tenant referencing with residential landlords association and that's the extended check

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                        #12
                        I choose to use a high street agent to tenant find for me, so if the charges they charge to a tenant (in the past) are passed onto me then i will of course pass them onto the tenant in their now slightly increased rent, i understand that the referencing and other checks are not that expensive but i am not doing them.... they are, and then up'ing their fees to me, that's ok, but that extra will not be paid by me.

                        Comment


                          #13
                          Originally posted by BurnCK View Post

                          The costs are £300? Are your for real? Places like OpenRent do comprehensive referencing for £20.
                          There are more costs than referencing, e.g. agent's overheads, staff cost and profit; failed references.
                          Oh, and increased rent to recover those costs in a reasonable time will probably mean increased commission.

                          Originally posted by BurnCK View Post
                          So why would a LL need to up rent by £120 per year to cover that? It's a one-off cost
                          Because the Tenant Fees Act does not allow the cost to be recovered in any other way.
                          And LL does not know how long a T will stay, so has to make a business decision on timescale for recovering costs.

                          Comment


                            #14
                            Originally posted by Hudson01 View Post
                            I choose to use a high street agent to tenant find for me, so if the charges they charge to a tenant (in the past) are passed onto me then i will of course pass them onto the tenant in their now slightly increased rent, i understand that the referencing and other checks are not that expensive but i am not doing them.... they are, and then up'ing their fees to me, that's ok, but that extra will not be paid by me.
                            It's a good point quite simply the agents will charge more to the landlord , the landlord will try and charge more for the rent, the market won't accept it so effectively reduced margin for landlord who use agency.

                            Comment


                              #15
                              Originally posted by blinko View Post
                              I paid £30 I think for tenant referencing with residential landlords association and that's the extended check
                              What did the extended check include?

                              Comment

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