Letting agent admin fees?

We've found a flat we like and are prepared to rent it. However, the letting agent wants to charge us an admin fee of £316.50.  They say it's "half a month's rent plus VAT" standard charge, but this seems very excessive.

I realize that an admin fee is quite standard, due to the cost of background checks and bank checks, etc, which all cost the letting agent money. However, if we rent, we are signing a 6 month lease, and paying all 6 month's rent up front, in cash. Therefore, the letting agent will incur no cost for renting to us.

This seems like usary to me. Any thoughts?

We paid 3 months' upfront and paid £200 in admin fees (including application fees for my husband and I).  Under normal circumstances, I'd have been wary of anything more than that, but they were really taking a chance on us because we had no credit, no proof of address, no bank accounts, etc.  That sounds pretty outrageous considering you're paying the entire lease term upfront.

My current letting agents charge 1/3 of the monthly rent + VAT in admin fees, plus a £35 application fee.

We were charged GPB60 to get our references checked, and that is all.

Even if the letting agent is actually also a management agent, I don't see why you should pay the fees.  It should be down to the landlord.

I think this is a con (though a legal, widely used con).


Vicky

Thanks for the replies. Even if we paid 1/3 of the rent, that total is still nearly GBP100 less than what they want us to pay! It just seems unreal.

Even if the letting agent is actually also a management agent, I don't see why you should pay the fees.  It should be down to the landlord.

I think this is a con (though a legal, widely used con).

That's the funny thing-- the landlord still pays them a fee as well for renting out their property. They're just trying to get profit from both sides, it seems. DH is wanting to call the agent tomorrow and tell him that he either lowers the rate or we walk away.
I, however, think we should just walk away altogether without bothering to haggle, and go with another flat we saw, and liked. It's with a different agency that is registered with the ARLA (whereas the other one isn't). Besides, that flat has double-glazed windows and the one with the 'con artist letting agent' doesn't.

Walk away.  This is greed, pure and simple.

Vicky

Urrgh!! letting agents are seriously getting on my wick this week....I find some of the chain letting agents are the ones with extortionate fees...and every 6 months they will try and squeeze more out of you for renewing your tenancy for a further 6 months.  Experience has taught me to stick with Independent agencies or rent privately if possible.

Urrgh!! letting agents are seriously getting on my wick this week....I find some of the chain letting agents are the ones with extortionate fees...and every 6 months they will try and squeeze more out of you for renewing your tenancy for a further 6 months.  Experience has taught me to stick with Independent agencies or rent privately if possible.

Good to know. I will definitely ask if they charge to renew. Both of the agencies we're dealing with are independent-- they only have offices in Newcastle, as far as I know. *sigh* Things we wish we knew beforehand....

I think this is a con (though a legal, widely used con).

I agree. Every year when we renew our lease we get charged some huge admin fee (I want to say it was in excess of £50?) which I think is totally disproportionate and outrageous! 

Letting fees are standard.  My husband's an estate agent and even he hates them.  The only thing you should technically pay is the £35pp for reference checks (which is the fee the agent pays to the company that does them), but of course they will charge much more than this.  A well known London agent charges £400 PER PERSON plus reference fee!!!  It's outrageous.  My husband's company charges £100pp, £35pp reference, plus flat £50 check-in fee.  It's disgusting, but it's not like he can personally change the system.  AND his company is actually the cheapest for fees in the area!

Point is - it sucks, but you don't have a lotta choice except to rent privately.

Letting fees are standard.  My husband's an estate agent and even he hates them.  The only thing you should technically pay is the £35pp for reference checks (which is the fee the agent pays to the company that does them), but of course they will charge much more than this.  A well known London agent charges £400 PER PERSON plus reference fee!!!  It's outrageous.  My husband's company charges £100pp, £35pp reference, plus flat £50 check-in fee.  It's disgusting, but it's not like he can personally change the system.  AND his company is actually the cheapest for fees in the area!

Point is - it sucks, but you don't have a lotta choice except to rent privately.

Yeah, the letting fees are standard, but they differ widely! When we were renting last year, we were quoted fees between £50 and £300! Foxtons were particularly galling with their demands.

This year when we renewed, Hamptons charged us £27 documentation fee I think and that's it.

Whooooo!!! I'm so happy right now 

I called the other agent this morning and I told them we were prepared to rent another flat but I wanted to check to see what their fee is. The agent said their admin fee was a half month's rent + VAT (same as the other). The agent put me on hold and spoke to her manager, who offered to cut our admin fee to GBP150 if we rented with them.
So we called the first letting agent and told him that, and after speaking with his manager, he said they would be happy to match the other company's offer. Woot!! We just saved ourselves GBP144 AND we get to move into our first-choice flat. We sign the papers today.

Today is already a good day.

I'm confused now. So are you renting the flat you really, really liked and was much nicer? Or the one with the agency that wanted to charge you out the wazoo?

I'm confused now. So are you renting the flat you really, really liked and was much nicer? Or the one with the agency that wanted to charge you out the wazoo?

 

Both. She negotiated down the fee with the agency who wanted to charge her out the wazoo. 

 

Both. She negotiated down the fee with the agency who wanted to charge her out the wazoo. 

Correct.

And somehow we convinced Barclay's to give us a bank account today with only our passports and tenancy agreement (RBS refused), and we qualified for a premium account and a credit card straightaway (though we don't want the credit card just now).