With politicians, consumer groups and industry bodies across the lettings sector speaking out against agents who levy fees on tenants as well as landlords, an interesting development in the Netherlands may provide a taste of what is to come here too.
Tens of thousands of tenants in the Netherlands who paid commission fees to an agent to help find them rental property have been given the green light take legal action to recover the money.
The Dutch newspaper The Telegraaf says a ruling by the Dutch consumer authority ACM has outlawed agents from charging both tenants and landlords a fee for agreeing a contract to rent a property.
This ruling has major consequences for property agents who have scored from both sides over the past few years. This means tens of thousands of tenants can claim back agency fees according to tenants' rights campaigner Gert Jan Bakker.
ACM says the practice of charging both landlords and tenants fees is common in major Dutch cities with one month's rent being a standard charge levied on both parties to cover the administrative costs of organising a new tenancy.
The ACM says the new ruling means lettings agents are allowed to charge potential tenants who have approached the firm directly to find a property; however, if the agents are working on behalf of landlords - evidenced by organising visits and placing photographs of properties on websites, for example - then they cannot charge tenants as well.
Comments
It's an obsession because it is wrong. Your training plan is good Simon just need to add meaningful regulation, compulsory cmp and redress and your last comment will never happen.
P Krate - it's double if they both pay the full amount!!
The crux of the matter is: where the landlord and tenant both pay towards say, an inventory, is it double charging or is it splitting the cost
It's an excruciating obsession, which based on past performance is likely to result in more daft restrictions and more insane regulations. Soon, in order to become a Letting agent you will first have to pass Civil Service exams, do a five year internship at HMRC and join holy orders, all of which will give rise to the biggest mis selling scandal of all time.