A two-office London letting agency has been named by a national newspaper for allegedly demanding a fee of £1,260 to change two names on a tenancy agreement - with the implied threat that the tenant would be evicted if she did not pay up.
Communications executive Cathy May says in the Daily Telegraph that all four residents in the £3,600 pcm rental terraced house in Islington, north London, were evicted by the Next Move agency after questioning the sum.
We were told to pay up or get out. The agency said there were tenants queuing at their door to rent a property like ours May tells the paper.
Abdul Azad, the agency's director, is quoted as saying he doesn't remember the details of the eviction, but said the £1,260 charge was justified. We're running a business, not a charity, he said. The cost reflects our time and energy.
Azad even said he would include his time spent on the 15minute interview with the Daily Telegraph as part of the cost of dealing with tenants.
A rival letting agency based nearby, Currell, was reported by the newspaper to charge £150 per property to cover the cost of administration for all the tenants.
When asked why Next Move charged almost 10 times this amount, Azad responded: I won't answer until you tell me why The Telegraph charges more than The Sun.
The Telegraph has obtained a breakdown of the £1,260 fee, which included an agreement and reference fee for two incoming tenants (£360), a reference fee for the two tenants who were staying (£120) and an amendment fee for the two tenants leaving (£720). It added a further reference fee of £60.
Azad reportedly admitted to the paper that he had a blunt manner with tenants and did not have time for sugar-coating. They're not my friends, he said.
Property professionals criticised the agency when details of the story were tweeted by Estate Agent Today editor Graham Norwood and other industry figures.
These are the people desperate to give our industry a bad name tweeted Michael O'Connor of north of England agency Venture Properties; That's horrendous! I think the fee and the Director's response are equally as awful was the comment from Catherine of Mi-Move, a letting and sales agency in Sutton; while Essex-based financial journalist Samantha Downes commented: can't believe how much agents charge just to rent - local ones £250 for a credit check, non refundable.
.png)
Comments
Tenants don't have a choice of agency as the property determines which agent is approached.
The much delayed Consumer Rights Act (which was due April 2014!) should address this as agents will have to be up front with not only tenants/applicants (as they should be already to comply with the CMA guidelines) but also with landlords who will be able to see what applicants are being charged by which agent, so able to make an informed decision on their choice of agent. Then it will become law but until the CRA comes into force it's just best practice.
People, i.e. tenants would think zero, agents probably something that reflects their hourly plus costs. Most would agree for amending a document it should be no more than 100 outside of London, probably no more than 200 in London. Can we separate the chancers from the real industry professionals.
don't want to pay that - don't use them then!! Like the man said, in other words, if you want a copy of the telegraph then fine, but it'll cost you more than a copy of the Sun. The choice is yours
The ultimate response to that debate would be why should I pay anything
Rather than have a witch hunt race to the bottom with people reporting that 'I was charged 1,260', 'I was charged 950', 'I was charged 475', etc, etc, perhaps the debate could be on what do people think would be a reasonable sum