Letting agents are being accused of double-charging - levying fees on tenants and landlords for the same service - by an insurance company.
Direct Line for Business says its research has discovered both landlords and tenants being charged for services such as checking references and making even minor alterations to contracts.
The research revealed how a South London letting agent charged a landlord £670 for a simple contract extension, which only necessitated a change of date, while the tenant was charged £90 for the same action.
The research also highlighted the variance in fees landlords pay when they let their property through an agent - the average is 11 per cent but the window of fees ranges from five per cent to 17 per cent.
The research revealed the cost of a letting agent completing an inventory on a property ranged from £65 to £300; property visits from £20 to £100; and the charges for managing a tenant's check-out from £30 to £125. Other charges landlords often encounter include paying for the cost of running credit checks on prospective tenants, reviewing references and checking tenants into a property.
Direct Line for Business claims that taking into account agents' fees, taxes and unscheduled costs such as emergency repairs, landlords can easily pay out expenses of 25 per cent of their annual rental income.
Comments
I dont think that agents should charge higher amount. If a tenant is moving into rented accomodation then, the landlord should get the full payment of the house, and the agent should entirely be removed from the process. Leting agents charge enough for agency fes without taking more money off the landlord.
No surprise to me !! Agents should really charge a higher commission rather than try and hide fees or double charge