An online lettings business says high street agents are charging tenants up to £600 in non-refundable fees to rent a one-bedroom apartment.
Rentify claims tenants in London are being charged an average of £220 for a one-bed flat, while in Bristol the average fee is even higher at £251.
The most expensive agent was in East Ham, charging £600.
Rentify claims to have surveyed 1,000 letting agents across six cities.
In Liverpool, it said the average was £137, in Manchester £160, Birmingham £164 and Nottingham £185.
Rentify said that the fees are charged for tenancy agreements, reference and credit checks that take typically 90 minutes. Rentify said this means letting agents are charging tenants an average of £146 an hour.
Rentify also says that the average fee for a credit reference agency check is £50, something which can cost agents under 20p when bought wholesale.
Rentify chief executive George Spencer said: “As if it wasn’t bad enough that letting agents charge these unnecessary administration fees to tenants, some of these charges are also passed on to the landlord so the agent makes double the profit.
“These fees lack transparency and are simply unfair. Sometimes they cause tenants to pull out of properties because they have not been disclosed upfront, or budgeted for.
“The Advertising Standards Authority has ruled that these costs must be clearly displayed in adverts alongside rental prices, but there is no onus on agents to make their charges fairer, or better still, remove these unnecessary fees completely.”
Rentify, which displays ARLA, TPO and RLA credentials on its site, offers advertising services to landlords starting at zero cost, which includes listing on Zoopla.
Other tenant-finding packages, which include Rightmove, are £89 and £199. Property management is a standard £65 a month.
It says it does not charge tenants “mysterious admin fees or other such nonsense”.
From this Friday all agents must display fees charged to tenants when they advertise rental properties.
See also today’s blog.
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Comments
@Ray - The look up is performed with the API for Google Maps, so there's no human involvement in the process.
I'm always looking to improve the site though, so I really appreciate all feedback.
Data integrity is really important, and is an area I'm always working on.
If I can help you out in any way, don't hesitate to give me a buzz.
Cheers
It doesn't look very helpful to me; even a rudimentary look at the first property on Google maps would show that there is no building remotely like that in the vicinity.
@Ray Comer
We look up addresses with Google maps. Occasionally, this can result in the odd data discrepancy.
We're not a letting agent BTW
We're a new portal, trying to help agents (and tenants)
@ Matty - Yes, some landlords certainly do take them seriously. My daughter was recently looking for a property in an area that I do not cover and came across a property that seemed suitable and was being marketed by one of the online agents. I went along with her (introducing myself only as "dad") and realised that what we were dealing with was a completely amateur landlord, probably first-time landlord, whose only knowledge about the industry seem to be whatever was being provided by the online letting agent. I decided not to ask directly whether she intended to redecorate the interior, which looked like it hadn't been done for over 10 years, or have the property professionally cleaned prior to any tenancy starting – that would have cost a few hundred pounds - but from the indirect questions I asked I got the strong impression that she thought it was all perfectly fine (she was living there and was perfectly happy with it) Inventory? Yes, I think the online letting agency are going to send us a template… Repairs? Yes my brother will take care of those in the evenings. Rent? The very maximum I can get please!!!
Do landlords really take this company seriously??? 90 minutes, bish, bash, bosh, job done, money please! How about a high street agent who will meet these tenants face to face and sort the wheat from the chaff and do the job thoroughly. Good luck using these net based services, in the words of the late Lou Read, "you're gonna reap just what you sow."
Blah blah blah, were are great and you are not blah blah blah.
Can anyone work out what this bloke is actually saying other than he is cheaper than some agents.
This bull about tenants pulling out of deals just is not true and if it were thank goodness, who actually wants tenants whose finances are so tight a minor and unresearched expense is enough to tip the balance.
Isn't it about time the aaults of this country stopped expecting free best advice from agents employed to look after their clients?
Caveat Emptor or don't they teach that stuff anymore?
And another one
http://www.propertysquirrel.com/property/rent/milton-keynes-47251/#.Um_wXXDIZ-E
Since when does the A556 run anywhere near Milton Keynes - the only one I know of is in Cheshire.
perhaps we ought to check all your adverts.
@ steven keith
"You should check us out - http://www.propertysquirrel.com
We don't charge any fees to list. "
and is that because some of your properties don't actually exist?
http://www.propertysquirrel.com/property/rent/sinclair-court-milton-keynes-mk1-1rb-53018/#.Um_t5HDIZ-E
http://www.propertysquirrel.com/property/rent/sinclair-court-milton-keynes-mk1-1rb-53020/#.Um_vJXDIZ-E
Really? in the middle of an industrial estate in Milton Keynes? I don't think - so unless you built them there in the last hour since I drove past!
A bit misleading don't you think?
@neil "£40 + VAT for three portals per property."
That's really expensive
You should check us out - http://www.propertysquirrel.com
We don't charge any fees to list.
This is nothing more than Rentify seizing an opportunity to attack the reputation of the traditional letting agency model with the current bad press around fees to tenants. It says nothing and changes nothing.
Presumably they hope to gain a few more instructions from it if the the right landlords happen to read and believe.
They are still online letting agents, and we are still traditional letting agents. Some people will prefer one, and others will prefer the other.
20 years in the business
Experience matters not the professional badges
A face to face interview correct signing of the agreements etc is essential. Sight and copy of original ID documents checking bank accounts for spending habits and payment patterns.
Lets come back here in 5 years time!
How can someone sign a financially and legally binding agreement without properly understanding what they are signing without having everything properly explained.
Our charge is between £50-200 admin and this include agreement inventory check in etc.
Our landlords also enjoy the most competitive pricing in the industry along with online access to their files.
No one can provide a truly personalised full management and letting service for £65 a month. There has to be a catch!
Always negatives about letting agents.
Well ask my clients I've had many if them from the start they won't go anywhere else and then I've had the go it alone landlords with portfolios doing the adverts themselves on gumtree and other media including these new fangled online agents and where do the landlords end up in my office fed up worn out preferring us to let the property too busy for viewings not making the right choices and coming to me to help them go through the courts and get the tenants out.
YOU GET WHAT YOU PAY FOR. Rentify is like cheap DIY the finish is not as smooth as one obtained by a reccomened experienced professional!
Our unit costs are £15.50 + VAT for a full profile reference and £40 + VAT for three portals per property. I wish my business model could absorb these costs.
Rentify would do better promoting the quality of their service not slagging off their own professional membership which they are relying upon to give them a sense of credibility
Please let me have details of the 20p referencing - is it provided by a pink unicorn?
"From this Friday all agents must display fees charged to tenants when they advertise rental properties."
Really? Not quite true.
90 minutes to carry out all administration relating to a new tenancy?
To prepare a good, comprehensive inventory can take the best part of a day depending on the size and location of the property!
I can only gather from this article that Rentify do not carry out a particularly extensive service to either their Landlords or tenants.
Rentify had me up until the 20p bit.
Dear oh dear.
Tenants being charged £50 when a credit check is 20p?
I can't ever remember paying that little for a credit check (I'm looking at you Experian).
Not only that but references aren't just a credit check but if that's the only check Rentify makes then perhaps that explains one of the downfalls of an online agent...