A controversial public meeting to be held tonight where lettings agents are expected to explain themselves for charging fees to tenants has been given added spice by comments from the Labour party.
The Bristol group ACORN - Association of Community Organisations for Reform Now - is holding a meeting where at least two local lettings agents say they will respond to the group's call for them to explain themselves and why they charge fees to tenants.
The pressure group has already personally visited many other agents in the city as part of a campaign to scrap what it calls extortionate and unjustifiable tenancy fees, to secure the introduction of 12-month fixed term tenancy agreements, and to move towards five year fixed term tenancies.
Now Labour has backed the campaign. Thangam Debbonaire, the party's parliamentary candidate for Bristol West at next year's general election, has waded in.
"Only in the rental market are both sides of the transaction charged - if you buy a house, you don't pay the estate agent anything. These fees are not one offs. It seems to be the norm that if you want to renew your lease at the end of its term, even though this is good for the landlord, you get whacked with another fee" she says.
The two agents attending tonight's meeting are Besley Hill and Piper Properties.
A local Bristol newspaper claims that on average tenants in the city pay £355 to their lettings agents every time they move, with some paying as much as £500. It claims 54 per cent of people of tenants surveyed say they face financial difficulties because of the fees.
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Comments
'Charging tenants fees is relatively new' what do you call relatively new David I've been in the industry a little under 25 years now and they've been about since I started.
Charging tenants fees is relatively new. In doing so, it didn't reduce the charges to landlords. Some fees are justified, but renewal fees and other 'incidentals' are simply wrong, IMV.
It's finally here. Let's see what these agents have to say for themselves. They're a disgrace to the profession.
Fees are valid. As previous posters have said a buyer uses a lawyer to purchase and pays a fee. And we must also remember letting agents are not charities they are their to earn a living so a fair fee is acceptable. If fees for tenants were to be abolished the cost will be put onto the landlord who in turn will increase the rent.
In many parts of the country we visit, fully managed fees have dropped in recent years by agents to keep themselves competitive no longer is 12% the norm more like 8%.
Would a tenant like to be charged every time they call up to regarding an issue that is their responsibility rather then the landlords / agents I think not.
In regards to 12 month tenancy's or 5 years most tenants like the flexibility of a 6 month let as they aspire to other properties much the same way a home owner likes to move.
A (prospective) politician that doesn't know what they are talking about. Well there's a first. NOT!
Letting Agents need to charge a fee as we do not work for nothing. We charge 240 inc VAT at the start of the tenancy. We do not charge at the end of 6 months as the tenancy reverts to a periodic tenancy as carries on. If an agent charges too much then the tenant can go elsewhere. They do not have to rent from them.
In my view these two agents must be mad!
They are in a lose - lose situation.
ARLA and the RICS should be involved to give a little clout to the 'explain themselves'.
David Bennett.
I completely agree, legislation is needed in this industry. All estate and letting agents should be licensed, as are all other professionals working in the property industry. However, this is unlikely to happen as the politicians believe that if they did this, the fees would go up. (Look at the recent article on what agents charge in other countries.) But solicitors are licensed and there is PLENTY of competition in conveyancing. Licence and get rid of some of the cowboys!
I am an agent.
Properties sold at auction attract fees from both buyer and seller.
Why do lettings agents charge tenants a fee - because they can! They get away with it. If a tenant refused to pay a (unjust) fee, they wouldn't be let the property Some fees are justified, but others are simply ridiculous, so the sooner this is sorted, the better. Regulation.
"if you buy a house, you don't pay the estate agent anything." says a [u]Parlimentary candidate[/u]. That's because you need a conveyancer or solicitor to act for you in this sort of transaction; their services were not free to the purchaser the last time I bought a house and the charges were a lot more than the average letting agent. And he wants to help run the country God help us all.
Do any of these people live on this planet
Fees are not charged when you buy a house, because you pay a lawyer hundreds of pounds to prepare and go over the documents for you. When letting a property it is the agent that prepares all of the documents and undertakes a huge amount of admin on the part of the tenant, so it is not unreasonable to charge fees. As to the level of those fees, estate and letting agents are a business, do you pay Burger King what it costs them to make the burger No I think not.
Interesting. I am an agent and have always felt that some of the fees agents charge tenants are to be honest, exorbitant. If we as an industry are going to say that this is the only way we can make money, then there is probably something fundamentally wrong with the industry. Perhaps there are just too many of us chasing not enough properties and undercharging the landlords I do feel that tenants should pay a fee or fees for taking a new property and possibly even upon resigning a tenancy (solicitors would not carry out this work for free), but charges in the region of 500..... can they really be justified
I await the wrath of the industry!