Agency

Citizens Advice attacks excessive letting agency charges

Citizens Advice, is asking the government to prohibit the extra charges that tenants often have to pay letting agents additional to rent. A report published by the national charity reveals that letting agents are often imposing unjustified and disproportionate charges for tasks that should form part of the agents’ business of property letting and management, and providing private tenants with poor service.

The report reveals that 94% of the 424 letting agents surveyed imposed up to seven additional charges on tenants, and in some cases these added up to over £600.
Additional to the tenancy deposit and rent in advance, some letting agencies charge a deposit administration fee, a non-refundable holding deposit, a reference check charge, an administration fee, a check in inventory charge, a check-out inventory charge, and a tenancy renewal fee.
It was also found that charges often do not correspond with the cost of the work. For the checking of references clients may be charged between £10 and £275, or between £12 and £200 for the renewal of a tenancy. Further, Citizens Advice found that agents often recover the cost of these services twice, by charging both the landlord and tenant for the same service.

These problems were also highlighted by the results of the Citizens Advice survey of tenants, which shows thar 73% of the tenants asked were displeased with the service provided to them by their letting agent. As well as unjustified extra charges, common complaints included difficulties in contacting the agent, inadequate safeguards for clients’ money and lengthy delays in the carrying out of repairs.
The Chief executive of Citizens Advice, David Harker, said
“Government plans to regulate letting agents don’t go far enough.  They must include a ban on additional charges, which can be a huge barrier for people on low and even average incomes.”

Citizens Advice Report, 21st May 2009