Posts with tag: letting agent fees

Majority of Letting Agents Could be Breaching Law on Fees

Published On: November 24, 2015 at 4:04 pm

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Last month, members of the Home Sweet Home group went undercover in Brighton and Hove to examine letting agents’ compliance of consumer rights law. Their findings are shocking.

Majority of Letting Agents Could be Breaching Law on Fees

Majority of Letting Agents Could be Breaching Law on Fees

The team of local campaigners found that 80% of letting agents are potentially in breach of consumer rights laws.

Home Sweet Home visited 67 letting agents, finding that 55 offices may not be complying with the Consumer Rights Act 2015, which was enforced on 1st October.

Agents that do not comply with the new rules could face council action and a fine of £5,000.

The group assessed the agents on their membership of Government-approved deposit protection and dispute resolution schemes, and checked the offices for a prominent display of the fees they charge.

Of the 67 offices inspected, just 12 appeared to be compliant with all three. The biggest failure regarded fees, with only 15 displaying a full list of fees in a place that it is likely to be seen.

With so many agents apparently in breach of the regulations, Home Sweet Home plans to contact the branches by letter, stating the changes to the law and recommending best practice regarding the display of fees.

The letters will be hand-delivered alongside Home Sweet Home certificates for the 12 agents that passed all three criteria.

Campaign Leader of Home Sweet Home, Summer Dean, says: “Our aim is to uphold the letting agents’ legal obligation to provide transparency to tenants regarding the often hidden fees they have to pay. Our longer term goal is to create a more open and accountable renting culture in Brighton and Hove, so that people can start to see rising standards here.”1

The group is made up of local councillors, Labour Party members and renters hoping to raise the profile of private tenants in Brighton and Hove. It is supported by the broader organisation Movement for Change, which gives local leaders the power to campaign on issues important to their communities.

Representatives from student unions have also been part of the campaign and are working to create a comparison table of the fees charged by the agents in question.

Lead Councillor for Private Rented Sector Housing at Brighton & Hove City Council, Tracey Hill, comments: “The Citizens Advice Bureau reports that housing is the second biggest issue they deal with, especially regarding the private rented sector, which is growing as fewer people can afford to get onto the housing ladder.

“Poor living standards, rising rents and housing scarcity leave private tenants extremely vulnerable to the housing market.”1

Home Sweet Home hopes to make a difference to the nine million private tenants in England, many living in the one-third of private rental homes that do not meet the Decent Homes Standard. Part of this involves the fair treatment of tenants and landlords by letting agents.

1 http://brightonandhoveindependent.co.uk/undercover-survey-of-letting-agent-fees-in-brighton-and-hove/

Today’s the Day for Change in the Welsh Private Rental Sector

Published On: November 23, 2015 at 9:55 am

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Today's the Day for Change in the Welsh Private Rental Sector

Today’s the Day for Change in the Welsh Private Rental Sector

The day has arrived for landlords and letting agents in Wales to join up to the Rent Smart Wales scheme.

The Welsh private rental sector will experience many changes from today, including the requirement for letting agents to display fees. This was only announced last week, despite being mandatory.

Everyone renting out accommodation in Wales must register themselves and register details of their rental properties from today.

All managing agents and landlords that manage or conduct maintenance on their properties must also apply for a license, pass a fit and proper person test, participate in a training course and adhere to a code of practice as part of Rent Smart Wales.

Landlords that are registered but unlicensed must appoint a licensed agent to manage their properties.

Landlords and agents have one year to comply with the regulations before enforcement begins on 23rd November 2016.

Although the Rent Smart Wales scheme has been known about for a while, the obligation for letting agents to prominently display their fees in their offices and on their websites could come as a shock. The Association of Residential Letting Agents (ARLA) was not aware of the rule until last week.

If you let property in Wales, ensure that you are not caught out by either of these regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welsh Letting Agents Given Just Days to Comply with New Law

Published On: November 20, 2015 at 12:46 pm

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Letting agents in Wales must be aware that from Monday (23rd November 2015), they must display the fees they charge.

Welsh Letting Agents Given Just Days to Comply with New Law

Welsh Letting Agents Given Just Days to Comply with New Law

All agents are under a legal obligation to display their fees. It is believed that many will struggle to comply with the new law, as there has been no prior warning and they are subject to a tight deadline.

The obligation forms part of the Consumer Rights Act 2015, which required a ministerial or commencement order to become law in Wales.

The legal requirement for letting agents to display their fees only applies in England at present, after enforcement on 27th May this year.

The Welsh government made the announcement of the new law with under a week before implementation.

It should also be reiterated that on Monday, landlords and letting agents must register and become licensed as part of the Rent Smart Wales scheme.

Previous communications on the new scheme did not mention the compulsory advertisement of fees or the Consumer Rights Act.

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, advises agents to display a list of all the fees they charge, including any additional fees, charges or penalties.

Fees should be displayed including VAT, and agents must advertise fees at each office and on their website.

ARLA has produced a fees template for its members.

The announcement can be found here: http://i.emlfiles1.com/cmpdoc/6/9/5/5/4/files/334662_consumer-rights-act-2015—duty-of-letting-agents-to-publish-fees—november-2015-2-002.pdf?dm_t=0,0,0,0,0

From Monday, landlords and agents have 12 months to register and become licensed under Rent Smart Wales.

Additionally, the Renting Homes (Wales) Act was passed this week. It introduces two new types of occupational contract, replacing the majority of existing tenancy agreement types. It also requires landlords to make repairs and hopes to offer extra protection for tenants. Landlords must provide their tenants with written statements of their rights.

Agents and Tenants Discuss Lettings Fees

Published On: September 21, 2015 at 10:56 am

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Agents and Tenants Discuss Lettings Fees

Agents and Tenants Discuss Lettings Fees

On Friday, tenants and letting agents met in London to debate the issue of fees in the private rental sector.

With a harsh start, agents told tenant representatives: “If they don’t like our fees, they can go elsewhere.”1

Letting agents, Ombudsman representatives and tenant groups, Generation Rent and Renters Rights, joined up at L’Escargot on Greek Street in central London.

Generation Rent and Renters Rights called for tenant fees to be abolished completely, but agents argued that they are businesses that need to make money and that scrapping fees would cause landlords to increase rents in order to recover the money.

Rosie Walker, of Renters Rights (London), stated: “Now more tenants are aware that they need to be told what the fees are upfront. But we say tenants should not be paying any fees at all.”1 

The Managing Director of property software firm VTUK – which hosted the lunch – Peter Grant reported that recent research by his company reveals that based on a letting agency branch with 50 landlords and 75 managed properties, the average fee profit margin is just £159 per tenancy.

The Managing Director of Rowe Property Services, an independent agency in Hampshire, Mark Rowe, argues that a free market allows tenants a choice.

He said: “We are a business; you have an option but we have to make money. I am not forcing the money out of you. If you want to go for one of my properties, that is what I charge.

“If you want something from someone, you pay for it; surely we are not in a generation now where things are free of charge. I know [campaign groups] say tenants shouldn’t be charged at all, but if we are doing the work, then we should be paid.”1 

The discussion focused on a number of issues, including how agents justify charging fees to tenants and landlords, what would happen to rent prices if agents could not charge fees to tenants and if there is enough transparency over the fees that agents charge.

1 http://www.propertyindustryeye.com/agents-and-tenants-groups-clash-over-fees/

Will Online Letting Agents Destroy High Street Firms?

Published On: September 18, 2015 at 3:48 pm

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Online letting agents may be on the rise, but do they operate much differently to high street firms and do they pose a threat to traditional services?

Industry expert Rayhan Rafiq Omar, of the Real Estate Pundit, says low-price online agents are “now the mainstay of DIY landlords – those who self-manage.”

He says that Upad and OpenRent are the largest in terms of listings on Rightmove and Zoopla.

However, he has uncovered many differences between agents, finding that some put most of their listings on Zoopla.

For example, he revealed that OpenRent has 1,062 listings on Zoopla but just 677 on Rightmove, and Purplebricks has 3,740 on Zoopla with only 277 on Rightmove.

Omar adds: “Online agents are filling Rightmove and Zoopla’s coffers and not truly differentiating.

“Why won’t any of these agents kill off or disrupt traditional agents? They aren’t adding value.”1

He has ranked online agents, with his figures updated on 14th September:

Position

Agent Listings on Rightmove

Listings on Zoopla

1 Upad 703 667
2 OpenRent 677 1,062
3 Urban.co.uk 357 837
4 Visum 311 222
5 Purplebricks 277 3,740
6 easyProperty 246 293
7 Rentify 166 366
8 HouseSimple 129 1,598
9 Makeurmove 126 127
10 My Online Estate Agent 116 0
11 The Online Letting Agents 101 0
12 Lettingaproperty.com 97 0
13 I Am The Agent 61 0
14 Gordon’s The Online Estate Agent 37 0
15 Online Agent UK 27 0
16 Igloo 21 0
17 Tepilo 17 0
18 House Network 15 0
19 LoveYourPostcode 8 0
20 Home Online UK 7 0
21 9yds 6 0
22 Your Online Letting Agents 3 0
23 FindAHomeOnline.co.uk 2 0
24 eMoov 1 0

1 http://www.realpundit.com/home/2014/who-is-the-best-online-letting-agent

Tenants Charged to Register with Agents, But is this Legal?

Published On: August 24, 2015 at 12:54 pm

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Hopeful tenants are paying letting agents upfront fees simply to register with them and look around properties.

Tenants Charged to Register with Agents, But is this Legal?

Tenants Charged to Register with Agents, But is this Legal?

The agents, naming themselves relocation agents, charge upfront fees for registrations and viewings, claiming they do not receive payment from landlords.

Allegedly, by calling themselves this, the agents are exempt from the normal regulations, which prohibit letting agents from charging prospective tenants for registering with them or providing a list of properties.

If letting agents do this, they are committing a criminal offence and tenants can report them to Trading Standards.

But can these firms escape the law by calling themselves a different name and not charging landlords?

It still appears that these agents act on behalf of the landlord, whether they are paid by them or not, in finding properties and booking viewings for tenants.

This dilemma is similar to the for sale by tender side of the sales sector, in which the agent acts on behalf of the vendor but mostly charges the buyer.

Easyletsuk is a firm that apparently operates under the relocation agents name, listing on Rightmove and charging £79 for tenants to see properties over four months.

Another agency, Spacelet lists on Zoopla and charges £79 just to register.

Spacelet’s Claire Reynolds explains the service: “We are not an estate agency or a letting agency, we are property finders and we work differently from the former two types of agencies.

“We are not instructed by landlords and therefore do not charge landlords a commission.

“We are absolutely free to landlords and, in return, they give us discounts on their properties.”1

1 http://www.propertyindustryeye.com/15395/