Is it legal to not refund a letting admin fee?
Discussion
The situation:
Someone I know started the process of renting a property. On Monday he was told by the agent (high street brand) to pay a non-refundable administration fee (£300) in order to for them to do the necessary checks. He paid the money.
Yesterday (Friday), he was told that the property had been let to someone else and that he wouldn't be getting the admin fee returned.
Is this legal?
What can he do about it?
Someone I know started the process of renting a property. On Monday he was told by the agent (high street brand) to pay a non-refundable administration fee (£300) in order to for them to do the necessary checks. He paid the money.
Yesterday (Friday), he was told that the property had been let to someone else and that he wouldn't be getting the admin fee returned.
Is this legal?
What can he do about it?
They will probably say the fee is to register with the agency, not for that specific property, and you can use the completed "administration" against any property with them. Obviously this is to retain potential tenants.
I imagine the police will say "it's a civil matter sir", because a reputable estate agent's tactics is above their pay grade, also fees are in line to be banned anyway.
Are the terms in any paperwork signed? I'd start by writing to them stating you believe it to be unfair, and ask for their formal response. Then consider going the small claims route, obviously do your research first.
edit: The unfairness being in that the prospective tenant is paying the fee in order to rent that property and the agent/landlord is pulling out. If the fee was only forfeited if the tenant pulled out it would be fairer.
I imagine the police will say "it's a civil matter sir", because a reputable estate agent's tactics is above their pay grade, also fees are in line to be banned anyway.
Are the terms in any paperwork signed? I'd start by writing to them stating you believe it to be unfair, and ask for their formal response. Then consider going the small claims route, obviously do your research first.
edit: The unfairness being in that the prospective tenant is paying the fee in order to rent that property and the agent/landlord is pulling out. If the fee was only forfeited if the tenant pulled out it would be fairer.
Edited by Gareth79 on Saturday 4th March 20:15
pingu393 said:
The situation:
Someone I know started the process of renting a property. On Monday he was told by the agent (high street brand) to pay a non-refundable administration fee (£300) in order to for them to do the necessary checks. He paid the money.
Yesterday (Friday), he was told that the property had been let to someone else and that he wouldn't be getting the admin fee returned.
Is this legal?
What can he do about it?
I would like to know the truth of the situation, which the above may well not be.Someone I know started the process of renting a property. On Monday he was told by the agent (high street brand) to pay a non-refundable administration fee (£300) in order to for them to do the necessary checks. He paid the money.
Yesterday (Friday), he was told that the property had been let to someone else and that he wouldn't be getting the admin fee returned.
Is this legal?
What can he do about it?
Tenants sometimes lie or change their minds about renting a property. They rarely then say, "my fault, keep the deposit". It's usually everyone else's fault and they want their money back. The answer "no" usually offends and they start making threats about every sort of retribution they can think of, none of which ever plays out.
13m said:
I would like to know the truth of the situation, which the above may well not be.
Tenants sometimes lie or change their minds about renting a property. They rarely then say, "my fault, keep the deposit". It's usually everyone else's fault and they want their money back. The answer "no" usually offends and they start making threats about every sort of retribution they can think of, none of which ever plays out.
I suspect a bit of this. Especially when the person concerned won't discuss the matter without losing their rag. That's why I only wanted to know the law on the matter. I can then point them to any legislation and leave it up to them.Tenants sometimes lie or change their minds about renting a property. They rarely then say, "my fault, keep the deposit". It's usually everyone else's fault and they want their money back. The answer "no" usually offends and they start making threats about every sort of retribution they can think of, none of which ever plays out.
I'd love to get involved as I love a good cause to fight, but all they are doing is jumping up an down and getting angry when they should be getting even
.Is it possible to hint at which agent it is without breaking forum rules?
The vast majority of agents wouldn't employ this practice. However, there are a few aggressive high street brands who pull all sorts of stunts like this.
Assuming that the story is as simple as you are being told!
The vast majority of agents wouldn't employ this practice. However, there are a few aggressive high street brands who pull all sorts of stunts like this.
Assuming that the story is as simple as you are being told!
FrankAbagnale said:
Is it possible to hint at which agent it is without breaking forum rules?
The vast majority of agents wouldn't employ this practice. However, there are a few aggressive high street brands who pull all sorts of stunts like this.
Assuming that the story is as simple as you are being told!
I don't want to name and shame until I am 100% sure of the facts.The vast majority of agents wouldn't employ this practice. However, there are a few aggressive high street brands who pull all sorts of stunts like this.
Assuming that the story is as simple as you are being told!
Have no fear. If it turns out to be true, you will be in no doubt about who it is.
xjay1337 said:
Vaud said:
Personally I'd start with a "letter before action" giving them 5 working days to return the fees.
I would do that - The fee should be refunded if the deal is reneged by the other party - If you decided to bail then that's your fault..pingu393 said:
Should the letter come from my friend, or from a solicitor? Irwin Mitchell do it for £2, but I'm sure my friend would be chased for more work 'til the day they die.
Your friend can write it. Just use a template. No fancy language needed, just statement of the resolution sought. Vaud said:
pingu393 said:
Should the letter come from my friend, or from a solicitor? Irwin Mitchell do it for £2, but I'm sure my friend would be chased for more work 'til the day they die.
Your friend can write it. Just use a template. No fancy language needed, just statement of the resolution sought. You need to see what was signed and and find out why it's not being returned.
If he failed referencing, for instance, it's probably not refundable. Just make sure he is telling you the truth first.
Agents should really be cracking down on the fees and how they are advertised etc, given the fuss that's been made about them.
They should be registered with one of the redress schemes, so ask the agents what their complaint policy is and start the process. They can get fined by the local council if they are not part of a redress scheme, but I'd imagine they are already if they're a big chain one.
There's so much info out there - https://www.citizensadvice.org.uk/housing/renting-...
Just have a read and see what would be the best next step.
If he failed referencing, for instance, it's probably not refundable. Just make sure he is telling you the truth first.
Agents should really be cracking down on the fees and how they are advertised etc, given the fuss that's been made about them.
They should be registered with one of the redress schemes, so ask the agents what their complaint policy is and start the process. They can get fined by the local council if they are not part of a redress scheme, but I'd imagine they are already if they're a big chain one.
There's so much info out there - https://www.citizensadvice.org.uk/housing/renting-...
Just have a read and see what would be the best next step.
Slagathore said:
You need to see what was signed and and find out why it's not being returned.
If he failed referencing, for instance, it's probably not refundable. Just make sure he is telling you the truth first.
Agents should really be cracking down on the fees and how they are advertised etc, given the fuss that's been made about them.
They should be registered with one of the redress schemes, so ask the agents what their complaint policy is and start the process. They can get fined by the local council if they are not part of a redress scheme, but I'd imagine they are already if they're a big chain one.
There's so much info out there - https://www.citizensadvice.org.uk/housing/renting-...
Just have a read and see what would be the best next step.
I've downloaded some Letters Before Action. The Citizens' Advice one is for goods, and it also suggests that a letter of complaint should have been sent before the Letter Before Action.If he failed referencing, for instance, it's probably not refundable. Just make sure he is telling you the truth first.
Agents should really be cracking down on the fees and how they are advertised etc, given the fuss that's been made about them.
They should be registered with one of the redress schemes, so ask the agents what their complaint policy is and start the process. They can get fined by the local council if they are not part of a redress scheme, but I'd imagine they are already if they're a big chain one.
There's so much info out there - https://www.citizensadvice.org.uk/housing/renting-...
Just have a read and see what would be the best next step.
The letting agent is a member of NALS.
Like you say, I need to get the facts, not just the whinging. Not easy when hormones are involved
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