Tenancy application fee...

[RumbleOfThunder]

Off to see a flat tomorrow and already been told by the estate agent that the application fee will be £375. Please tell me this is outrageous and I'm not being unreasonable?! I haven't moved for a few years but sure this was in the region of £50-£100 last time.

[iphonedyou]

RumbleOfThunder said:

Off to see a flat tomorrow and already been told by the estate agent that the application fee will be £375. Please tell me this is outrageous and I'm not being unreasonable?! I haven't moved for a few years but sure this was in the region of £50-£100 last time.

We paid about that, if I recall correctly. Foxtons, London zone 2 - I know the former makes a difference, not sure on the latter.

[PurpleMoonlight]

It's on the high side but they vary wildly.

[oxford drinker]

£250 last week plus £80 "referencing" fee.

[pdrake007]

Sounds about right, the fees have got ridiculous over the years (I've been charged over £60 for renewing a 6 month contract whilst other agents will do it for free)

[Phateuk]

I often wonder what the tenant application fee is actually for? What does the tenant pay for that isn't covered by the fees the landlord pays to the estate agent?

[Chris Type R]

Phateuk said:

I often wonder what the tenant application fee is actually for? What does the tenant pay for that isn't covered by the fees the landlord pays to the estate agent?

A cynic might suggest "a fleet of Minis" ?

[weeboot]

£450 inc vat for me and guarantor.

edited to add list of "general fees"...

1. GENERAL FEES
The Tenant agrees to pay to the Landlord’s Agent
1.1. £25.00 + VAT (£30.00) for any aborted pre-arranged visit to the Property.
1.2. £25.00 + VAT (£30.00) for supplying any written reference to any party.
1.3. £60.00 + VAT (£72.00) for each renewal and/or extension of the Tenancy Agreement.
1.4. £50.00 + VAT (£60.00) per additional account to allocate any refund of deposit to multiple accounts.
1.5. £25.00 + VAT (£30.00) for any refund of a Tenancy Deposit by cheque; no charge is payable when the refund is made via BACS.
1.6. £25.00 + VAT (£30.00) for a replacement copy of the Inventory and Schedule of Condition.
1.7. £60.00 + VAT (£72.00) for each or any Endorsement to the Tenancy Agreement
1.8. A charge of £175 + VAT (£210.00) as detailed in Clause 10.1.1, Part Two of the attached Tenancy Terms and Conditions should the Tenant unlawfully terminate this Agreement.

[Phateuk]

Chris Type R said:

Phateuk said:

I often wonder what the tenant application fee is actually for? What does the tenant pay for that isn't covered by the fees the landlord pays to the estate agent?

A cynic might suggest "a fleet of Minis" ?

This was a geniune question, they do seem to get away with a lot in terms of what they charge - I suppose as long as people pay they will continue to charge. Similar to a post above I've been charged £150 "legal and admin" fee to renew a contract which surely just involves opening a word doc, changing a date, clicking print?

[98elise]

Chris Type R said:

Phateuk said:

I often wonder what the tenant application fee is actually for? What does the tenant pay for that isn't covered by the fees the landlord pays to the estate agent?

A cynic might suggest "a fleet of Minis" ?

I would agree. I'm a private landlord, and I charge my tenants nothing.

They just pay the monthly rent for the time they are there. That's it, no renewal fees etc, just the rent.

[Frankthered]

98elise said:

Chris Type R said:

Phateuk said:

I often wonder what the tenant application fee is actually for? What does the tenant pay for that isn't covered by the fees the landlord pays to the estate agent?

A cynic might suggest "a fleet of Minis" ?

I would agree. I'm a private landlord, and I charge my tenants nothing.

They just pay the monthly rent for the time they are there. That's it, no renewal fees etc, just the rent.

I heartily approve!!

As I said in the earlier thread on renewal fees, I reckon this kind of thing is agents making as much as they can from both landlords and tenants and being enabled by hands-off landlords.

[Chris Type R]

Frankthered said:

As I said in the earlier thread on renewal fees, I reckon this kind of thing is agents making as much as they can from both landlords and tenants and being enabled by hands-off landlords.

Pretty much supply/demand driven. I'd hate to be in the position of renting again.

[soad]

Basically it's a massive con. They are all crooks.

The reason why LA's often charge more is simply because it commits a tenant to the property.

[Frankthered]

Chris Type R said:

Frankthered said:

As I said in the earlier thread on renewal fees, I reckon this kind of thing is agents making as much as they can from both landlords and tenants and being enabled by hands-off landlords.

Pretty much supply/demand driven. I'd hate to be in the position of renting again.

That's a good point, particularly with respect to the tenant application fee, but I do still think that if more LL's were like 98elise, they'd be telling the LA's to stop taking the p*ss.

[RumbleOfThunder]

Pure pisstake as expected then. Viewing is pushed back til Monday now so will check the place out then go all Mike Brewer on those fees if it takes my fancy.

[RanchoGrande]

They charge them because they can, it's just the way it is and it's been like this since I first rented a place when I was at uni in 1998. They had fees for everything and would just take them from your deposit at the end of the tenancy - it's not fair but you agree to it when you sign the contract. Foxtons kind of set a precedent with their high fees and many other agents followed suit. Totally unreasonable really, especially given the fees they charge the landlords.

Loads of other industries charge unfair fees though, letting agents are not unique in this practice. Having said that, I now can't think of any!

[tescorank]

RanchoGrande said:

Loads of other industries charge unfair fees though, letting agents are not unique in this practice. Having said that, I now can't think of any!

Solicitors for picking up the phone!

[Du1point8]

I remember mini driving brigade charging us £380 in 2006 to use them to rent our first property in london.

I queried as to what it was used for, essentially they said if you like the property you will pay it or go somewhere else and someone else would pay it instead.

[Rangeroverover]

We charge £100 + vat........rent4sure who do all our references/credit checks charge us £27:00, the remainder is to cover admin time

[romeogolf]

Definitely seems on the high side of things.

I'm sure superlightr will be along soon to explain why it's totally justifiable and just how much work letting agents have to do, how much regulation they suffer from, how hard they have it etc.