When Will Estate Agents Fees be Legislated?
Discussion
My house has been vacant as potential tenants have been waiting for the fee waiver from June 1st.
Other big issue is that deposit is capped at 5 weeks.
Previously I would adjust in line with tenant risk profile.
So now 5 weeks is not enough to cover me for all risks- so will likely vet tenants much more heavily and/or push rent up.
Will also insist on no kids and no pets / professionals only - having had some not so good tenants.
New rules just mean some less than ideal tenants will find it harder to get somewhere to rent.
I would prob sell up if not for CGT trap for overseas residents
Other big issue is that deposit is capped at 5 weeks.
Previously I would adjust in line with tenant risk profile.
So now 5 weeks is not enough to cover me for all risks- so will likely vet tenants much more heavily and/or push rent up.
Will also insist on no kids and no pets / professionals only - having had some not so good tenants.
New rules just mean some less than ideal tenants will find it harder to get somewhere to rent.
I would prob sell up if not for CGT trap for overseas residents
Integroo said:
Agents are almost all bandits and add zero value to the tenant, only to the landlord.
y.
In my experience they are bandits - but don’t add value to LL.y.
just been back to UK - inspected my house after last tenant vacated.
Significant deterioration in condition over 2 years and now not lettable despite paying agent and cleaners and decorators $$$.
Work not done well and not returned in original condition
Tenants not billed sufficiently for dilapidations
I may have been billed for work not done
Lack of care and attention from managing agent - despite paying them thousands in fees.
Bloody annoying
Stay in Bed Instead said:
alfaman said:
Will also insist on no kids and no pets / professionals only - having had some not so good tenants.
New rules just mean some less than ideal tenants will find it harder to get somewhere to rent.
Eventually the government will likely legislate to stop you discriminating.New rules just mean some less than ideal tenants will find it harder to get somewhere to rent.
It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
alfaman said:
So I would put up rent to cover all risks - and if no tenants .... exit the market.
It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
Rent will always be dictated by the market though.It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
Can't say I have ever risk assessed any of my business clients.
alfaman said:
In my experience they are bandits - but don’t add value to LL.
just been back to UK - inspected my house after last tenant vacated.
Significant deterioration in condition over 2 years and now not lettable despite paying agent and cleaners and decorators $$$.
Work not done well and not returned in original condition
Tenants not billed sufficiently for dilapidations
I may have been billed for work not done
Lack of care and attention from managing agent - despite paying them thousands in fees.
Bloody annoying
At least as a landlord you have recourse against them and can choose which to appoint. Tenants have no such luxury. just been back to UK - inspected my house after last tenant vacated.
Significant deterioration in condition over 2 years and now not lettable despite paying agent and cleaners and decorators $$$.
Work not done well and not returned in original condition
Tenants not billed sufficiently for dilapidations
I may have been billed for work not done
Lack of care and attention from managing agent - despite paying them thousands in fees.
Bloody annoying
Rent may go up now fees are banned, or may not. However at least landlords are now competing transparently on rent and not hitting tenants with large opaque and uncertain fees.
alfaman said:
So I would put up rent to cover all risks - and if no tenants .... exit the market.
It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
Stop talking deposits, it’s really not worth it. The clowns at the TDS will move heaven and earth to not pay the landlord.It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
Get your agent to offer insurance backed “deposit” so the tenant pays for insurance instead of the deposit, it’s usually 1 weeks rent. It covers rent arrears etc. https://www.zerodeposit.com/
Add tenant liability insurance to your AST, so the tenant is then obliged to insure against their negligence.
It makes life so much easier.
Also consider using a license to occupy as opposed to a tenancy agreement
Stay in Bed Instead said:
Rent will always be dictated by the market though.
Can't say I have ever risk assessed any of my business clients.
Really? I can’t imagine how that would work. I assume you don’t supply physical goods?Can't say I have ever risk assessed any of my business clients.
We insure every credit account, the insurers risk asses them and give us a credit limit for them. We won’t allow deferred payment without insurance.
nikaiyo2 said:
hyphen said:
Huh?
Most businesses undertake due diligence at their own cost. That is the norm.
Most businesses undertake due diligence at their own cost. That is the norm.
Most businesses are not forced to carry on supply of their product even after their customer has stopped paying for it, are they?
hyphen said:
alfaman said:
It’s ridiculous that owners can’t risk assess tenants and protect their assets. Like any business
Huh? Most businesses undertake due diligence at their own cost. That is the norm.
As a tenant I do feel the LL's pain. The £250 to £500 just for choosing the property had to go, it was a joke but I agree with deposits, references etc but again at cost not at some of the inflated prices I have paid.
It's greed isn't it. If the agents had been sensible and not money grabbing then this would not have probably happened. Still, millions of pounds must of been made.
It's like the Unions, I agree with the idea but they got too greedy and asked too much. Businesses were destroyed as were the Unions themselves.
Now we have zero hour contracts etc.
It's greed isn't it. If the agents had been sensible and not money grabbing then this would not have probably happened. Still, millions of pounds must of been made.
It's like the Unions, I agree with the idea but they got too greedy and asked too much. Businesses were destroyed as were the Unions themselves.
Now we have zero hour contracts etc.
nikaiyo2 said:
Stop talking deposits, it’s really not worth it. The clowns at the TDS will move heaven and earth to not pay the landlord.
Get your agent to offer insurance backed “deposit” so the tenant pays for insurance instead of the deposit, it’s usually 1 weeks rent. It covers rent arrears etc. https://www.zerodeposit.com/
Add tenant liability insurance to your AST, so the tenant is then obliged to insure against their negligence.
It makes life so much easier.
Also consider using a license to occupy as opposed to a tenancy agreement
Interesting - does that mean the ‘1 week’ cost of insurance to tenant is an absolute cost to them rather than refundable?Get your agent to offer insurance backed “deposit” so the tenant pays for insurance instead of the deposit, it’s usually 1 weeks rent. It covers rent arrears etc. https://www.zerodeposit.com/
Add tenant liability insurance to your AST, so the tenant is then obliged to insure against their negligence.
It makes life so much easier.
Also consider using a license to occupy as opposed to a tenancy agreement
alfaman said:
nikaiyo2 said:
Stop talking deposits, it’s really not worth it. The clowns at the TDS will move heaven and earth to not pay the landlord.
Get your agent to offer insurance backed “deposit” so the tenant pays for insurance instead of the deposit, it’s usually 1 weeks rent. It covers rent arrears etc. https://www.zerodeposit.com/
Add tenant liability insurance to your AST, so the tenant is then obliged to insure against their negligence.
It makes life so much easier.
Also consider using a license to occupy as opposed to a tenancy agreement
Interesting - does that mean the ‘1 week’ cost of insurance to tenant is an absolute cost to them rather than refundable?Get your agent to offer insurance backed “deposit” so the tenant pays for insurance instead of the deposit, it’s usually 1 weeks rent. It covers rent arrears etc. https://www.zerodeposit.com/
Add tenant liability insurance to your AST, so the tenant is then obliged to insure against their negligence.
It makes life so much easier.
Also consider using a license to occupy as opposed to a tenancy agreement
alfaman said:
Interesting - does that mean the ‘1 week’ cost of insurance to tenant is an absolute cost to them rather than refundable?
There is no legal requirement to obtain a deposit, therefore I cannot see how it would be lawful to force a tenant to pay an insurance premium to cover any loss to the landlord.If you want that, you insure it from the rent you receive.
Integroo said:
Surely this would attract less good tenants who cannot afford a deposit. I would put my pen through any obligation to pay non refundable costs such as insurance in a lease, and walk away if enforced.
Well you’ve already been paying admin fees to the agent ? What’s the difference?Why should the landlord pay for tenant caused damage?
If I rent a car - I may need to take out extra insurance at my own cost to cover myself in case I damage the car - why should renting accommodation be different?
Maybe a block on tenants credit cards would be an idea
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