How to avoid letting agent and landlord fees BEFORE the ban hits
Renters are still forking out extra to cover the cost of moving house, even though it was announced that they would be banned in 2016
MANY renters are STILL facing ridiculously high letting fees almost two years after it was announced they would be banned.
And as the government appears to be dragging its feet bringing it into law, many renters are still looking for ways to avoid forking out for fees if they have to move before the ban comes in.
The letting fee ban was first announced back in November 2016 but it still hasn't come in to practice.
The good news is that in recent years, a number of websites and online estate agents have sprung up that can help people connect with landlords directly.
According to a YouGov survey of more than 2,000 people undertaken by property portal TheHouseShop last year, 56 per cent of Brits prefer to rent directly from a landlord.
"With letting agents charging hundreds of pounds to secure a property, more and more tenants are cutting out the middleman and going direct to the landlord to save money on fees," says Nick Marr, co-founder of TheHouseShop.
At Upad, tenants pay a £75 referencing fee, with no other charges before or during the tenancy.
The huge savings are driving a big increase in interest from tenants.
Hurst says the number of households OpenRent helped find homes doubled last year to 70,000.
Upad founder James Davis says the company is currently advertising about 1,000 properties. Along with fee savings, he says there’s an added benefit.
"One thing that stands out to tenants is the fact the landlord is doing the viewings. Nine out of 10 tenants would rather meet the landlord than an agent on a viewing."
As well as the chance to see what kind of person the landlord is, Davis says renters have the opportunity to ask about any special requests, for example, having a pet.
Hurst adds that many tenants find private landlords more flexible than agents.
“For example, many landlords are very happy to accept rent in advance if a tenant doesn’t pass referencing or can’t find a guarantor.
"With OpenRent, these things can be arranged between the landlord and tenant without a traditional letting agent blocking it."
You may also be better placed to haggle over price or lease length than you would via letting agent.
While online letting agents charge tenants a lot less, they also charge landlords a lot less – a London landlord could easily be saving £1,000-plus compared with the cost of a high street agent, so your chances of getting them to drop the rent by £50 or buy some new furniture are higher.
By going direct to a landlord, it seems you’re not only going to save big on fees, but you may also stand a better chance of developing a good relationship with your landlord.
Renters could save £300 each when the Government finally bans letting fees, MPs have said, but loopholes could mean other costs could be slapped on through the back door.
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