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Ban on Agents Charging Tenant Fees Proposed

The government is proposing to ban agents charging tenant fees, Sally Lawson of Concentric Lettings comments on a few things they should consider

As a 'good' letting agent that has been a member of ARLA since 1993, who trains and qualifies my staff with recognised lettings and management exams, has registered deposits since before it was necessary through the TDSRA, asks all of our landlords to ensure they have smoke alarms and electric checks done to ensure the safety of our tenants, and runs at a staffing level of 1 property manager per 100 properties (in addition to the new business staff of approximately 4 per branch on average or 6 for a mature branch), I wanted to write a piece to make sure that those considering this  sensitive subject make sure they know what is entailed in letting a property as a letting agent and all the obligations put on us by legislation.

To us, losing tenant fees would result in a 10% loss in total fees, which equates to 2 members of staff in effect. Otherwise we would have to charge landlords (which they won't pay unless they increase the rent) so in my opinion, charging them would simply drive landlords to cheaper non caring agents, or to rent directly, losing the tenant all the protection we offer below.

A normal letting agency outside of London, charges around £250-£350 to a landlord to let a property, so let's assume an average of £300 with an additional fee charged to the tenant for application fees to help share the cost, as a lot of the work we do IS to PROTECT the tenant, i.e. Inventory, Gas cert, good tenancy agreement, deposit registration, getting works done at the property etc.

Here is an abbreviated list of what a letting agency has to do to 'set-up' a let for that price:

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