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Yesterday’s Autumn Statement has caused a storm in the private rental sector after Phillip Hammond announced a ban on tenant fees. Landlords are now concerned that letting agents will charge them more to cover the loss in revenue from tenants.
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Many letting agents routinely charge tenants fees for all manner of things, including new contracts, credit checks, and even adding a guarantor to the tenancy agreement. Many also charge landlords and tenants for the same service, so they are effectively being paid twice.
Shop Around for a Cheaper Letting Agent
Landlords can pick and choose which – if any – agent they use. Tenants don’t have the same choice and they are normally stuck paying whatever fees the agent demands. Some letting agents are honest and only charge for things that are an out-of-pocket cost to them, but many charge extra. These agents are typically high street letting agents.
Online Letting Agents Cheaper than High Street Agencies
This is why in recent years, online letting agents and property portals have done so well. Landlords can advertise their properties for less money than they would be paying out if they use a high street letting agent.
The big concern here is that letting agents will hike fees to landlords and landlords will have no choice but to raise rents in return. However, many experts believe that landlords are more likely to switch to a cheaper letting agent instead.
