As I write this Pimlico Flats make no charges for preparing the Inventory, preparing the Agreement, Administering the Deposit, taking References. This will probably change in the near future as we currently do a lot of work for tenants free of charge, which are generally subject to a charge, & little appreciated by our prospective tenants. As a tenant you need to be aware of this work, and how much you are going to be charged for it. Fees are typically:
Administration fee – £300
Agents charge from £35 up to £300 some agents claim this covers the cost of viewings. The average fee appears to be around £100, & is mainly for the preparation of the rental agreement.
Credit check – £150
Fees ranging from £35 per head to £150. As an indication of the true cost, Experian’s ‘Tenant Verifier’ service confirms names, address and bank details for a cost of £10. Banks charge around £10.50 (the fee at First Direct) for a reference.
Inventory fee – £80
Agents routinely add an ‘inventory fee’ – even for unfurnished properties. The typical cost is £50, but can go as high as £80. Some agents double-charge, sending the bill both to the tenant and the landlord (this is illegal). Third Party Inventory Clerks can charge up to 2 weeks rent.
Renewal fee – £100
Most ‘assured shorthold’ tenancies are six month contracts. We at Pimlico Flats allow the tenancy to roll over into a Periodic Tenancy which means that the tenant isn’t locked into another fixed term. Many agents charge a fee every six months to renew the contract – usually around £35 but sometimes as high as £100.
Maintenance fee – £40
Not common – but agent can add an extra 10% (£40 on average) for little more than phoning a plumber.
Insurance fee – £200
Some tenants are pressured into taking expensive contents policies and led to believe that these were conditional upon accepting the tenancy.
Checking out fee – £45
A charge made when you hand back the keys, as high as £45. Not common.
Cleaning fee – £150
The one fee that Pimlico Flats may charge – you receive the flat spotless, so we expect it back in the same condition. There is no charge if you have cleaned the flat, & £25 if you arrange cleaning through us in advance, however if we expect you to clean, & you haven’t our costs may be much higher rushing in contract cleaners.
VAT
All the above charges are subject to VAT @ 17.5% when charged by an agent.
We emphasis that Pimlico Flats do not make any of the above charges, however they are normal practice when renting a flat.
The key point is that you must ask what the charges are before commiting to a Flat, & most definitely before leaving a deposit for a flat, & that these charges must reflect the actual costs involved. If you find yourself on the wrong end of some Unfair Contract Terms the Office of Fair Trading might be able if the 1977 unfair contract terms act has been breached. However by far & away the best approach is to investigate these fees fully prior to commiting to a rental. Otherwise you may incurr unexpected, but valid costs or worse ………….
If you don’t check in advance you may find that you fall foul of one of the scams described in our next blog.
