BGN Entrepreneur

Millions of tenants who use letting agents are being ripped off as the market is overpriced and unregulated, consumer groups have warned. According to a recent report by Citizens Advice, many agents operate unchecked and impose unjustified and excessive charges, while providing a poor service. There are pitfalls to avoid when renting a property through an agent.

1. Fees
The majority of letting agents impose charges on tenants in addition to a deposit and rent in advance. Most charge an administration fee and reference fees, which can amount to £200, but others impose a range of sneaky extras, from inventory to deposit-protection charges. There is also a huge variation in level of charges. It should be bear in mind that charging prospective tenants to register their details or to view properties is a criminal offence. No fee should be paid until a property has been found. If an agent acts illegally, it should be reported to Trading Standards. However, there is no limit on fees once a contract has been signed, and the charges often do not reflect the amount of work done by the agent. Moreover, double charging is likely as the agent will also charge the landlord for administrative work.

2. Unregistered agents
Though letting agents are unregulated, about 70 per cent are licenced with a professional body, which means that they must follow certain codes of practice and have a complaints procedure. So it is helpful to find registered agents.

3. Deposit protection
Ever since April 2007, all letting agents have to protect tenants’ deposits in one of three government-approved schemes. Tenancy Deposit Solutions, the Dispute Service and the Deposit Protection Service are the only three legal places for deposit to be protected with.

4. Service failures
According to Citizens Advice, most rental properties are also managed by agents, rather than the landlord, but only 8 per cent of tenants are satisfied with the service. Difficulties in getting through to agents is a repeated source of complaint. Getting repairs dealt with efficiently can be difficult, with many tenants forced to live in unacceptale and even dangerous condition.

If there is a serious problem that an agent refuses to resolve, tenants can complain to the local council’s environmental health officer. However, the tenants must first go through the agent’s own complaints procedure.

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