Landlord tells of rising rents as his management agency cranks up its fees to survive

first_imgHome » News » Agencies & People » Landlord tells of rising rents as his management agency cranks up its fees to survive previous nextAgencies & PeopleLandlord tells of rising rents as his management agency cranks up its fees to surviveOwner of four properties on the Sussex coast tells The Negotiator he is increasing his rents to pay for extra costs and to help ‘fantastic’ agency survive.Nigel Lewis23rd July 20192 Comments1,455 Views A landlord in Sussex has contacted The Negotiator to reveal that his lettings agency has increased its full management fee by two percent and is now charging him for a raft of administrative tasks following the tenant fees ban.This includes completing contract renewals and preparing paperwork to evict tenants, which is adding several hundred pounds every month to his agency bill.In a worrying reflection of the tsunami of reduced income hitting the industry at the moment the landlord, who wishes to remain anonymous but says he has four properties in around Hove (pictured), says his lettings agency has told him that its revenues have reduced by 75% following the tenant fees ban.Also, the landlord also says he has agreed to raise his rents to help both recover his additional costs, and help the agency recoup some of its lost tenant fees revenues.“The agency has been fantastic over the many years that I have used them but the MD told me she had no option but to increase her fees to her landlords, otherwise she would go out of business,” the landlord says.The outcome is the precise scenario that ARLA Propertymark has been predicting would follow the tenant fees ban.“Agents are going to have to put up their fees – there’s no way around it – to reflect the service they offer landlords but that will also mean offering different levels of product,” he told The Negotiator recently.“That means being more transparent about what they are charging for – I think a lot of landlords don’t realise the value for money they get from a ‘fully managed’ service.”tenant fees ban July 23, 2019Nigel Lewis2 commentsDD , RRPM RRPM 29th July 2019 at 9:41 am15-20% on average at most is what the ban on agency fees has cost the sector – 75% is either a lie or they’re one of the unscrupulous agents that has fleeced tenants and why we’ve had legislation to ban it. I suspect that the 2% increase as well as an increase in rent is not only helping Mr Landlord…Log in to Replyjeremy clarke, Belvoir Christchurch Belvoir Christchurch 23rd July 2019 at 10:07 amThe law of unintended consequences or, yet another gov cock up as they completely ignore everyone in the industry and blunder on with their own agenda!There was never any need to ban tenant fees, in 20+ years I cannot recall a tenant saying that they couldn’t afford or wouldn’t pay tenant fees, the correct way would have been to set a cap on the amount that could be charged but here we are 7 weeks down the line and already tenants are paying the cost. The other side of the coin is that we, as agents, used to do a lot for our landlords that we didn’t charge for and now with costs under the microscope we can no longer do so. Politically there is no difference any more between all the parties, blue, green yellow red, purple, they all have the same policies – chase votes and sod the consequences!All I can hope is that Polly and her band of overpaid pen pushers are happy with what they have caused and that someone in gov eventually recognises shelter for what it is and takes every penny of funding away from it – see who squeals then!!Log in to ReplyWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img

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