A growing number of landlords are reportedly seeing increased letting agent bills as new charges are introduced following the Renters' Rights Act, according to The Telegraph. London agency KFH is said to be charging £12 plus VAT for additional statements, while other landlords have reportedly been quoted up to £300 for RRA compliance audits.
Some landlords also informed The Telegraph that they had been automatically enrolled for insurance and gas checks without their permission. A Goodlord survey found that nearly a quarter of landlords reported higher letting agency fees since the Act came into effect.
Chris Norris of the National Residential Landlord Association stated that landlords are concerned about the significant sanctions associated with errors under the new regulations. He suggested that while some agents might be capitalising on this concern and confusion, others might view the fees as a standard way of doing business.
The Act, which took effect on 1 May, replaced fixed-term tenancies with periodic agreements and removed renewal commissions for agents. The Telegraph reports that some agencies have since introduced charges for routine paperwork, including section 13 forms used for rent increases.
The British Landlords Association previously advised landlords to review their agency agreements for new fees. While acknowledging that the new rules have increased administration costs for agents, a BLA spokesman said these costs should not justify unexpected or questionable add-on fees, as this risks damaging trust between landlords and agents.