Letting agents are accused of introducing new charges for landlords after the Renters' Rights Act came into force. The Telegraph reports that some agencies are now charging separately for services that were previously included in their fees.
These new charges reportedly cover compliance work, financial statements, and administration related to rent increases. The changes come as agents adapt to increased workloads and altered income streams due to the new regulatory regime.
For example, KFH reportedly charges landlords £12 plus VAT for additional financial statements, and some agencies are said to charge up to £300 for compliance audits. Separate fees for completing paperwork when landlords increase rents have also been introduced.
The British Landlords Association has advised landlords to review their agency agreements carefully. While acknowledging the increased administration for agents, the association warned against unexpected charges, stating that such fees risk damaging trust between landlords and agents.
Chris Norris of the National Residential Landlords Association suggested that some businesses might be capitalising on landlords' concerns about compliance. He noted that landlords often rely on agents to ensure compliance, and some agents may be "cashing in on a lot of concern and confusion."
The issue appears widespread, with nearly a quarter of landlords surveyed by Goodlord reporting higher agency fees since the Renters' Rights Act was implemented. However, agents have defended charging for the additional work created by the reforms.
Greg Tsuman, managing director of lettings at Martyn Gerrard, stated that if a landlord wishes to outsource the additional paperwork required for compliance, it is "perfectly reasonable that the agent charges appropriately." He also noted that landlords are facing these additional costs while their profit margins are already under pressure.