Although tenants fees aren’t due to be banned until June 1st, we’ve scrapped ours as of this month.
As a specialist agency where lettings do not not form an essential part of our profitability, we’ve never been particularly rakish with fees to tenants. To us, some of the costs imposed by larger corporate agents in recent years have been quite eye-watering and slightly distasteful.
Asking tenants to shell out £500 or £600 might seem like good business, but ultimately those practices have been a spectacular shooting in the foot. And it’s going to get difficult for some high street agents whose higher running costs are very much dependent on a constant churn of rental properties and fees to tenants.
There has been some half that the fees will be passed onto tenants thorough higher rents, but really that would need tenants to acquiesce across the country in strangely submissive union. Somehow we think that it’s unlikely and that tenants fees are simply an income stream that will disappear into the past. In the longer term that will mean high street agents reliant on high volume to adjust their business model, perhaps through shedding staff or only accepting landlords who will also sign up to a managed letting service.
In any event, renting a home through Unique Property Company is now free to all tenants.