Rent + Reference fees

MarkA

MarkA

MarkA

Associate
Joined
23 Apr 2009
Posts
1,532
Location
Caerphilly
Hi,

After speaking to an agency to have a look at a flat. It seems that they want to charge us the normal amount for agency fees (115 pounds) - thats no problem. However, they are wanting to charge an additional 35 pounds in order to get a reference check. This is for every person who is wanting the flat. (even if you are not successful).

So for example: if 5 people want teh place, they are getting 5x35 pounds and once they have chosen a single occupant, you do not get your 35 pounds back. Has anyone heard of this happening before? I thought this 35 pounds was already part of the fees? Are they trying to take me for a ride???
 
MarkA said:
Hi,

After speaking to an agency to have a look at a flat. It seems that they want to charge us the normal amount for agency fees (115 pounds) - thats no problem. However, they are wanting to charge an additional 35 pounds in order to get a reference check. This is for every person who is wanting the flat. (even if you are not successful).

So for example: if 5 people want teh place, they are getting 5x35 pounds and once they have chosen a single occupant, you do not get your 35 pounds back. Has anyone heard of this happening before? I thought this 35 pounds was already part of the fees? Are they trying to take me for a ride???
Click to expand...

I had this £35 charge with prospect for a fee for doing reference check. My reference was never even called or emailed it turned out later on. We got conned :(
 
What type of "checks" warrent £35 and why do you have to pay them?

A quick phone just to ask stuff they would have proberly done anyway :confused:

I'm seeing an increasing number of places that have subject to admin fee or simillar tagged onto them, im surprised its alowed to be done.

A friend of mine wanted to purchase a car but declined in the end because of this 'admin fee' the car place was trying to charge. Car was for sale for £800
 
Last edited:
I used Gumtree while looking for a house. Many of the landlords will still carry out a reference check, one requested £80 each to cover this.

Ended up going with an agency, £147 admin fee and then £50 each for reference and credit check.

Lot of money but can't really avoid it these days.
 
I'm a letting agent and to be honest £35 per person is actually pretty reasonable.. Most agencies (in London) charge from £75+VAT - £120+VAT and some even charge admin fee's on top of this. The reason being, a lot of agencies see referencing as another revenue stream. The usual charge for a independant referencing company to do a full reference and credit check is £25+VAT for a 48hr turnaround..

If you do go with a private landlord, make sure they put your deposit within one of the government run deposit schemes (request the certificate number), if they dont, you can sue the landlord for 3 times the amount you paid.
 
it's usually a credit check, and it doesn't mean if you're not chosen to get the flat you won't get it back, it means that if you don't pass the credit check you won't get it back. If you're paying any kind of fee then the flat is yours provided you meet the criteria
 
Referencing fees are entirely normal. Unfortunately it is simply them passing on the cost the referencing companies charge them.

From experience, both private landlords and letting agents often use them, so simply going private may not allow you to avoid them.
 
That's the trouble with an industry which is so laxly regulated, it means they can screw their customers so they do. Everyone needs somewhere to live, they know that, so you are at their mercy.
 
Pay up front :P I got my admin and referened fees taken off just because I was willing to pay for my flat for a year in full. The interest I would've gained wouldn't've been even half what I saved. If you haven't built up some savings you can always borrow from the parents.
 
rodo said:
I had this £35 charge with prospect for a fee for doing reference check. My reference was never even called or emailed it turned out later on. We got conned :(
Click to expand...

Prospect in Reading are the WORST estate agency I've ever had the misfortune to deal with. AVOID AT ALL COSTS.
 
I really struggle to believe that any agency is doing what the OP suggests and taking multiple applications for one flat, charging them all application and reference check fees and then only letting one of them have the flat. I think there is a level of miscommunication here.
 
rodo said:
I had this £35 charge with prospect for a fee for doing reference check. My reference was never even called or emailed it turned out later on. We got conned :(
Click to expand...
they pass the references on to a credit check company, if they clear you without needing to check your references then what does that matter? you were not conned, the credit check costs £35
 
You must log in or register to reply here.
Back
Top Bottom