The hidden fees tenants face when they move
TENANTS are forced to fork out a typical £1,700 when they move home – with almost £300 of this demanded in often questionable fees.
Research by the house share website SpareRoom has found that almost half of all tenants are asked to pay so-called ‘admin costs’ of £298 – money then pocketed by agents and landlords.
In the majority of cases these costs are not explained in detail, but when pressed agents justify them as including a ‘reservation fee’, or going towards costs of drawing up the tenancy agreements and inventories, making credit checks and getting references from employers and banks.
On top of these hidden charges, tenants must typically also pay a month’s rent up front – which on average works out at about £561 – plus a deposit equivalent to 1.5 times the monthly rent demanded.
Gina Allchorn moved into a four-bedroom rental property in Kennington, in South-West London, with three others in September.
They were each forced to pay a £300 administration fee on top of £750 as one month’s rent in advance and £1,125 as a six-week deposit.
The 22-year-old sales executive says: ‘We asked the agency what this fee was for but did not get a straight answer.
‘We were told if we did not want to pay they could soon find someone else who would.’
Gina adds: ‘Together we handed over a total of £1,200. They explained the charge was so high because they needed to do a proper credit check – which ended up taking three weeks.
‘It all seemed an excuse used to squeeze extra money out of us.’
Matt Hutchinson, a spokesman for SpareRoom, says: ‘Most tenants must find a deposit for a new home before they get their last one back from the previous landlord – so adding often unexplained fees of about £300 can make the difference between moving to another property or staying put.’
He believes the extra costs show how tenants are often unfairly treated because they can be forced to go through a rental agency rather than deal directly with a landlord. This process tends to add to the additional fees.
Agents must by law show prospective tenants a full tariff of their fees.