Are Apartment Letting Fees Normal?
Hi everyone! I’m a New Yorker relocating to London next month and have come across an apartment that I’m really interested in—assuming it’s still available (definitely not renting blind!). However, the listing includes a lengthy list of potential fees, and I’m hoping someone can shed some light on this. Are these fees typical? I’m assuming they’re additional monthly charges on top of the advertised rent, along with one-time application fees? Since this apartment is at the upper limit of my budget, I’m a bit worried.
EDIT: Just to clarify, these fees are listed under “Tenancy Information” on Zoopla, and I took them to mean fees that I would be responsible for paying!
Here’s the breakdown I found:
- Letting Only Service: 11% + VAT / 13.2% Including VAT
- Renewal Fee: 9% + VAT / 10.8% Including VAT
- Comprehensive Fully Managed Service: 7% + VAT / 8.4% Including VAT
- Lettings and Managed Service (Most Popular): 18% + VAT / 21.6% Including VAT
- Short Term Lettings (Initial term less than 6 months): 25% + VAT / 30% Including VAT
Tenancy Set Up Costs:
– Tenancy Agreement Fee: £375 + VAT (£450 Including VAT)
– Renewal Tenancy Agreement Fee: £250 + VAT (£300 Including VAT)
– Serving Section 21 Notice, Notice to Quit: £250 + VAT (£300 Including VAT)
Referencing:
– Reference per tenant, guarantor, company: £55 + VAT (£66 Including VAT)
– Right to Rent Checks (free under management) per person: £35 + VAT (£42 Including VAT)
Deposit Protection Administration:
– Registering with TDS: £50 + VAT (£60 Including VAT)
Any insights would be greatly appreciated! Thanks!
It sounds like you’re navigating a complex landscape of letting fees, which can definitely be overwhelming, especially when you’re new to the UK rental market. It’s important to understand what these fees mean so you can budget appropriately.
In the UK, particularly in London, it is common for landlords and letting agents to charge various fees related to renting a property. However, since the Tenant Fees Act 2019 came into effect, many letting fees for tenants have become banned, including application fees, admin fees, and renewal fees for most tenancies. That being said, some of the fees you listed may still be applicable, especially if you’re dealing with an agent.
Here’s a breakdown of some of the fees you mentioned:
Letting Only Service Fee: This is typically a percentage of the annual rent and would be paid by the landlord, not the tenant.
Renewal Fee: This fee may apply if you decide to renew your tenancy agreement. It’s somewhat contentious, but it’s a service charge that some agents may still try to enforce.
Tenancy Agreement Fee: This fee covers the cost of drafting your tenancy agreement and can vary widely between agencies.
Referencing Fees: This is a common fee for conducting background checks on tenants and any guarantors.
Right to Rent Checks: While this check is generally required, charging for it is a grey area, particularly under the new regulations.
Deposit Protection Administration: Landlords or agents must protect your deposit in a government-approved scheme; a fee for registering it is not unusual.
It’s definitely wise to scrutinize all the fees and clarify with the agent what you would be responsible for. Ideally, you want to minimize these costs, especially since you mentioned this apartment would be on the higher end of your budget.
I recommend discussing any concerns directly with the letting agent and seeing if some of these fees can be negotiated. Additionally, it might be helpful to research other listings in the area to see if similar charges are being levied by other agents. Good luck with your move to London!
It’s great that you’re being proactive about understanding the letting fees before committing to your new apartment! While the fees you’ve listed can certainly seem overwhelming, they are fairly common in the UK rental market, especially in competitive cities like London.
In London, letting agents typically charge these fees to cover their administrative costs, referencing, and the management of the property. It’s important to ensure that you are fully informed about what each fee entails and whether it’s something you will encounter only once or repeatedly during your tenancy.
One thing you might want to consider is negotiating some of these fees with the landlord or agent, especially if you’re ready to sign a long-term lease. In some cases, landlords may be open to reducing the fees as an incentive for you to rent their property.
Additionally, always remember to clarify if the fees include VAT when discussing them—it can add up significantly. Before you finalize any arrangements, ensuring that all fees are transparent and documented in your tenancy agreement will benefit you in the long run.
Lastly, keeping an eye on the overall market rates for similar apartments can empower you in your negotiations. Best of luck with your move, and I hope you find the perfect place in London!
Insight into Apartment Letting Fees in London
Hello and welcome to London!
Your concerns about the multitude of fees associated with apartment letting are completely valid. London’s rental market can indeed be overwhelming, especially for newcomers. Here’s some clarity on the fees you listed and the typical practices to expect: