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  • Legal FAQs

    Agent trying to charge monthly no deposit fee

    Hi guys

    Just want others opinions as to what a letting agent is allowed to charge potential new tenants.

    My friend has offered full asking rent and deposit for property advertised as 'No deposit option available'. He's been led to believe that they meet all requirements subject to referencing.

    Agent is now saying he MUST use no deposit option and pay a monthly fee of £48 inc of VAT for every month of the tenancy.

    He has said he is reluctant to pay an ongoing insurance payment and would much rather pay a deposit and have it protected in the usual way. Agent's response is to say there are other interested parties who are willing to pay insurance so will recommend others to landlord.

    Sounds like agent is taking commission so is pushing this 'option', even though it's not an option! Another fee of £60 is taken if tenant fails to allow access for routine maintenance. Is this even legal? .

    Would appreciate comments re how to advise on this. Thank you.

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    Yes these are legal but they will not be shortly when the Tenant Fees Act comes into force

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    David Smith
    Landlord & Tenant Solicitor
    Anthony Gold Solicitors

    Find me on LinkedIn: uk.linkedin.com/in/dsnsmith

    All opinions are my own and do not reflect those of my firm. No comment made should be taken as legal advice and you should consult a solicitor or other legal professional for advice on your specific situation.

    Hi David

    To clarify, is it legal to not give him an option re how deposit is protected even though it is advertised as no deposit option available?

    I understood tenant has the right to refuse entry unless it's an emergency (even if an appointment with correct notice given)?

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    'I understood tenant has the right to refuse entry unless it's an emergency (even if an appointment with correct notice given)?'

    WHY WOULD A TENANT WANT TO REFUSE ACCESS FOR MAINTENANCE??????  TO SUE THE LANDLORD FOR DISREPAIR?????  I WOULDNT WANT TO LET TO ANYONE WITH YOUR MINDSET.

    SECONDLY LANDLORD'S HAVE A STATUTORY RIGHT TO ACCESS UNDER THE LANDLORD AND TENANT ACT 1985 UPON GIVING 24 HOURS NOTICE IN WRITING SUBJECT TO A FEW MINOR CAVEATS.

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    Not sure of the legality with regards to only being able to use their preferred 'No deposit option' It does sound like this agent is pushing for their own financial gain....

    Personally I don't like the idea of these schemes and it's not something I would consider for our offices.

    Unsure which provider this is but £48 per month of the tenancy is crazy!

    Zero Deposit is the main provider I've heard of, but they only charge the tenant equivalent of one weeks rent to cover the deposit https://www.zerodeposit.com/

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    LandlordAgent - thanks for your comments. Agreed, Zero Deposits seem a reasonable option for tenants which is why we've just advertised one of our btl's with this for the first time.

    I'm astounded at the aggressive sales tactic and manipulative behaviour of this agent.

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