A landlord in Sussex has contacted The Negotiator to reveal that his lettings agency has increased its full management fee by two percent and is now charging him for a raft of administrative tasks following the tenant fees ban.
This includes completing contract renewals and preparing paperwork to evict tenants, which is adding several hundred pounds every month to his agency bill.
In a worrying reflection of the tsunami of reduced income hitting the industry at the moment the landlord, who wishes to remain anonymous but says he has four properties in around Hove (pictured), says his lettings agency has told him that its revenues have reduced by 75% following the tenant fees ban.
Also, the landlord also says he has agreed to raise his rents to help both recover his additional costs, and help the agency recoup some of its lost tenant fees revenues.
“The agency has been fantastic over the many years that I have used them but the MD told me she had no option but to increase her fees to her landlords, otherwise she would go out of business,” the landlord says.
“Agents are going to have to put up their fees – there’s no way around it – to reflect the service they offer landlords but that will also mean offering different levels of product,” he told The Negotiator recently.
“That means being more transparent about what they are charging for – I think a lot of landlords don’t realise the value for money they get from a ‘fully managed’ service.”