The Tenant Fees Ban 2019 – is your agent increasing your monthly management fee?
“If you can keep your head when all around you are losing theirs…”
You may be aware of the impending ban on charging tenant fees, which will come into effect on 1st June this year (Tenant Fees Act 2019). At the time of going to print, we have so far seen FIVE examples of agents writing to their landlords to tell them their monthly management fees are increasing by anything from 1% to 5% due to this change. The majority of the letters we have seen are from Oxfordshire-based agents.
Why are other agents increasing their monthly management fees now?
Because they will have been charging their tenants high administration fees to supplement heavily discounted landlord fees, and now that they are losing this income stream they are passing the costs directly back to the landlord – with relatively little notice – to protect their company profits.
Why is Finders Keepers not doing this?
Our company was set up in 1972 with the ethos of operating with honesty and integrity. We have always charged what we feel is a fair price for the service we offer and so we never had to subsidise our income by charging tenants excessive fees. Whilst we will, of course, feel the nip of the loss of income from tenant fees, this is not significant enough for us to write to all of our landlords now to increase their monthly management fee across the board.
What should you do?
It’s possible – and very easy – to switch agents and it starts with one call to Finders Keepers. Finding the best tenant at the best rent is not an easy task, however a great agent will make this as easy as possible for you. We want the letting process to be stress-free for you and although it might feel like an effort to switch, it’s harder work in the long run to stay with an agent who doesn’t help you reach your goals (but increases their prices nonetheless).
If your agent is increasing their fees without offering a personal, professional service, we are ready to help. Drop in or give us a call to discuss your property – with no obligation. We can explain how we will apply our qualified, dynamic approach to getting you the best tenant at the best rent. 01865 302302.