North London letting agency has urged their landlords to up their rent rates to cover increased costs of their tenancy management service as a result of the recent Tenant Fees ban.
The letting agency with branches in Finchley and Whetstone, revealed that it would now charge landlords £240 plus VAT for reference and credit checks on top of other fees- previously paid by tenants costing them £432.
The Guardian reported that Simon Clarke had written to their landlords detailing the new charges and proposed a £20 a month increase in rent rates to deal with the aftermath of the Tenants Fees ban.
The Guardian revealed that it received a letter from a landlord who received an email from Simon Clarke that read: “Assuming you would like us to continue to fully reference and credit check prospective new tenants as and when your property becomes available, we need to inform you that an additional admin charge of £200 plus VAT known as a ‘tenancy set-up fee’ will be levied … and in addition to the letting fee. This is to cover the cost of this essential referencing service moving forward and shall include the right to rent immigration checks.”
The email went on to say: “We are very aware this is a cost which you perhaps have not accounted for and therefore what we propose is a small increase in the monthly rental figure to absorb the effects of this charge. This means increasing your rent by £20 per month, and this is something we will do before we list the property ‘to let’.”
The landlord added in his letter to The Guardian that they would be resisting the suggestion and said they would “rather bear the brunt of these charges, not the tenant.”
In reply to this, a spokesman for Simon Clarke argues that due to the recently imposed Tenant Fees ban their costs for setting up a tenancy has to be passed on. “In this time of increased regulation, particularly the recent rises in landlord taxation, we have advised our clients on how to ensure they can still cover the costs of their rental properties.”
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