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Beware rip-off renting charges – despite new rules

New rules protecting renters from rip-off charges will not be enough to keep them safe – that’s the fear of a leading Tyne and Wear letting agent.

Advertising Standards Agency regulations introduced this week require landlords and lettings agents to be much more transparent about the non-optional fees and client charges they demand from new tenants.

One study, however, showed as few as one in thirty obeying the new rules - and Ajay Jagota of North East property business KIS Lettings is “not convinced” they will protect tenants.

Lettings agents and landlords must now display all fees “prominently” in their print and online adverts, together with details of any other fees tenants may incur during the rental process.

The regulations follow an ASA ruling against Your Move, upholding a complaint that at advert which did not mention a “compulsory administration charge” was “misleading”.

Ajay, who manages properties for 700 landlords from branches in Sunderland, South Shields, North Shields and Welwyn Garden City, said:

“It’s a sad state of affairs when landlords and lettings agents have to be forced to be honest about their fees.

“At KIS we’ve always been upfront about our charges and we’re 100% opposed to sneaky fees and add-on costs- so it’s nice to see the rest of the industry following our lead, albeit reluctantly.

“Unfortunately, I’m not convinced these new rules will do much to protect renters.

One study showed that only 3% of agents are actually obeying them and I’m not

sure ASA have the resources to enforce them.

“This has always been my main concern about any new regulation of the rented property market – rules you can’t actually enforce are no rules at all.

“ASA’s regulations also seem to offer more than enough wiggle room to the unscrupulous – for example, allowing them to not list exact fees if they can argue there isn’t enough space.

“Despite talk of a buy-to-let boom, renting out a property is becoming more and more complicated. Just this week we’ve heard reports that both the taxman and mortgage lenders are starting to take a much harder line against so called ‘accidental landlords’ who rent out a single property due to personal circumstances rather than a desire for profit.

“It’s estimated that as many as 30% of properties are now rented out by landlords like this – and my advice to them would always be seek good professional help to avoid being caught out by rules and regulations like these.”

This was posted in Bdaily's Members' News section by Ajay Jagota .