For anyone who might be dealing with a letting agency – or become one – there are some important parts of the process you need to consider. With so many questions to look at and over, though, we’ve broken down five of the main reasons that you might wish to find an answer to.
This should help you decide on your next move without it having to be an overly confusing or arduous move.
What are letting agent fees?
These are extra fees tapped on top of the cost of your rent when working with a letting agency. They essentially charge a finders’ fee for helping you get the property, and it can be quite a substantial sum of money.
This has been common practice in the industry for many years, but the rules are changing and this should see the use of such a platform become illegal in the near future, as government rulings threaten its existence.
What are typical letting agent fees?
It really does depend on personal circumstance, but the UK average for a letting agency fee was around £223. That being said, come people have had to pay upwards of £500; those letting in London could see several thousand pounds being taken as part of the letting agency fees.
Are letting agent fees banned?
Following UK Government proposals released on 1st November 2017, letting agency fees are to be changed. Any fees above rent can now be subject to scrutiny, and could even see the landlord doing so hit with a whopping £30,000 fine.
This is going to be enforced by Trading Standards, so make sure if you are trying to let a property and face this fee request that you take action.
Are letting agent fees tax deductible?
While subject to change due to their pending alteration, you can at present deduct letting agency fees from your taxes. This is set to change as time goes on, of course, and letting agency fees are abolished.
That being said, at the moment if your tax return is due you can easily file it and get the job done amicably. Letting agency fees are 100% tax deductible as it stands, though be sure to check with tax officials as time goes on.
Are letting agent fees legal?
No, not any more. As part of the new and enforced Tenants’ Fees Bill pushed through in the Queen’s Speech in 2017 will mean that tenants no longer have to pay these fees as they are no longer legal. This means that if a letting agency tries to enforce you to pay these fees, you are not obligated to do so.
As ever, you should check with a legal professional to better define your position as the rules change.
Got any more questions about letting agencies or what this means? Then it might be time to look into finding some professional help to make sure you are on the right track.
