Admin fee for new letting

Jackobyte

Recently agreed to rent a place in Dublin, and the letting agency are requesting a month's rent worth of deposit and a month's rent which is standard, but also want €100 admin fee. We didn't find the property through a letting agency, it was just listed on daft.

Has anyone ever encountered this before? I'm concerned that it is just them passing on the PTRB fee to us.

D3V!L

This is a common occurance in Germany when renting but there the "admin" fee could be a months rent. I hope the lack of rentals here doesn't promote this practice :mad:

amcalester

This is more likely due to the RPZ legislation, landlords would have typically paid this but now that they are limited in what rent they can charge these ancillary costs are being passed onto the tenant.

I'm surprised more Letting Agents havent introduced these fees as a way of attracting landlords.

VonBeanie

I don't think its common, but it was well flagged when the RPZ legislation came in that this is a potential loophole. I'm surprised the practice has not been more widespread.

Jackobyte

"Landlords are always responsible to pay a letting fee and tenants will always pay a company charge on move in."

This is the line provided by the letting agency when queried about the charge. Thoughts?

amcalester

If you don't pay it someone else will.

I wouldn't be overly pleased with having to pay it but if I wanted the place I'd just suck it up.

__..__

Extra charges going to be the new norm.

Browney7

Have you signed a lease and paid a deposit? How do they propose to enforce payment if you refuse?

Jackobyte

Browney7 wrote: »

Have you signed a lease and paid a deposit? How do they propose to enforce payment if you refuse?

Haven't signed lease, but have paid deposit.

Johngoose

Landlords market, bend over and take it is the new attitude.

Graham

Johngoose wrote: »

Landlords market, bend over and take it is the new attitude.

Letting agency charge.

TheChizler

Jackobyte wrote: »

Haven't signed lease, but have paid deposit.

When were you informed of the charge?

Johngoose

Graham wrote: »

Letting agency charge.

Fair point. What I meant was that if somebody isn't willing to pay, there will be a queue of people who will.

davindub

Jackobyte wrote: »

Recently agreed to rent a place in Dublin, and the letting agency are requesting a month's rent worth of deposit and a month's rent which is standard, but also want €100 admin fee. We didn't find the property through a letting agency, it was just listed on daft.

Has anyone ever encountered this before? I'm concerned that it is just them passing on the PTRB fee to us.

More like passing it to themselves, they are getting paid from the Landlord as well. Usually a month's rent = their fee. I wonder does the landlord know about it?

Anyway as they are acting as an agent for the landlord, you can include it in the RPZ calculation.

whatnext

http://www.psr.ie/Website/npsra/npsraweb.nsf/0/3E3A30981BCC937D802579980035BB2A/$File/Property%20Services%20(Regulation)%20Act%20No.%2040%20of%202011.pdf

See section 90 page 90

Certain provisions to be void.
90.—(1) Subject to subsection (2), any provision (whether express or implied) in an agreement in respect of the sale or letting of land whereby the purchaser or tenant, as the case may be, is required to pay or otherwise bear the cost of the licensee’s fees or expenses in respect of the sale or letting, as the case may be, shall be void, and any moneys paid pursuant to such a provision shall be recoverable as a simple contract debt in a court of competent jurisdiction.
(2) Nothing in subsection (1) shall affect the liability of a person to pay fees or expenses to a licensee in respect of the acquisition of any land where the licensee has been retained by the person to acquire such land and does not also act, in respect of such acquisition, on behalf of the person from whom the land is acquired

Jackobyte

TheChizler wrote: »

When were you informed of the charge?

We were informed of it at the same time as the deposit rate.

__..__

Agencies are going to have to change.
They will now be charging the tenant formfinding a property for them and asking landlord to provide their properties to them for cheaper. They can't make a profit off landlord anymore because of all the admin, so the tenant is going to have to pay.
If that means a change in the model then I'm fairly sure agencies are on that already.
It won't be long either until you see no parking spaces or bins included in rental leases at all.
What you will see is an option for a seperate deal for a parking space. Probably agencies managing those too and charging the person taking the space for the pleasure of finding it for them.

TheChizler

__..__ wrote: »

Agencies are going to have to change.
They will now be charging the tenant formfinding a property for them and asking landlord to provide their properties to them for cheaper. They can't make a profit off landlord anymore because of all the admin, so the tenant is going to have to pay.

Why not though? The costs of supplying and managing a tenancy haven't increased, maybe new landlords have slightly larger mortgages but they're in the minority at the moment. The only thing that has changed is the rate at which income can be raised per year.

Rents were going up because of increased demand, not increased costs.

__..__

TheChizler wrote: »

Why not though? The costs of supplying and managing a tenancy haven't increased, maybe new landlords have slightly larger mortgages but they're in the minority at the moment. The only thing that has changed is the rate at which income can be raised per year.

Rents were going up because of increased demand, not increased costs.

Costs can't be recouped now by charging rent. I imagine agencies want to increase their charges which they will pass to landlords. Landlords can't pass that on so less business for the agencies. Agencies have to adapt.
In fact everyone involved will have to adapt to rent controls. And it is a no win situation for all including tenants.

TheChizler

Costs were recouped up to now though with existing rents surely? What's changed?