Admin fees will be banned !

So…in June this year all letting agency’s will be unable to charge admin fees on rented properties, by law.

This is a very positive move, but I’m cautious about this movement because I think there will always be a repercussion?

I think letting agency’s will end up charging more on top of deposits or landlords will raise rental amounts. Something or someone will do something else to get extra money ! (In my opinion)

* However…. a few agency’s have started to look at an alternative way for tenants to pay deposits also. Because deposits can end up being extremely expensive on top of first months rent and many can not afford to pay both or struggle to pay both. Therefore some deposits are being replaced with ‘Reposit’, this is where a tenant is asked to pay a weeks rent.

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Reposit offers tenants the chance to purchase one weeks worth of rent to secure a property, rather than the usual month in hand or more.

At the same time, the Landlord becomes a named beneficiary on Reposit’s insurance policy and is protected for up to six-weeks rent; anything that a deposit would have covered.

If the tenant then stays in the property for the next year, they need to pay an annual fee of £30.

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Just wondering what people thought of this ?

And should we be celebrating the news of abolished admin fees this year ? 🙂

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Also for people who may be unfamiliar with what many have to pay when moving it currently looks a little like this:

E.g

First months rent : 500

Deposit: 500 sometimes added an 100

Admin fee for single person: 170

Couple: 200

Admin charge for guarantor: 60-80

(Some letting agency’s won’t let you let unless you earn 3 times the amount of the rent. Some agency’s will return admin costs if you don’t get the house some don’t and keep hold of admin fees, and can be from multiple people who have applied.)

Reposit raises £500,000 to offer cheaper deposits to tenants