In the past letting agents have been allowed to charge extortionate rates for their services to both property landlords and tenants alike… Yet this ‘bad behaviour’ has only recently come to light following the Foxton’s case which highlighted the unwarranted rates many letting agents are charging for services which property advisors call ‘non-existent’.
During the case, numerous property investors approached the Office of Fair Trading after discovering hidden clauses within their contracts which enabled letting agents to charge them a fee if their tenant remained in the property let beyond the term of their tenancy agreement.
And in all cases it would seem that these charges were levied regardless of whether or not the letting agents actually played an active part in retaining the tenant…
However, more disconcerting has to be the fact that letting agents are not covered by the provisions of the Consumers, Estate Agent and Redress Act. In the last year alone the number of letting disputes has risen from 300 cases in 2008 to 435 cases during 2009…
For this reason, the Property Ombudsman is now advising all property investors to only use an agent who is a member of a recognised trade association or is a member of The Property Ombudsman scheme. If they are not registered with either, then you cannot guarantee the quality of the services you receive.
Original Article
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Fraser Stirling, Property Mentor DelegateNo matter what the media wants you to believe, property is still the only investment route where you can benefit from an asset that will NEVER go into zero value. Even when I was university I admired properties ability to withstand the economic elements and stay strong, even when other investment forms faltered or failed. X years on, I am now the proud owner of multiple property investments - one of which earns a passive income of £4,680 and my property portfolio is still expanding. Read more
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