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Rather than banning tenant fees, new systems could be the answer
 
There has been much discussion recently about the fairness of fees paid by tenants to agents when renting a property privately, to the extent that even the House of Commons has entered the discussion and is voting on the matter today (13th May). 
 
In the meantime, whilst the debate continues, at Bradleys Estate Agents we have been making huge strides to ensure our fees are entirely fair and completely transparent to prospective tenants.   
 
The discussion that appears to have been adopted by politicians is being debated without any clear understanding of the service that property rental agents provide to tenants. It would of course be a travesty if decisions on reform were made on misinformation. Part of the argument is that a buyer of a property does not pay agency fees, so why should a tenant? The reality is that a buyer does indeed pay for the legal services to be undertaken by a solicitor (conveyancing) and for a surveyor to check the condition of the property.  
 
In a tenancy this is the role undertaken by the letting agent prior to a landlord and tenant entering into a contract. For example, our teams of staff in local branch offices, who conduct the rental valuations, marketing and viewings, pass on the relevant information to a rentals management department – who then conduct the pre-move-in, legal compliance including deposit registration as well as drawing up of contracts.  
 
The notion this process does not have value to the tenant and that the landlord should foot the bill is totally unrealistic. We believe that rather than banning fees altogether, new systems are the answer to cover an agent’s genuine costs whilst being justifiable and fair on the part of the tenant. 
 
With all of this in mind, we have been putting the final touches on a ‘pre-referencing’ system, in conjunction with an independent reference agency, which will aim to enable a tenant to apply for a property and obtain an initial pass of the necessary financial checks before they have even parted with a penny in agents’ fees. The implementation of this system means that a prospective tenant failing their initial reference will not be left out of pocket.  
 
*Lyndon Bent is Commercial Director of Bradleys Estate Agents
 

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