Y Pwyllgor Cydraddoldeb, Llywodraeth Leol a Chymunedau - Rhentu Cartrefi (Ffioedd etc) (Cymru)
Cyflwyniadau Senedd Dialogue
1. Spread the cost out so there's less to pay upfront
I've recently moved to Cardiff for work and found trying to secure somewhere to rent very fast paced and comptetitve. Me and my housemate travelled two hours to view properties on one day, most of which pulled out on the day because they had been secured by other tenants. Consequently, every time we viewed a property we were faced with pressure from the letting agent who would say there was 'no guarentee' the next viewer wouldn't take it. The problem was that they all charged vastly different amounts for their 'admin fees' and because competition for properties was high it was difficult to 'shop' around for a better deal. This, along with needing half a months rent to secure the property, a bond and then the rest of the months rent in advance made things very tight financially. As a condition of being allowed to rent the property we also had to buy a specific 'tenants liability insurance' which was very conveniently offered by the letting agents sister company (and nowhere much else). After already so much expense it was an unexpected extra. I had to use my credit card to pay the fees (and so am now paying even more in interest). I think that even if this Bill makes rent slightly higher each month, at least this is more manageable than having to pay everything up front and might avoid people getting into unnecessary debt. Would be good to see something in the Bill which safeguards rental prices to some extent and perhaps caps how much tenants are charged for the services of letting agencies (even if it is spread out in the monthly rent amounts). All upfront costs and timeframes should be somewhere visible and accessible on their websites too.
Why the contribution is important
It protects tenants while understanding that letting agencies are businesses.
Posted by Respondent 1
Comments
Posted by Respondent 2
Agents insisting on you buying tenants insurance seems worryingly common these days! Just another way to get money... renters don't have a choice to rent. The risk is taken by the landlord, it's absurd that they pass it on to the people providing their livelihoods.
2. Pressure on tenants
Fees are too high and not justifiable. The market in Cardiff means that tenants often accept and pay them because they are desperate.
Posted by Respondent 3
Comments
Posted by Respondent 4
I agree that tenants feel a pressure to just pay fees and not question them as they are too worried about the consequences if they do - including being told to leave.
I appreciate that if fees are banned then this will likely lead to a rise in rents however, in my opinion that would be more manageable. I know how much my rent is going to be each month and I plan and budget around that. I also know that if I was told to leave (due to the landlord wanting to sell the house for example) I would need a first months rent and deposit up front. It is a challenge but I also try and plan for this as well.
However, because frees are so varied and spring up and all sorts of times, often with little to no warning they are very difficult to prepare for.
That being said landlords often put rent up and the cost of certain fees up each year or six months as it is, so if the costs were to rise even more then this could be a real concern for a lot of people.
Posted by Respondent 5
3. View from Ceredigion
I work for homelessness and one thing I see is people being unable to afford upfront costs on properties. If something could be put in place to help them e.g. spreadking the cost over a 6 - 12 month period.
Posted by Respondent 6
Comments
Posted by Respondent 7
I agree with the above.
For those on low incomes there should be a way to spread the upfront costs over a period of time as the initial costs are an incredible barrier.
I think this is the case across Wales.
4. Impact on families
Fees charged to tenants has had an impact on families, resulting in them not being able to afford food and having to resort to help of food banks. Has an impact that they go without heating.
Posted by Respondent 8
5. Rogue letting agents
I remember when I was a student, living in a HMO in Cathays, Cardiff. When it came to moving out of our rented house at the end of our third year, our letting agent tried to charge us £50 for the removal of a mirror. That mirror wasn't listed on our inventory, and in fact actually belonged to one of my housemates. We even managed to find photos from our previous house (from second year) where the same mirror could be seen in the background.
We disputed this from DPS but the process took too long and some of my housemates needed their money back sooner rather than later. We ended up accepting the £50 off our bond just so that we could get the rest of the bond back.
Why the contribution is important
Because letting agents are in a position of relative power compared to tenants who just need their money back. They're able to make deductions from bonds and tenants who need their money back will essentially be forced to accept the deductions in order to get their bond back.
Posted by Respondent 9
Comments
Posted by Respondent 10
Where letting agents falsely or mistakenly charge for items not on the original inventory list, should not the DPS refer the matter to the Police. The possibility of a criminal prosecution would sharpen minds considerably.
Posted by Respondent 11
It's not up to the police to fix the rental market... the Deposit Protection schemes should be able to rectify ths quickly (after all, it's for reasons like this they were set up). But it's so common for renters to accept a 'hit' so they can get the money back as soon as possible, even if it's not the full amount. Which is completely understandable because it's usually a lot of money (when you're already out of pocket for a deposit on the next place) and disputing it often causes more aggro on top of a stressful move.
This sort of story is super common with renters talking on Twitter with #ThatTimeMyLettingAgent... it seems to be an aim for most bad agents to try and get something off it.
6. Disparities in Fees
As a tenant living in the private sector, I have mixed experiences of letting agency fees. I appreciate that setting up tenancies requires a certain degree of work and as with any other service in the private sector, it is not unreasonable to expect a fee in return for this service. Despite that, there are glaring disparities between fee amounts across different agents which do not seem to be justified. Especially when they are supposed to be offering the same service.
I once viewed a property (rent p/m £650) and was advised by a Cardiff based letting agency, that the initial letting agency fees to start the application would cost over £600. When questioned as to why the figure was set at that, I was advised that it was due to the agency producing a tenancy agreement, 'which was an actual legal document'. This particular fee was completely unaffordable when considering a security deposit and a month's rent in advance and as such, I was not able to apply for the property. During this period, I viewed a different property marketed at the same rent level (within the same area) however the letting agency fees were remarkably lower (£150) and as such, I was able to apply for the tenancy and was successful.
Why the contribution is important
The private rented sector is increasingly becoming the only viable option for a diverse range of people who cannot afford their own home or do not meet the criteria for social housing. I feel that some letting agents have heavily exploited this by charging excessive fees in order to maximise their own income. By doing so, they have contributed to making the sector inaccessible, unaffordable and difficult for people who are reliant on it.
Posted by Respondent 12
Comments
Posted by Respondent 13
£600 is a ridiculous amount to request, even considering referencing etc. is probably included.
The tenancy agreements are almost always 'boilerplate', even more so with more terms prescribed by law. While the agent may have paid a lawyer to prepare the precedent for their firm - and good agents usually pay very good and often the more expensive lawyers to do this given their importance - each agreement they produce thereafter takes minutes