Administration Fees (Admin Fees)

  • There are various time consuming administrative jobs required to establish due diligence.
  • These jobs are not free in that someone has to pay.
  • Who should pay the costs of: setting up a tenancy, vetting and credit checking?  Presently (2013) parliament is debating the justification for such fees.
  • In Scotland the 1984 Rent Act prohibits administration per-tenancy fees.  There are concerns that England may follow.
  • These jobs cannot all be conducted in-house by letting agencies – some jobs require outside organizations to act, precisely because they must be seen to be independent, i.e. unbiased, such as inventory clerks. The reasoning is that, in the event of a dispute, a court can see that there is likely to be impartiality, since inventory clerks must work to a set code of practice.
  • Others jobs require specialist access to protected data enabling credit checks.
  • The agency pays these fees and recovers them form landlords and tenants.

What are your thoughts?

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