Check-out inventory fee

Landlord Discussion
1

I used a letting agent to find a tenant for my buy-to-let property. The tenant moved in last Friday, and I have just received my first statement. There is a checkout fee of £50 plus VAT included, which I queried with the letting agent. They responded: “I can confirm that the checkout fee is always charged at the start of the tenancy, and will cover the move-out report for this tenancy, whenever the tenants vacate.”

Is this usual practice?

Thanks

2

unusual from my experience to bill now for a service that may not be used for years. I assume that this is a fully managed service and not just tenant find from you saying it’s your “first statememnt”.

You will have signed a contract which will include their terms. What do the terms say, if anything, about this fee. If the terms mention this up front, then you’ve agreed to it.

You could look at it this way, if the tenant stays for years and you keep the same agent, then it’s likely their fee for this will have increased by the time you come to check out. If so, you’re saving money.

However, if you let this agent go or they go bankrupt them they will have charged you for something they will not be doing.

3

With the soon to be Renters Rights Act, there will be no more tenancy renewals so agents will have to find inventive ways to make ongoing charges☹️

4

Thank you for your responses. I have reviewed the terms and conditions, and there is no specific mention of this in the wording. However, at the beginning of the agreement, there is a list of fees with checkboxes next to them. The checkbox for the checkout fee was ticked, although I must admit I did not notice it at the time of signing.

5

I don’t think that’s a problem. You agreed to pay a checkout fee. You just didn’t agree to pay it when it hadn’t been done to your satisfaction. That’s the normal way business works.

Two options:

  1. Push back on it and demand a refund now saying that you’ll be happy to be billed at the time a checkout is completed correctly. Say you’ll take it to the ombudsman if they don’t refund. Risk souring your relationship with your agent right at the start.
  2. Let it go knowing that it’s already paid for and, if the T stays for years and years, you’ve got a bargain by paying up front. Lose £50’s worth interest in your current account over that period.
6

This is cheeky, and certainly not common (yet). Personally I would challenge it if only to let them know you notice details.

Just be nice about it. :slight_smile:

The tenant could end up staying for years and may not even be checked out with this agent as you may end up ditching them. (Have you read small print in regards to keeping tenant if you do? typically a months rent is required though varies from agent to agent).

7

Charging by deception is not a nice business practice. Hopefully your tenant will stay for many years so a fee of £50 in 10 years time may be very good value. I suspect they may hope you have forgotten you have already paid for the service so either not carry it out or try to charge you again.