I briefly became a fervent Jeremy Corbyn supporter today after a nasty surprise from our letting agents.
Hours later, that’s subsided. But the exchange did crystallise a few thoughts.
I’m moving out of my north London flat this week. Today an employee of Jigsaws, the lettings agent just a stone’s throw from Corbyn’s north Islington home, told us of their £162 exit fee and £210 (minimum) cleaning fee. The unspecified charges are alluded to in the small print of our contract. It was our responsibility to discover the detail and ask what the charge was likely to be, the agent said when I called her later.
Feelings of both anger and embarrassment that are characteristic of such ‘gotcha’ charges followed. It’s the sort of drive-by shooting that leads to a loss of faith in my brand of happy-go-lucky liberalism. I’m over the hump but now I’m sort of interested in it all.
We got fleeced because of two inequities or asymmetries. One, of information: when we sat down to sign our contract a year ago, the agents knew the hidden charges buried within. We didn’t. Two, of care: to middle-income tenants like us, the fees are a nuisance and a forgettable financial discomfort; but in London’s low-yield rental market, they are crucial to the agencies’ business model.
Researching whether we had any recourse to action I came across the property ombudsman’s website. From May 27 (after we signed), it says, agencies were obliged to “display a list of all fees, charges and penalties.”
That’s encouraging. Transparency should encourage competition between agencies, mollifying and/or formalising the rip-off fees. It may even lead to disintermediation. If prospective tenants knew about hidden costs upfront, they might push to strike deals with landlords directly. If the Airbnb for long-term rentals doesn’t exist already, someone will invent it. And existing players like SpareRoom may take market share.
I’m venting of course. Dodgy estate agents are nothing new and we should have done our homework more carefully. But my (naive?) guess is that by the time my younger siblings and cousins squeeze into the London property market, agencies’ mercenary tactics will be on the way out.