Why so many new Letting Agents? What's going on?

[stavros1]

Here's something for all letting agents on Landlordzone:

Here in Cheltenham, letting agents are springing up every week! Every week in the local paper there are at least two or three new agents, either completely new letting agents or estate agents not having sold any properties now doing lettings! We are approaching over 40 letting agents when this time last year, 28 or so.

The local newspaper here (we only have the one) has apparently lost masses of advertising revenue and is now doing full page ad deals, buy a page, get a page free. Its unheard of for letting agents to take out full page ads in this town but the Thursday property pages are flooded with letting agents ads.

I would be very interested to hear from other agents about what is going on in your particular area?

Of particular note or concern is that agent rates are being forced down. We are now seeing "we will beat any written quote" management fees in gloucester to a flat rate of £34.99 or £39.99 a month. Tenant finder fees a year ago we could easily quote 80% of the first months rent for a tenant finder and 13% management. Now everyone seems to be offerring it for 50% of the first month and management rates as low as 8%.

Whilst this is probably good news if you are a landlord - beware, and choose your agent carefully. Im convinced estate agents out there now doing lettings are only doing so becuase they are not selling houses and mortgages but what will they do when the property market picks up agin in the future? Drop lettings again like a hot brick? What kind of service will be offerred ultimately?

Whilst you have to appreciate that they are business people looking out for their own business and I dont have an issue with anyone doing what they can to keep their business going, this driving down of agent rates is not good news for agents - especially those who give a good service at a good realistic price. Those of us who do solely lettings and run good, ethical, hardworking businesses will know what hard work is involved at times and here at least all these new letting agents starting is making it harder and harder to charge a fair price for a fair days work.

The property market here is flooded with properties, particularly houses - rightmove alone shows over 1100 available rental properties within a two mile radius of cheltenham town centre. But are the tenants there to meet what I feel is now a gross over supply of properties. On the one hand we have never had as many available properties on our books as we have now, we have recently been very busy doing viewings but the takers just dont seem to be there like before. its as though there is such a huge choice out there if you are a tenant but not good news if you are a landlord? Tennats are frequently telling us they have 20 or more properties to view. Its getting harder to let the properties we have and as an agent we only have good quality properties in good order and condition - no tat, no undesirable flats or houses.

So what is going to happen? The media in certain areas is still shouting about a massive increase in rental demand. Talking to fellow agents in this town we are not seeing it despite our town having always had an excellent rental market, very large employers, large university - everything a rental market should in theory demand.

These new agents setting up - what are they seeing? Is it just a case of estate agents not selling and having to do something to keep going or is there really going to be a mass increase in rental demand?

Im sure, like I say, this is good news for landlords as far as agent rates are concerned, however will they get the service ultimately. I dont feel its good news for letting agents right now but I would be very interested to hear your views as a letting agent and what is happening in your particular area?

[Rebecca12]

I think you've made some excellent points. I'm based in central Scotland and the market here is the same - new agents appearing every week, lots of properties available taking much longer to let without the increase in rent that the media report.

You may be interested to learn, however, I too am a new agent. I've been a landlord for over 10 years and bad service with a local agent made me decide years ago to manage my own properties. Over the years people have asked my advice and to manage their property and it was an area I was keen to develop. I am now ARLA qualified and in it for the long term.

I personally think regulation might weed out those who are committed.

[stavros1]

Couldnt agree more. Regulation would be excellent and we are all in favour of it here. We are a relatively new business 3 years so obviously we started in a better but still competitive market and working very hard. I wonder if these new agents are aware how hard it is to obtain landlord instructions - there are many internet sites promoting setting up a letting agency and reaping the rewards but dont actually tell you that it can be pretty hard work too!

[lorenzo]

I suppose the lettings agency business ticks a lot of boxes for someone looking for a recession proof business.

But those jumping on the bandwagon now looking to undercut everyone else creates a bit of recession in prices.... ****ing stupid!!

£40 a month? Surely the dole would pay more after taking into account expenses? IIRC one of the other agents here sating that office running expenses were 5.5% of gross rent.

I'm not so sure it will be to LLs benefit. Surely service level must decrease markedly.... surely service must be inadequate at such prices? Surely the lowly status of LAs (not my opinion, I think a good one is worth every cent) will be further ruined by all this.

Gawd I'm happy to be in my business. :rolleyes:

Regulation - hmmmm. I come from a country that has quite strong regulation. The owner must be diploma level and every employee must be certificate level. The overall standard there is not much better than here.

<edit to add> ...but regulation certainly couldn't hurt. (I'm in favour)

[jeffrey]

Regulation often:
a. adds £££ to the costs of law-abiding and efficient firms; but
b. has no perceptible effect on quantity of the less punctilious.

Also, Regulation implies Regulators. Who pays for them? -see item a.

[stavros1]

I think service levels will suffer. one thing we as an agent are absolutely rigid on is our property inspections and i know countless landlords paying monthly management fees to agents who have never done one yet are happy detach themselves from all responsibility when a property is trashed. Im always happy to say to landlords that they will get their property inspections done and they get done without fail. I think the bad agents out there just look forward to the recurring management income but i feel you still have to work for it!

[lorenzo]

b. has no perceptible effect on quantity of the less punctilious.

As per my post above - I can vouch for this.

What is the answer? Straight out laissez faire doesn't work... as the finance sector just demonstrated to us all.

[carvjo]

Here's something for all letting agents on Landlordzone:

Here in Cheltenham, letting agents are springing up every week! Every week in the local paper there are at least two or three new agents, either completely new letting agents or estate agents not having sold any properties now doing lettings! We are approaching over 40 letting agents when this time last year, 28 or so.

The local newspaper here (we only have the one) has apparently lost masses of advertising revenue and is now doing full page ad deals, buy a page, get a page free. Its unheard of for letting agents to take out full page ads in this town but the Thursday property pages are flooded with letting agents ads.

I would be very interested to hear from other agents about what is going on in your particular area?

Of particular note or concern is that agent rates are being forced down. We are now seeing "we will beat any written quote" management fees in gloucester to a flat rate of £34.99 or £39.99 a month. Tenant finder fees a year ago we could easily quote 80% of the first months rent for a tenant finder and 13% management. Now everyone seems to be offerring it for 50% of the first month and management rates as low as 8%.

Whilst this is probably good news if you are a landlord - beware, and choose your agent carefully. Im convinced estate agents out there now doing lettings are only doing so becuase they are not selling houses and mortgages but what will they do when the property market picks up agin in the future? Drop lettings again like a hot brick? What kind of service will be offerred ultimately?

Whilst you have to appreciate that they are business people looking out for their own business and I dont have an issue with anyone doing what they can to keep their business going, this driving down of agent rates is not good news for agents - especially those who give a good service at a good realistic price. Those of us who do solely lettings and run good, ethical, hardworking businesses will know what hard work is involved at times and here at least all these new letting agents starting is making it harder and harder to charge a fair price for a fair days work.

The property market here is flooded with properties, particularly houses - rightmove alone shows over 1100 available rental properties within a two mile radius of cheltenham town centre. But are the tenants there to meet what I feel is now a gross over supply of properties. On the one hand we have never had as many available properties on our books as we have now, we have recently been very busy doing viewings but the takers just dont seem to be there like before. its as though there is such a huge choice out there if you are a tenant but not good news if you are a landlord? Tennats are frequently telling us they have 20 or more properties to view. Its getting harder to let the properties we have and as an agent we only have good quality properties in good order and condition - no tat, no undesirable flats or houses.

So what is going to happen? The media in certain areas is still shouting about a massive increase in rental demand. Talking to fellow agents in this town we are not seeing it despite our town having always had an excellent rental market, very large employers, large university - everything a rental market should in theory demand.

These new agents setting up - what are they seeing? Is it just a case of estate agents not selling and having to do something to keep going or is there really going to be a mass increase in rental demand?

Im sure, like I say, this is good news for landlords as far as agent rates are concerned, however will they get the service ultimately. I dont feel its good news for letting agents right now but I would be very interested to hear your views as a letting agent and what is happening in your particular area?
We let our property via an estate agent turned letting agent, and it has had nightmareish results. They lied about refrences, jobs, age, and ability to pay the rent. They allowed the tenants to have cats in the house. Managed to get the tenants to leave, but we have had flea infestation, carpets to replace whole house to be cleaned and sprayed. Never again. In future we will either self manage or use a letting agent with membership of ARLA.
We managed to relet it via another letting agent, no problems with him except two weeks after the new tenant moved in she was bitten by fleas, and wants to end the tenancy.
We dont know what to do next.
Any help or advice would be very gratefully received.

[stavros1]

We had the same problem. For £75 we got the council out for the tenant at our cost. Showed goodwill and the tenant was happy (although the council said there were no fleas in the property!!!)

[carvjo]

We had the council out also, but the tenant was not pleased when the council suggested it would take 3 weeks before the fleas were likely to be dead. I do empathise, with her, but feel she exaggerated the extent of the problem and bites. She had some marital difficulties, which may have contributed to the situation. She has only been in the house for 2 weeks, and has signed an AST. We have refused to allow her out of the tenancy until we have found a new suitable tenant.

[Lawcruncher]

I think it is possible to have regulation without regulators.

[Rebecca12]

Its legislation for Scottish LL's to register with the local authority and high degree of them do, but the local authorities don't have the budget to police this. (not too difficult to find those flying under the radar as they advertise in the local press every week)

However, the fact that many LL's do comply and its easy to check online if they are registered then gives tenants a choice to the kind of LL they rent from. I think regulating agents may do the same?

[Poppy35]

im in the South West and have never known a market it in 13 years.

However even though there is a surplus of property it tends to be at the higher end of the market (1000 pcm +), whilst 4-6 months ago we were average 30-40 lets a month it has now dropped to about 20 - 30 so we are still busy, we have approx 70 properties up for rent however will certainly not drop our fees, we dont need the business at the moment and therefore are fortunate enough to be a little picky about the properties we do take on.

someone called me the other day and ask about our fees and were the same as xyz lettings down the road - i said it depended what their fees were - he quoted me £150 plus vat for a let only service - I informed him our fee for his house would be at least 3 times that so he declined - am I bothered? dont think so! I really dont know how some agents survive to be honest, our fees are fair and you get what you pay for in my opinion.

My major concern will be how much business will we lose next summer if the sales market picks up and thus our larger properties go back on sales market, ten of those at £100 per month makes a dent in our income!

[stavros1]

We are loathed to drop rates but when there is this much competition now and the new agents literally giving it away, there is little choice to secure the work. It wouldnt matter if the property was a less desirable one or one considered harder to let, we would stick to our rates, however sometimes you have to take the approach that some business even at a reduced rate is better than no business!

[My3kids]

In all types of business there is competition. New agents are always being slagged off on this forum and the assumtion is that they are crap and i'm sure some are. If experience agents offer such good service and value for money then what's the problem. Surely if you are there for the long haul then you will prevail in the end while the rip off don't know what they are doing new agent dwindles away.

[P.Pilcher]

It would appear that in this long anticipated downturn in the property market a new alternative has developed. Wheras in the early 90's when a houseowner was obliged to move, he took the price drop on the head and did his best to obtain a similar reduction on the new property. Since that time the whole country has become much more used to the idea of letting properties. Now, when a person needs to move, if they can't sell their old home, they just let it out until better times bring better prices. If they have some equity in their home, then getting a BTL mortgage isn't too difficult so they are in the market where they want to move to getting a bargain property knowing that their actions have preserved the value in their old home. This is providing much more work for letting agents - hence so many new ones are jumping on the bandwaggon and rents are falling. I have just managd to re-let one of my properties and have had to drop my rental to close to 2002 levels.

P.P.

[stavros1]

The main issue is why the new agents feel the need to slash rates. The local paper here had adverts offering to beat any quote and management/tenant finder rates at an all time low. Yes we have confidence in our pricing structure and our service, however when you are now 30% plus more expensive than the new starters you start to think....

There is fair price for a fair days work by a good agent with good service and standards, however with so many landlords shortly coming to the end of their fixed rates they are looking at all their expenses are one cannot blame them for possibly going with the cheapest agent. One wonders next year when a lot of ours are coming out of ther fixed rates, on properties which have fallen in value will they be able to remortgage? And if not, are they going to look at all their costs involved? Do any letting agents for example fear that they may lose the management work due to some landlords looking closely at their sums and perhaps choosing to manage themselves? Will this mean loss of managed work for lettings agents? who knows.

We have another business in a different sector that will hopefully weather the storm if lettings in our area does become very lean, but wondered if letting agents out there were thinking outside the box as to additional revenue streams?

[Poppy35]

however sometimes you have to take the approach that some business even at a reduced rate is better than no business!

i quite agree but its nice to be able to be choosy about what you take on, rather than take on tat and then struggle to let it.

We have in fact last month put our fees up for new instructions and this week put our admin fees up for tenants - we were quite low anyway compared to the competition.

I agree with P P comments totally - this is where most of our new business is coming from along with all the landlords buggering off to Dubai for some nice weather and tax free income!!

[johnboy]

. New agents are always being slagged off on this forum .

I think you will find they are (mostly) only slagged off when they ask the most basic questions which they should already know if they are already trading as agent because by then it is too late for a lot of issues.

Everybody has to start somewhere but a certain level of knowlegde is required before you start trading otherwise problems arrise which the "agent" could have advoided and then it just reinforces the bad reputation that agents get which then reflects on the good ones.

[Esio Trot]

Regulation often:
a. adds £££ to the costs of law-abiding and efficient firms
Regulation also restricts entry into the market of new businesses.

One of the biggest positives, from a letting agents point of view, is that with entry restricted it should provide for the existing players to command increased fees that will more than cover the costs of compliance.

Although house sales, you only have to look at the fees charged by realtors in the USA to see the benefits of qualification dependent regulation.


I think service levels will suffer. one thing we as an agent are absolutely rigid on is our property inspections and i know countless landlords paying monthly management fees to agents who have never done one yet are happy detach themselves from all responsibility when a property is trashed. I'm always happy to say to landlords that they will get their property inspections done and they get done without fail. I think the bad agents out there just look forward to the recurring management income but I feel you still have to work for it!
Trouble is, most landlords don't think further than the fees charged. I would say that the first question asked by any landlord enquiring about using us is, "What do you charge for managing my property?".

It is the exception that proves the rule should any landlord ask something along the lines of, "I've got a property I want managed. What do you do to protect my investment and look after my interests?"

We are also seeing increased competition from former estate agents, who are also providing a cut-price service. To counter this we have reduced our headline set-up and management fees (as this is what we get asked about) but for the first time we have introduced a standard % mark-up (minimum of £20) for any maintenance undertaken. Also, our standard inspection cycle used to be 3-monthly, with the first one about a month after they move in. We have reduced this to 6-monthly and also introduced the word "endeavour" to our commitment on inspection timings and don't mention that the first will be done after a month of tenant moving in. Inspections are expensive, reducing them by over 50% saves masses of staffing costs.

[homes4let]

Im of the opinion that most agents commission is too high anyway. Even the ones that charge 5% normally hide addtional costs in the terms and condition to make up the shortfall.

In addtion to this most agents will charge the tenant (s) large administration fees at the start of the tenancy agreement and at renewal time. This covers costs of the inventory and in lots of cases any inspections. Then your find that most agents will charge a landlord application fee which is usually £100 minimum.

In addtion to this, you will get commission off your insurance sales and your EPC provider. Then I wouldnt be surprised if most agents took a percentage off their contractors.

I beleive that most landlords are overcharged and the true value of an agent is when things go wrong. However, i think your find that some agents will have a menu of charges that apply to a landlord in this scenario anyway eg £10 for a letter, £20 for a visit, £100 per hour to goto court etc.

More competition will hopefully give Landlords back some choice and value. We have one set fee, no other charges at all. We dont even charge the tenants a penny in fees. I wouldnt be falling over myself to catch a landlord whos only interest was our management charge because experience has taught me that they will be the first to refuse repairs when required.

[jeffrey]

We don't even charge the tenants a penny in fees.
That's good, because you have no power at all to charge T anything. You're not T's agent, are you?
Also see Accommodation Agencies Act 1953 re unlawful charges to prospective T!

[homes4let]

Confused????

Think your find that most agents charge an administration fee to tenants and in some cases renewal fees!!!

Cant remember seeing anything unlawful against that.

I know its unlawful to charge a tenant for registering their details but unless something has sneaked pass me recently then I stand corrected.

[jeffrey]

Confused????

Think your find that most agents charge an administration fee to tenants and in some cases renewal fees!!!

Cant remember seeing anything unlawful against that.

I know its unlawful to charge a tenant for registering their details but unless something has sneaked pass me recently then I stand corrected.
Section 1 of Act can be summarised thus, using subsection numbering of original:
(1)(a): Criminal offence to demand/accept money for noting prospective T's details/requirements.
(1)(b): Criminal offence to demand/accept money for supplying particualrs of houses to let.
(1)(c): Criminal offence to advertise house as 'to let' unless with owner's authority.
But it is not an offence under a or b if Agent (A) is paid by owner.

So A has no power to charge T. Even for a reletting, on what basis can A claim from T any money for A's fees?

[Poppy35]

i think what homes4let means is charging an admin fee which covers costs of referencing, contribution towards tenancy agreement.

this does not come under

(1)(a): Criminal offence to demand/accept money for noting prospective T's details/requirements.
(1)(b): Criminal offence to demand/accept money for supplying particualrs of houses to let.
(1)(c): Criminal offence to advertise house as 'to let' unless with owner's authority.

[jeffrey]

I think what homes4let means is charging an admin fee which covers costs of referencing, contribution towards tenancy agreement.
Quite possibly so, but T is nevertheless NOT obliged to pay anything. Agent for L should look to L for fees.
See Cost of Leases Act 1958, as well!

[stavros1]

Well I dont know of any agent locally who doesnt charge Tenant Administration Fees - not once has a tenant complained about them. Locally agent fees vary from£50 per person up to £200 with a few agents.
I know you are not allowed to charge for the three things as Jeffrey says but as far as Im aware Administration fees to cover referencing and contracts and application are fine to charge unless anyone knows differently? Am actually looking into this also........
Furthermore, is the tenant admin fee not the tenants' committment to the property? If they withdraw they lose the admin free if the LL withdraws the property, they get it back?

[jeffrey]

T's commitment (if any) is to L, not to Agent.

[stavros1]

Hi Jeffrey - sorry I'm confused now
so are you saying that we and no agent should charge an "administration fee" to the tenant upon reserving the property?
Let me explain our position.
No charge to tenants to going on mailing list sending particulars etc. This is understood.
Tenant views and wishes to reserve a property:

Tenant pays Letting agent administration fee either per person or a total £ to cover referencing, contracts, processing etc. Fully refundable to tenant if LL withdraws the property. Non -refundable to tenant if they do not proceed with the tenancy or if unsatisfactory references or other information comes to light which results in tenancy not being granted.
Are you saying this is illegal?

[oaktree]

Hi Jeffrey - sorry I'm confused now
so are you saying that we and no agent should charge an "administration fee" to the tenant upon reserving the property?
Let me explain our position.
No charge to tenants to going on mailing list sending particulars etc. This is understood.
Tenant views and wishes to reserve a property:

Tenant pays Letting agent administration fee either per person or a total £ to cover referencing, contracts, processing etc. Fully refundable to tenant if LL withdraws the property. Non -refundable to tenant if they do not proceed with the tenancy or if unsatisfactory references or other information comes to light which results in tenancy not being granted.
Are you saying this is illegal?

I'll be interested in Jeffreys answer to this.

I've always charged tenants an admin fee for processing their references and credit checking them. They are asking for that service, we charge them for it

I had a long, long conversation with the local TSO about this and showed her our confirmation of funds letter which all tenants are issued with at the point of wishing to reserve a property, and have to sign, which lays out the reasons for the fees; in what circumstances they will be refunded and, more importantly, in what circumstances they will not be refunded.

It also tells them what is acceptable in terms of references, and what is not acceptable.

I don't see why landlords, or agents, should have to pay the costs for a tenant to 'spin the coin' to see if their references stack up.

[jeffrey]

Again: T has no legal relationship with A.
Think of someone (P) wanting to buy a house. Whom does Estate Agent represent? V! Who pays EA? V!

[stavros1]

I know a few private landlords who now charge a fee to incoming tenants to cover the cost of their referencing. I have also read several property letting/property investment books by large and long term landlords who dont ever use letting agents but still charge the tenants a fee upon reservation.

this is an interesting topic!

[stavros1]

Could one argue Jeffrey that the Tenant does actually have a relationship with the agent, particularly if the agent is managing the tenancy particularly again with overseas landlords? Thanks for your response though - so are you saying charging Admin Fees is illegal?

[jeffrey]

Could one argue Jeffrey that the Tenant does actually have a relationship with the agent, particularly if the agent is managing the tenancy particularly again with overseas landlords? Thanks for your response though - so are you saying charging Admin Fees is illegal?
1. Again: T does absolutely NOT have any contract or other legal relationship with A. Why can no-one understand?
2. A is managing the property, true. but only on behalf of A's client- L.
3. Whilst such payments by T are not illegal (unless there is a breach of 1953 Act), they are therefore not contractually obligatory on T.

[oaktree]

3. Whilst such payments by T are not illegal (unless there is a breach of 1953 Act), they are therefore not contractually obligatory on T.

If an applicant doesn't want to pay an admin fee then that's fine. We inform the applicant that thay can either a) go elsewhere, or b) we will call the landlord and give them the option of either paying for the references themselves or accepting the tenant without references. Can't think I've ever had a landlord take either of these options.

At that point we'd also tell the applicant not to hold their breath waiting for an affirmative answer!

[stavros1]

I think ive got the general gist (jist?) of what jeffrey is saying but whilst i cant speak for every agent everywhere, every single one in cheltenham is charging admin fees. The tenants have no contractual obligation to the agent like the agent/landlord relationship.

Im struggling to understand why Agents dont have an agreement with the tenants? Again Jeffrey is the expert but if we are signing them up, getting them to sign declarations and application forms to proceed with the referencing and checks, does this not form some kind of agreement between tenant and agent?

[jeffrey]

I think ive got the general gist (jist?) of what jeffrey is saying but whilst i cant speak for every agent everywhere, every single one in cheltenham is charging admin fees. The tenants have no contractual obligation to the agent like the agent/landlord relationship.

Im struggling to understand why Agents dont have an agreement with the tenants? Again Jeffrey is the expert but if we are signing them up, getting them to sign declarations and application forms to proceed with the referencing and checks, does this not form some kind of agreement between tenant and agent?
No, no, no, no, no, no, no, no, etc. One day, someone will read my postings.
L has two contracts:
1. Agency Agreement with A.
2. Letting agreement with T.
So A has only one (with L) and T has only one (with L). Geddit?

[johnboy]

All tenantS dealings with the agent are as if the tenant is dealing direct with the L/L.

So if tenant comes into to office and speaks to the agent it is the same as if he was talking to the landlord because the L/L has instructed the agent to act for him. That is why it is important to have a good drawn up contract between L/L and agent at the start which states what he will do and wont.

[lorenzo]

No, no, no, no, no, no, no, no, etc. One day, someone will read my postings.
L has two contracts:
1. Agency Agreement with A.
2. Letting agreement with T.
So A has only one (with L) and T has only one (with L). Geddit?
You'll have to bear with us legal muppets jeffrey, none of us can make heads nor tails of the law or legalese.

I get the no relationship between A and T bit, the clue is in the word "AGENT", but it is a fact of life that As are charging Ts admin & referencing fees.

So I suppose the correct way to go about this is for LL to charge T the fees via A, and for A to in turn charge L?

[My3kids]

Or we could keep things the way they have been for years but don't let Jeffery know.

[johnboy]

Again: T has no legal relationship with A.
Think of someone (P) wanting to buy a house. Whom does Estate Agent represent? V! Who pays EA? V!

Yes but the (P) is not being credit checked (and the costs that may involve) by EA

[jeffrey]

Yes but the (P) is not being credit checked (and the costs that may involve) by EA
...by EA on behalf of client (here, L).

[Lawcruncher]

I've always charged tenants an admin fee for processing their references and credit checking them. They are asking for that service, we charge them for it

1. The tenant does not really ask for this "service". The landlord/agent insists the tenant is checked out. What would you say to a tenant who said, "Thanks, but I won't bother with the service?"

2. If you are providing a service to the tenant then you are acting for both landlord and tenant in the same transaction which must give rise to a conflict of interest.


I had a long, long conversation with the local TSO about this and showed her our confirmation of funds letter which all tenants are issued with at the point of wishing to reserve a property, and have to sign, which lays out the reasons for the fees; in what circumstances they will be refunded and, more importantly, in what circumstances they will not be refunded.

The question has been discussed in other threads as to how a tenant can reserve a property without the landlord being committed. You cannot really do this without a conditional contract. If this is an agreement with the agent, what is the agent promising to do that he has power to deliver?


I don't see why landlords, or agents, should have to pay the costs for a tenant to 'spin the coin' to see if their references stack up.

What letting agents forget (and to be fair to them estate agents do not when acting for sellers) is that a letting agent works for the landlord for a commission. A commission is an agreed fee payable for achieving an agreed outcome however much time the agent spends or whatever expense he incurs to achieve the outcome. It is swings and roundabouts - some properties are let quickly with the minimum of trouble and it is money for jam, but others are more difficult. Estate agents have to put up with time-wasters and people who change their minds; why shouldn't letting agents do the same? It is fair enough to ask a proposed tenant to reimburse the cost actually incurred in obtaining a credit report, but not to pay for the agent's time for "administration" if he decides not to go ahead.