What is an admin fee?
An admin fee is a one-off fee for viewing a property, applying to it and/or setting up the tenancy itself. This fee doesn’t include bills, council tax or the cost of £20 to tenants or guarantors for their reference. You are of course able to include the cost of these in the rent if preferred.
We understand there is more work beyond our £49 fee, namely conducting the viewings. However, this, and anything else considered a reasonable fee (gas certificates, electrical certificates, inventory fee, contract signing fee, check-in fee, check-out fee, etc...) are, in effect, one off costs which can be included in the rental amount.
The landlord is in full control of how much rent to charge, and the rent should incorporate the costs of setting up the tenancy.
Why can’t I charge any admin fees?
OpenRent are here to ease the administrative burden of renting a property, as well as minimise fees for both landlords and tenants. Our Rent Now service costs just £49 and includes advertising and tenancy creation, with no further costs for securing the tenancy.
By explicitly banning admin fees, we can advertise all properties as having no admin fees whatsoever, ensuring we attract you the most tenants! Admin fees are confusing to tenants and makes comparing properties virtually impossible. Explicitly listing every such fee that could be charged serves as a big red flag and deters prospective tenants. Our average let time of 8 days is a direct result of this ban!
Benefits of no admin fees
Many of our landlords that used to charge an admin fee find that by using OpenRent they save a significant amount versus using a high street letting agent to find tenants and create the tenancy. By saving on fees in this way they then find they can do without charging tenants anything for admin at all, and still end up comfortably ahead in the deal.
Before we existed, landlords were forced to pay £1000+ to a high street letting agent, and the agent would then also charge the tenants for the one-off admin involved in setting up the tenancy (£500 average in London). These fees were often hidden, and unexpectedly large. They often prey on the fact that tenants are already committed to the property, before being revealed. Admin fees are associated with this set-up, of high street agent double charging, which is no longer a factor with OpenRent. Most landlords are completely unaware of their existence!
Ultimately this policy means more tenants searching for your property, and more demand means properties being let quicker than ever.