With effect from 1st November 2013, the Advertising Standards Agency (ASA) has required all letting agents and private landlords to prominently include all information about their non-optional fees that would be charged to tenant applicants in their advertisements of rental properties.

This includes newspaper, internet and any paper copies such as brochures, window cards, window displays etc. This will enable prospective tenants to make properly informed choices of the likely costs of moving into a rental property and avoid being misled; which is in compliance with The Consumer Protection from Unfair Trading Regulations 2008 monitored by the Office of Fair Trading (OFT) and Trading Standards.

Non-optional fees can add a significant amount to the cost of moving into a property. It is unfair if these costs are not clearly stated up-front. The charges include, but are not limited to:

• general administration fees

• reference fees (including credit checks, bank, guarantor, previous landlord, etc)

• application fees

• fees for drawing up tenancy agreements

• inventory fees, including check-in and check-out fees

• guarantor arrangement/application fees

• additional occupant fees

• pets disclaimer fees/additional pet deposits

Advertisements should make clear whether charges are per tenant or per property.

This ruling does not cover refundable deposits.

In practice, non-optional fees that can be calculated in advance will be included with the quoted asking rent. Non-optional fees that do not change according to individual circumstances, such as, a fixed administration fee per tenant, should be clearly stated in advertisements. For example, rent £800 per calendar month plus £150 admin fee per tenant.

If the non-optional fees and charges cannot be calculated in advance, and are excluded from quoted prices, the letting agent must make this clear in the advertisement, and provide enough information to allow prospective tenants to easily establish how further charges will be calculated.

Where there is limited space in the advertisement information on additional fees should be provided through a prominent statement on either the website, a link or via a pop-up.

Property portals will make clear when additional fees may apply by inserting a hyperlinked “fees apply” statement, which will link to general information about the range of fees that could apply.

The ASA will monitor advertisements across all media to ensure changes are put into place and the Committee of Advertising Practice produced guidance for advertisers to ensure they comply with the ruling.

For further information, see www.asa.org.uk

ASA clamps down on hidden fees:
https://www.asa.org.uk/News-resources/Media-Centre/2013/ASA-clamps-down-on-hidden-letting-agent-fees.aspx#.VjjYStRFBbs

First published: March 2014

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