Comments on: Letting Agent’s Renewal Fees http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees The LandlordZONE Weblog - news, economic and legal developments, current affairs and a knowledgebase for those involved with Rental Property, residential and commercial: Investors, Landlords, Property Managers, Letting and Estate Agents, Tenants and Professionals. Wed, 03 Dec 2008 23:40:16 +0000 http://wordpress.org/?v=2.6 By: julie http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-6358 julie Tue, 01 Jul 2008 11:30:18 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-6358 If you have a tenant who wants to remain in the rental accomodation for 1-2 years more and your agreement with your agent is rent collection only,on what basis would you have grounds to come out of your arrangement and deal directly with your tenant. My agent is charging me the equivalent of almost a year's commission to opt out of the agreement. I accept that they found the tenant in the first instance but they have reaped the benefit of a year's commission from this for doing virtually nothing else. The contract terminates in August. If you have a tenant who wants to remain in the rental accomodation for 1-2 years more and your agreement with your agent is rent collection only,on what basis would you have grounds to come out of your arrangement and deal directly with your tenant. My agent is charging me the equivalent of almost a year’s commission to opt out of the agreement. I accept that they found the tenant in the first instance but they have reaped the benefit of a year’s commission from this for doing virtually nothing else. The contract terminates in August.

]]> By: E_ http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-6243 E_ Thu, 22 May 2008 14:52:04 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-6243 Agree with b (20-5). The agent finds a tenant for a year. The Landlord pays the agent for finding a tenant for that year. The tenant stays on for a further year - hey presto, the agent should be paid a percentage for that further period. Most agents would reduce the renewal by around 50% if asked anyway. Agents who manage properties do not reduce their fees for a second or third year, so why do Landlords only complain when it is Let Only service renewal fee? A good agent would however offer betterment to the Landlord (increase rent, contact tenants and Landlord after 6 mths, then 10 months etc etc) and merit the fee. Agree with b (20-5). The agent finds a tenant for a year. The Landlord pays the agent for finding a tenant for that year. The tenant stays on for a further year - hey presto, the agent should be paid a percentage for that further period. Most agents would reduce the renewal by around 50% if asked anyway. Agents who manage properties do not reduce their fees for a second or third year, so why do Landlords only complain when it is Let Only service renewal fee? A good agent would however offer betterment to the Landlord (increase rent, contact tenants and Landlord after 6 mths, then 10 months etc etc) and merit the fee.

]]> By: b http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-6238 b Tue, 20 May 2008 18:00:57 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-6238 Surely the issue is not whether or not the agent has done any work at the time of the renewal, but at the intial introduction of the tenant. The agent collects a percentage of monies earned by the landlord, if the landlords earns more money from a deal, albeit after the fact, then the agent should be paid accordingly. and yes I am an agent Surely the issue is not whether or not the agent has done any work at the time of the renewal, but at the intial introduction of the tenant.

The agent collects a percentage of monies earned by the landlord, if the landlords earns more money from a deal, albeit after the fact, then the agent should be paid accordingly.

and yes I am an agent

]]> By: alex http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-6170 alex Sat, 26 Apr 2008 11:52:50 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-6170 The landlord should always read and sign the agreements. If you are not bothered reading it in the first place then why moan now? The landlord should always read and sign the agreements. If you are not bothered reading it in the first place then why moan now?

]]> By: Bradley Read http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-6006 Bradley Read Wed, 05 Mar 2008 19:49:16 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-6006 We are having the same problem with renewal fees even though the letting agent at time of finding the tenant verbally told us he would waive this fee in the 2nd year - we are being threatened with small claims court as we have refused to pay it - the agent has not even made contact with the tenant to see if he wishes to remain, has not asked for a rental increase and has not even produced a renewed contract. The original contract after the first year transpired last July. We are due to go to court in a months time - any advise would be apreciated. Thanks We are having the same problem with renewal fees even though the letting agent at time of finding the tenant verbally told us he would waive this fee in the 2nd year - we are being threatened with small claims court as we have refused to pay it - the agent has not even made contact with the tenant to see if he wishes to remain, has not asked for a rental increase and has not even produced a renewed contract. The original contract after the first year transpired last July. We are due to go to court in a months time - any advise would be apreciated. Thanks

]]> By: Lawrence http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-5421 Lawrence Mon, 22 Oct 2007 19:30:16 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-5421 Having read a number of posts on this and other websites, I concluded it was safe and legal to inform my letting agent I no longer required their services (after renewing for 2 years already and the agent doing virtually nothing). The letting agreement had no date on it, or anything about cancelling it and I was advised it was unenforceable. In the event the agent did not persue it- perhaps because one year they had even forgotten to renew the contract until I reminded them and even then the tenant never signed! I am still with the same tenant and no problem at all renewing leases myself. I feel the above article falls rather heavily on the side of the letting agent- do more research before giving in! Having read a number of posts on this and other websites, I concluded it was safe and legal to inform my letting agent I no longer required their services (after renewing for 2 years already and the agent doing virtually nothing). The letting agreement had no date on it, or anything about cancelling it and I was advised it was unenforceable. In the event the agent did not persue it- perhaps because one year they had even forgotten to renew the contract until I reminded them and even then the tenant never signed! I am still with the same tenant and no problem at all renewing leases myself. I feel the above article falls rather heavily on the side of the letting agent- do more research before giving in!

]]> By: Justin Burns http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-5362 Justin Burns Wed, 05 Sep 2007 12:21:17 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-5362 If you have signed the agent's terms and conditions there is nothing that you can do at this stage. The post was trying to bring the clause to the attention of Landlords so that they have the opportunity to try and negotiate the renewal fee down prior to signing up. Try and look on the bright side; at least the tenants that the agent found for you are staying on, so you won't have to pay a new let fee (which would probably have been higher) for another year. If you have signed the agent’s terms and conditions there is nothing that you can do at this stage. The post was trying to bring the clause to the attention of Landlords so that they have the opportunity to try and negotiate the renewal fee down prior to signing up.

Try and look on the bright side; at least the tenants that the agent found for you are staying on, so you won’t have to pay a new let fee (which would probably have been higher) for another year.

]]> By: Anonymous http://www.landlordzone.co.uk/blog/landlord-tenant/letting-agents-renewal-fees#comment-5353 Anonymous Wed, 29 Aug 2007 09:25:50 +0000 http://www.landlordzone.co.uk/blog/?p=122#comment-5353 Hi Justin, This is precisely the problem i am having right now with an agent who is demanding a renewal fee for absolutely no work done. It was absolutely not explained to us that we'd have to pay a renewals fee if we kept the tenant on regardless. We feel we have been mislead and that somehow the problem needs to be corrected. We were dealing with an agent for the first time. Is there anything that can be done? Hi Justin,
This is precisely the problem i am having right now with an agent who is demanding a renewal fee for absolutely no work done.

It was absolutely not explained to us that we’d have to pay a renewals fee if we kept the tenant on regardless.

We feel we have been mislead and that somehow the problem needs to be corrected. We were dealing with an agent for the first time.

Is there anything that can be done?

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