Getting away from letting agents

[packeted]

Hi there guys

Well I've let my flat out to the same tenants for 4 years now through the same agent with them collecting 13% of the annual rent each year for providing absolutely nothing at all but the cheek of trying to charge me 250+VAT for a three line renewal contract each year.

I have a feeling that the tenants will be pushing for a rent reduction this year as they've probably been hit hard by the credit crunch. I wouldn't like to lose them as they've been good tenants but I can't afford to have my own finances squeezed any further.

My question is can I go outside of the letting agents and renew my contract with them directly to save myself their commission and allow for a rent reduction? Does anyone have any experience of doing this? Alternatively has anyone ever negotiated a reduced commission fee on renewals?

Many thanks!

[packeted]

Just to add, the agents are Foxtons who at present collect the rent and as far as I know, hold the deposit.

[packeted]

Ok well it seems this has been the basis of many discussions in the past and the subject of the OFT vs Foxtons case which is still in progress.

So I guess this leaves me asking what is the best course of action for me to take? I am not a professional landlord as such, this is my only property and I would very much like to avoid this 2k+ fee for the coming year.

[jeffrey]

My question is can I go outside of the letting agents and renew my contract with them directly to save myself their commission and allow for a rent reduction?
You have had two separate and independent contracts:
1. Agency Agreement: you + Agent
2. Letting Agreement: you + Tenant.

So, yes- you can cancel contract1 (subject to its conditions) and retain contract2.

[packeted]

Anyone have any experience with Foxtons on this issue?
Can I simply write to them to cancel the L-LA contract?

[Paul_f]

You could try - others pobably have already!

[jeffrey]

Can I simply write to them to cancel the L-LA contract?
Yes, depending on its terms and conditions. What do these state re its duration, for instance?

[packeted]

There is no mention of it's duration... Here are the terms on renewals..


6.1. Renewal comission payments will be charged in respect of renewals, extension and hold-overs or new agreements where the original tenant remains in occupation. They will also be charged where the incoming tenant is a person, company or other entity associated or connected with the original tenant, either personally or by involvement or connection with any company or other entity with whom the original tenant is or was involved or connected. Where there is more than one tenant, renewal comission will be payable in full where any or all of them remain in occupation. The comission fee is payable for any tenant introduced to the property by Foxtons, whether or not the tenancy is finalised by Foxtons.

6.2. Renewal commission is charged in advance, either as a percentage of the renal value of the new agreed term or if no such term is agreed as a percentage of the renal value of anyu furthre period for which renal income is received. The scale of the comission fees charged is as set out on page 1.


6.3. In the event that the landlord and tenant agree to a renewal or extension of the tenancy, a charge of £60 will be made by Foxtons for preparation of the documentation.


Any ideas?

Many thanks!

[P.Pilcher]

Other posters here have stated that Messrs Foxtons apply their renewal clauses with vigour and are particularly careful to ensure that a landlord does not dispense with their services and retain a tenant originally found by them. There us no stated time limit and Foxtons vigourously apply the clause while such a tenant remains in residence or returns to it after a brief period. I further understand that there is a long, ongoing court battle which Foxtons are fighting with vigour as such terms are considered unfair. Many other agents are standing on the sidelines anxiously awaiting the outcome of this protracted legal battle.

P.P.

[packeted]

Indeed, I have read about the OFT vs Foxtons case, although it doesn't seem to be progressing with much speed.

So essentially I'm locked in until there is a ruling on this one?

[TiredLandlady]

Hi,

Just wondering what the outcome was? Did you manage to avoid paying the 13% renewal to Foxtons?