Letting agent charges fee even after my tenant leaves

[rob77]

Hi all

Wondering whether anybody could advise me on an issue that has come up between myself and the London letting agency that I let my flat through.

I let my flat out on a 12 month contract on a letting only basis, and paid the agency 9% of the annual rent + various charges + VAT upfront. The twelve month period expired in November and the tenant advised the agency that she would like to remain in the property. I agreed to this and then received an invoice from the agency for another nine percent of the annual rent + VAT to be paid upfront. As if having to pay this charge in advance for an appalling/non-existent service is not enough, it has just been explained to me by the agency that if my tenant moves out at any stage during the twelve month period (she can now give me a month's notice at any time), I will not be eligible for a partial refund on the commission that I have paid to the agency.

This seems to be at best grossly unfair on landlords and at worst daylight robbery. Can anybody confirm whether this is standard practice? And whether there is any sort of right of appeal on this type of issue?

All help is very much appreciated.

Many thanks
Rob

[Jonboy]

yes some agents do charge you again for keeping tenants, i don't but then i'm not in london so i can't help you, do you have a signed 'tob' agreement with the agent? many forget to do this, then you have a case but if you signed to say you would pay rerental fees not much you can do. i would find a new agent.

[Paul_f]

Rob77. This is a common "sting" in London and in fact I consider it illegal as a let only contract ends when the tenant moves in. Unfortunately most London agents try this on and get away with it.

The agency can't charge you anything just because the tenant stays there as its outside of their contract terms, even if it's in their agreement with you.

I suggest you take your agency contract to your local Trading Standards Officer and ask him/her to intervene, and write to the agent, as you consider it beyond the Unfair Terms in Consumer Contract Regulations guidelines as it's an onerous and unfair term.

The matter should rest thereafter!:(

[rob77]

Many thanks Jonboy & Paul.
Have taken your advice and am not going to pay this for the time being. They stated in the letter they sent though, that if it is not paid they will hand the matter over to bailiffs. Do you know whether they can do this without going through due legal proceedings? The worst part is that they have my parents' address rather than mine! Any thoughts are much appreciated . . .:(

[Paul_f]

They would first have to issue a summons through the county court, which you would then defend and might even consider a counter-claim for harassment! Bailiffs only come if and when you don't pay within 28 days after the court has decided you are liable.

[mjpl]

Look carefully at your terms of business. The agent could have worded it in such a way that the charge of 9% is levied against all rent paid to you by the tenant and not just a charge for the original tenancy term, if so, you would be well advised to take advice.