Letting agency fee increase?

by Readers Question

10:11 AM, 12th July 2019
About 2 weeks ago

Letting agency fee increase?

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Letting agency fee increase?

Hi, I have a sitting tenant who is willing to renew this tenancy, at the moment I am using full management service from a local estate agency.

However, this local estate agency is pushing to raise their fees in light of this renewal (keeping the same tenant).

Can I refuse the fee increase? Can I go along with the tenant privately if I can not agree with the agency on the fees increase?

Many Thanks,

Lee



Comments

Neil Patterson

11:51 AM, 12th July 2019
About 2 weeks ago

Hi Lee,

Please check the terms and conditions you signed for very carefully. You may be contractually tied into a renewal fee if you keep the same tenant.

However, if they are trying to increase this or the management fees this may dependent on wording then give you an out, but the devil is in the detail.

Gary Nock

9:34 AM, 15th July 2019
About A week ago

Neil is right. Depends on your agency agreement. And also consider that as a landlord you will need to comply with around 170 pieces of legislation to remain compliant. It's not just a matter of giving the tenants your bank account and watching the rent come in without any management fee deducted. If you feel confident enough to run the tenancy yourself then give it a go. But make sure you have key dates in your diary for gas and electricity safety certificates, legionella testing, PAT testing, regular inspections for smoke and carbon monoxide alarm checks, etc. And remember unless you serve certain documentation on the tenant on an ongoing basis like gas certs and How To Rent information you will lose your right to serve a Section 21 Notice until you do.

brian gibson

12:24 PM, 15th July 2019
About A week ago

Letting agents have taken a massive hit so most are increasing their fees and reducing staff which I'm sure will impact on the private landlords reputaion ! the letting agent we use Daniel Craig Residential in the north east is redusing overheads by moving off the high street and keeping fees the same.
The governments plans to help the tenants is going to backfire again by more unhappy and probably less safe tenants if safety checks are left to the untrained landlord, more empty shops and less jobs ! know doubt it will be the landlords fault again !

NEIL T

19:36 PM, 15th July 2019
About A week ago

For future reference, do go through agency agreements with a fine tooth comb and cross out anything that you don't like, especially with regard to further fees. I've never had an agent turn me down if they did I'd move on to another.

Chris Daniel

22:01 PM, 15th July 2019
About A week ago

Lee,
Agents Can NOT just write whatever terms into a contract that ties you in unfairly, no more than a landlord can write into a Tenancy agreement that a Tenant must give Two months notice to leave ( I've seen it a number of times ) - it simply can't be enforced as its an Unfair term.
If you want to dispense with a contract with an Agent, a months notice is considered to be a fair notice period.
See ;
Competition & Marketing Authority ' Guidance fo Lettings Professionals on Consumer Law ' Helping you comply with your obligations. June 2014 CMA31
( in particular, Para's 1.9 & 1.10 page 5
Para's 3.2 page 13
page 18
Para's 4.23 page 44
Para's 4.27 & 4.29 Page 45
and Page 46. )

Michael Barnes

22:14 PM, 15th July 2019
About A week ago

Reply to the comment left by Chris Daniel at 15/07/2019 - 22:01
That relies on LL being considered a consumer.


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