Letting Agent changes terms and conditions?

by Readers Question

14:55 PM, 27th April 2017
About 2 years ago

Letting Agent changes terms and conditions?

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Letting Agent changes terms and conditions?

My letting agency has recently advised me of changes to their terms and conditions in which they are increasing their landlord (and tenant) renewal fees from £84 to £132.

I am a landlord of two properties, one of which renews every 6 months with rent paid (to the agent) in advance. I believe these to be unreasonable increases for both myself and my tenants. Both properties are currently managed by the agency.

I will try to negotiate with the Agency, but where do I stand if they refuse to budge? I have no other issues with the Agency and I am not seeking to use this as a means to terminate the contract but would be interested to know if anyone else has experience of this.

Thanks

Paul



Comments

Neil Patterson

14:57 PM, 27th April 2017
About 2 years ago

Hi Paul,

I also doubt the agents would want to lose a good client over this.

What is the exact wording in your contract regarding renewal fees and are there any clauses overall that allow for review of fees?

Gary Nock

16:48 PM, 27th April 2017
About 2 years ago

Unless its in the contract ( and if it is it shouldn't be) then neither the tenant or yourself are obliged to renew every 6 months as the tenancy becomes a statutory periodic. If they are charging both you and the tenant £132 every 6 months that's £264 per property x 2 - £528. Double charging at it's worst. I would tell them that unless the tenant requests it then the tenancy will now proceed on a statutory periodic basis. So you save yourself £264 a year x 2 properties - £528 and the tenants also save. As an agent and a landlord I despair at stories like this and this is why the government is looking to ban up front fees. It probably won't stop in tenancy fees but in cases like this it should. And if the agency argues the toss the tell them you will take your business elsewhere. If Letting Supermarket operate in your area then you could get your management fees down to 5%.

Mark Lynham

10:57 AM, 28th April 2017
About 2 years ago

i wonder if this is in response to the forthcoming ban on letting fees... making the most of tenant fees while they can too

Gary Nock

11:16 AM, 28th April 2017
About 2 years ago

Reply to the comment left by "Mark Lynham" at "28/04/2017 - 10:57":

I have no doubt it is Mark. A little premature though. And looks like exploitation to me. £264 to renew a tenancy is excessive.

Mark Lynham

11:23 AM, 28th April 2017
About 2 years ago

i totally agree with you...

Jireh Homes

17:11 PM, 29th April 2017
About 2 years ago

Agree with comments above that proposed fee increase totally unreasonable. Quite often this just involves issue of a "letter" confirming extension for further 6 months so vastly different to work involved in initial set up of lease. Check wording in lease as should have been written to allow auto roll-over on a month basis, which would thus negate need for renewal. However if you are seeking increase in rent then a letter will be required, but not necessarily the full lease document.

Should you be desiring the guarantee of a further 6 months lease and agent not willing to negotiate on fee, then maybe time to change to another agent.


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