Letting agent fees query – 6 months management charge?

Letting agent fees query – 6 months management charge?

8:47 AM, 29th December 2021, About 3 weeks ago 15

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Hello everyone, My question is If you pay/select full management for a letting agency for a year’s tenancy, but subsequently the tenant wants to stay on for a FURTHER year and do a new tenancy/renewal with the landlord rather than agency managing has anyone heard of the agency is it common practice/allowed to then charge fee equivalent of 6 months management for that NEW/RENEWAL tenancy if the landlord manages BEFORE the new/renewal tenancy has been done/signed?

In my case, the agency insists that ‘everyone’ does it. It feels like this is nonsense as locally I have checked some agencies locally, and they just cite a ‘renewal’ fee, that’s all. Even the said agency terms and conditions merely say if tenants stay on there would be a renewal fee and also ‘IF’ the tenants need referencing again there would be a fee for that and that’s it.

Could be wrong, but I wager it’s ridiculous to charge a 6-months fee when the landlord would be managing, I could go along/understand with perhaps the as it is known ‘Let only’ fee but the equivalent of 6 months management when not managing?

After all that is pretty much saying those who give them less custom with just ‘let only’ as they do not get the 1 year’s management but by giving them 1 year management are they saying ‘everyone’ then charges said landlord for management of the property themselves for the subsequent tenancy but not if they did not even get 1 years management in the first place.

So has anyone heard of this at all, let alone commonly done?

Many thanks

Sam



Comments

by Neil Patterson

8:59 AM, 29th December 2021, About 3 weeks ago

Hi Sam,

What is the exact wording in your contract?

by Cathie

9:28 AM, 29th December 2021, About 3 weeks ago

Having been caught in a contract that continued whilst the tenant was in residence and the only way to remove the agent was to evict the tenant or wait for them to leave - I now check the small print very carefully!

by Graham Bowcock

9:28 AM, 29th December 2021, About 3 weeks ago

Quite frankly there isn't really anything to do on renewal as the tenancy can hold over. Only if the parties want a new agreement would there be one - if used to be very common when you could charge tenants, but now you can't so the landlord has to pay. Most landlords choose not to pay so the agent ahs nothing to do. Unless the landlord is desperate for a new fixed term, the regime of holding over is fine.

BUT, as Neil said you need to check the contract that you signed; that is what will govern any payments due, not what other agents or landlords do.

by Tony Hodge

9:32 AM, 29th December 2021, About 3 weeks ago

Another way of looking at this situation is 'Do you really want to self-manage' with all the associated leaglities and hassel of tenants ringing you at silly O'colck to inform you the toilet is blocked especially if you don't live locally.
Tony

by Peter Hindley

10:01 AM, 29th December 2021, About 3 weeks ago

You state "the said agency terms and conditions merely say if tenants stay on there would be a renewal fee". All you can do is negotiate on the size of that fee. Is that stated anywhere? You can use what others do as an argument, but that point can just be dismissed by the other side.

by MasterG

10:29 AM, 29th December 2021, About 3 weeks ago

The simple answer is 'what does your contract with the agent say?'
When I started renting my property 9 years ago, the contract drawn up by the agent had just such a clause. I crossed it out and said "I'll pay you to manage my property. I'm not going to pay you not to manage it. Do you still want my business?"

by Nikki Palmer

10:31 AM, 29th December 2021, About 3 weeks ago

Are you sure this is not the case that your terms of business with the agent states that to give them notice to terminate your arrangement that you need to give 6 months notice?
I have heard this often about some of the corporate agencies who feel it's okay to charge for a service they are not offering. They also do the same if the Landlord is not happy with the service they are getting.
These agents are exactly the reason the Tenant Fee Ban was introduced

by Sam B

12:29 PM, 29th December 2021, About 3 weeks ago

Thanks for the replies all.

As it happens I did not 'sign' anything just merely agreed to them doing management.

And yes Peter the renewal fee is stated.

For avoidance of confusion I am talking I would be self managing when the current agent has not even signed a new tenancy/renewal (I could see where the fee would come about had that been the case)

Also I having looked at the tenancy there is no reference to this fee either.

by Nikki Palmer

12:50 PM, 29th December 2021, About 3 weeks ago

Reply to the comment left by Sam B at 29/12/2021 - 12:29
I think there is confusion here because
(a) you have a terms of business with the agent that somewhere along the line they must have produced paperwork for and you agreed to the terms, whether this was in writing or verbally
(b) the tenancy agreement is between you and the tenant - nothing to do with who has signed in (i.e. your agent on your behalf)
This "6 month notice fee" that your agents want you to pay is for you to terminate their services in order to self manage, not to end the tenancy

by Sam B

19:23 PM, 29th December 2021, About 3 weeks ago

Well I for sure would remember if they verbally stated that 6 month thing. There landlord fees section does not state this. I wager it was just the agency thinking I had the effrontery to self manage.
It takes two to tango or so I thought but didn't stop them from deducting from the existing tenants rent rather than last tenants deposit for costs that I didn't authorize in first place. And have not even forwarded what was left of the deposit despite tenancy ending 5 months ago.

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