Letting agent fees query – 6 months management charge?

Letting agent fees query – 6 months management charge?

8:47 AM, 29th December 2021, About A year 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


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15:56 PM, 31st December 2021, About A year ago

If I was going to self manage I would read what the contract with the managing agent says (if there is one), give them notice that I was going to self manage from X date and draw up a new contract between myself and the tenant.

Graham Bowcock

16:03 PM, 31st December 2021, About A year ago

Reply to the comment left by Rennie at 31/12/2021 - 15:56
Hi Rennie

There should already be a "contract" between the landlord and tenant - it's the tenancy agreement. There shouldn't be any need for a new one.

If there's any doubt about the original arrangement then you could ask the tenant to enter a new agreement, but you cannot force them to sign. They are entitled to the terms of the original agreement unless it is ended (s21) or they voluntarily sign up.

If you do a new agreement, you have to be mindful about getting the compliance right - if we start a new agreement we do everythind needed (PI, DPS, EPC, etc.) as though the tenancy was brand new. Better safe than sorry.


11:02 AM, 1st January 2022, About A year ago

Ask the agent for a copy of your agreement with them. If there is one they must provide it. If there isn't one they can't invoke it

Then compare the clause with OFT v Foxtons:



19:34 PM, 4th January 2022, About A year ago

Reply to the comment left by Tony Hodge at 29/12/2021 - 09:32
Absolutely right! I have a managing agent because I don't want a separate 'business' mobile which I turn off at 7 pm. Tenants have no respect for 'time out'. It costs but it's worth it for me. The tenants have emergency numbers for gas and electricity failures. The rest can wait until the morning.

Heather G.

13:16 PM, 6th January 2022, About A year ago

Reply to the comment left by MasterG at 29/12/2021 - 10:29
I did the same. We had 2 properties available at the same time, I signed up 2 letting agents for Let Only. Went through each set of T&Cs carefully and crossed out anything I refused to agree with (using their energy supplier, renewal fees, sales commission if sold etc) and sent them back to them. After a brief conversation with each agent, they both signed my amended contract. I think I had put in that if they did the renewal of the AST I would pay them a reasonable flat fee for the paperwork to be issued but I dealt with the renewals.

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