Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 5 days ago 64
We have had our tenant in our property for 2 years on an initial 24 month tenancy, for which, we of course paid agents fees of 6%. Now we have come up to renewal time and naively I did not realise we are liable for fee’s for another 2 years still. 4% for 12 months and then 2% the following year should the tenants stay in! They also want to charge £150 fee to draw up the new tenancy although I have now convinced them to drop that charge.
It’s my fault for not properly understanding their fee’s, but effectively should our tenants stay on board for another 2 years which they have said they want to, the cost in fee’s would be around £1600. However, if I were to evict my lovely tenants and re-let through LettingSupermarket who offer effectively a finders fee about around £300 which includes advertising, viewings and reference/credit checks, and no ongoing renewal fees I would effectively save myself over £1000 once taking into account a few of the switch over expenses like cleaning, inventory etc.
Now I really don’t want to evict my tenants but purely on a numbers game, it makes the most sense right?
Alternatively I could increase my tenants rent by £50 which is what the agent is suggesting, and that would soften the blow a little, but either way my tenants are getting screwed and we look like the bad guys!
Is there anyway, that people know of, of keeping my tenants without paying these massive fee’s. I know in future I won’t be going with an agent who has ongoing renewal fees 🙁 There is a clause saying even if the tenant switches onto a periodic tenancy, we are still liable for the fees.
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