I let my flat through an agent in 2007 and signed a Letting Agreement with renewal fees.
I pay the agent 6% each time he finds me a tenant and a yearly renewal fee.
He has found me three tenants since 2007 all have stayed about two years and I have paid the renewal fee but I have never signed another Letting Agreement with them.
Last year my present tenant renewed his contract on a roll-over basis at the same rent. I informed the agent this is what we had agreed and he has not charged me a renewal fee (yet).
The tenancy is due for renewal in a couple of months and he has ‘phoned today asking me if I would like him to write to the tenant. I told him I would deal with this.
The agent has nothing to do with the flat throughout the year, I collect the rent and the tenant calls me to deal with any problems. The agent has nothing to do – he did not even remind me about the gas certificate renewal – he has not even had to produce another contract.
I am going to suggest to my tenant that if he is staying we will continue with the roll-over contract at the same rent.
What is my position as far as the renewal fees are concerned?
I have a feeling he might sting me for two years at 6% at the next renewal.
I have spoken to several landlords that I have now met and they all use agents to find tenants only – no renewal fee.
I would be grateful for some advice please.