Lease Renewal Fee

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    Lease Renewal Fee

    Hi,

    I’m a novice landlord based in Scotland. My letting agent charges me 12.5% and every 6 months I had a flat rate lease renewal fee of £80.

    With fairly recent changes to do away with Short Term Tenancies, I understand they cannot charge a lease renewal fee as they don’t have to renew the lease every six months. However they now charge me a twice yearly “Lease Compliance Inspection Fee”’of £80. I’ve asked around and other agents in my area don’t seem to charge this. Their flat rate fees take care of the inspections. My agent claims it is a lot of work and they have to do an online report and handle deposits etc. It doesn’t seem like £80 of work to me. Does this seem excessive to anyone more informed than me? I’ve told my agent I think they are charging me too much. Has anyone else seen such a few? It seems they are just finding another way to keep getting the old lease renewal fee.

    Thanks

    Max

    #2
    Have a look at the company accounts or google them to see if they make any finance based announcements.
    That'll give you some idea how profitable their business is.

    Part of the issue with letting agents is that good ones are difficult to find and doing the job well is much more expensive than not doing it well.
    If you rely on the agent, you want them to be working hard on your behalf and staying in business.

    If they do a decent inspection taking an hour or so, £80 doesn't sound too bad.
    If they do a cursory glance round and are simply replacing the charge they can no longer make, tell them not to bother, or make it annual.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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