Fees for tenant introduction service only - one off cost only or on going?

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    Fees for tenant introduction service only - one off cost only or on going?

    Hello, I’ve taken on an agent on the basis that they will find me a tenant, reference them, prepare the contract, do check in inventory, register deposit etc etc and once all completed hand me the reigns to collect rent and manage the property myself

    Initially we discussed a one off fee of x amount of the first years rent (plus associated contract charges etc)

    Now it seems the agent is stating in the T&C’s that a commission is due on subsequent extensions of the initial term

    My question therefore is how common is it for an agent to expect a subsequent yearly commission on agreements where they are not collecting rent or managing the property? Should this only be a one off fee for finding a tenant?

    Am I wrong in expecting to only pay them once for an introduction? (Obviously happy to pay fees for contract renewals or finding new tenants if “current tenants” leave)







    #2
    In the days when I used a tenant find service I made a one off payment. After they found me the tenant from hell I now use openrent so I get to interview and choose my own tenants. I would never use a tenant find service now, they have every incentive to get you the first person who walks through the door and no incentive to get you a good tenant. IMO at £29 you can't beat it openrent. And trying to sneak something in the Ts and Cs you hadn't discussed would make sure I didn't use them.

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      #3
      Originally posted by CraigWB View Post
      Am I wrong in expecting to only pay them once for an introduction?
      Absolutely not! That used to be the norm. I do not know what the norm is now. Whatever it is, you asked for a one off finder's fee and the agent has given you a "gift which keeps on giving" contract. Do not sign up. Find another agent and tell him not to pull the same trick.

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        #4
        Thanks for your replies. After asking 3 or 4 times the agent finally removed all references to continued commission after the initial finders fee for the first 12 months

        I don’t know whether the contract was particularly nasty or whether there was just nothing to distinguish between managed, rent collection or let only services

        Additionally I requested the removal of the clause for a commission if I sold the property to the tenants

        Also there was a nasty clause stating I would be responsible for any lost commissions in the event that I sell the property to another landlord who decides not to honour their specified fees

        I guess it pays to read, read and read again all the fine print and stand firm

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          #5
          Originally posted by CraigWB View Post
          I guess it pays to read, read and read again all the fine print and stand firm
          its worth reading, especially if you are a limited company. Atleast as an individual you are protected by ‘unfair clauses’

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            #6
            Originally posted by CraigWB View Post
            I guess it pays to read, read and read again all the fine print and stand firm
            Absolutely! Too many people roll over after being told that some provision is standard.

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              #7
              Originally posted by royw View Post
              I would never use a tenant find service now, they have every incentive to get you the first person who walks through the door and no incentive to get you a good tenant
              Friend of a friend worked at a letting agents. She said they tried to steer the better looking prospects towards the properties they managed themselves.

              A tenant of mine told me that, during the viewing, the agent said that the property was managed by the landlord, in a way that made it seem negative. She said she preferred that and signed up anyway.

              I'm not saying this is common practice, but I can understand the temptation.

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                #8
                Originally posted by CraigWB View Post
                After asking 3 or 4 times the agent finally removed all references to continued commission after the initial finders fee for the first 12 months
                Red flag right there. You should only have to ask them to do something once, maybe twice.

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