Agents fees for extending tenancy

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    Agents fees for extending tenancy

    I have a good tenant for the last 6months. The agent who found the tenant now say he wants to extend for a further 12 months. The agents want to charge me in excess of £550 +vat for him to go into their office and sign a new tenancy. I have asked them to justify this amount as they do not manage this property, take rent or check the property. Is it feasable for me to drop the agent and deal directly with the tenant. What do I do about the security deposit which they have.

    #2
    Originally posted by marlott7 View Post
    I have a good tenant for the last 6months. The agent who found the tenant now say he wants to extend for a further 12 months. The agents want to charge me in excess of £550 +vat for him to go into their office and sign a new tenancy. I have asked them to justify this amount as they do not manage this property, take rent or check the property. Is it feasable for me to drop the agent and deal directly with the tenant. What do I do about the security deposit which they have.
    Read the contract you originally signed with the agent. What does it say about continuation/renewal fees if the tenant remains in the property after the end of the fixed term?
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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      #3
      Also, you could just advise your agent (and tenant) that no new agreement is needed, and that you are happy to let the original fixed term agreement roll over into a statutory period tenancy. This will take effect on the same terms as the existing tenancy agreement, except that it will run month to month.

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        #4
        Originally posted by dominic View Post
        Also, you could just advise your agent (and tenant) that no new agreement is needed, and that you are happy to let the original fixed term agreement roll over into a statutory period tenancy. This will take effect on the same terms as the existing tenancy agreement, except that it will run month to month.
        Yes, I agree; however, some agents seem to worm into their agency agreements a commitment from LL to paying them (A) fees/commission ad infinitum or at least as long as T stays, whether tenancy is renewed or becomes periodic.
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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          #5
          Originally posted by Bogerm
          Sorry for offtopic, I just wanted to say that tenant can refuse to pay small admin fees, and procedure of withdrawing them could be more expensive than fee itself. Yes it could be breach of contract, but not ground for terminating this contract. It will be up to court or tribunal to decided is that fee payable or not...

          Regarding my renewal fee, yes I spoken many times to LL and LA. LL didn't want to cancel agreement with LA and LA was simply telling to me to move out if I don't want to renew the contract. The cost of moving out was more than admin fee, so I considered that as an unavoidable expenses...
          The thread is actually about the way agents charge landlords renewal fees - don't tell us they are now trying to charge tenants as well for the same thing?
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


            #6
            Originally posted by mind the gap View Post
            The thread is actually about the way agents charge landlords renewal fees - don't tell us they are now trying to charge tenants as well for the same thing?
            Sorry, I posted in wrong thread. But yes, they are charging tenants too...
            I had to pay £80 each year. They were simply sending me correct notice and letter explaning that I have to pay admin fee for renewal or vacate property... so, landlords, don't forget to ask your tenants do they really want to move out, or simply trying to avoid extra fees.

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              #7
              Originally posted by mind the gap View Post
              The thread is actually about the way agents charge landlords renewal fees - don't tell us they are now trying to charge tenants as well for the same thing?
              Some of course are. Without any legal right to demand them. Agents abuse their position to make T think they have to pay the fee or else lose their home.

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                #8
                Originally posted by dominic View Post
                Some of course are. Without any legal right to demand them. Agents abuse their position to make T think they have to pay the fee or else lose their home.
                Sorry, what you mean by saying 'to make T think...'. They were sending me absolutely correct 2 month notice of AST termination. LA don't have any risks, because if I move out, its LL who will experience financial loses in case if they fail to find another tenant.

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                  #9
                  Originally posted by Bogerm View Post
                  Sorry, what you mean by saying 'to make T think...'. They were sending me absolutely correct 2 month notice of AST termination. LA don't have any risks, because if I move out, its LL who will experience financial loses in case if they fail to find another tenant.
                  Yes, but did you ever sign a contract with the agent agreeing to pay them a ridiculous sum of money to send you unnecessary letters on a regular basis pointing out what you knew already?

                  If not, then refuse to pay - and tell your LL you are not obliged to do so. Let him sort it out with the agent (and hopefully, sack him).
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                    #10
                    Absolutely ridiculous fees.....

                    There are agents out there that do not charge renewal fees and I cannot see any justification for charging tenant or landlord for just signing a piece of paper.

                    Comment


                      #11
                      Originally posted by Bogerm View Post
                      Sorry, what you mean by saying 'to make T think...'. They were sending me absolutely correct 2 month notice of AST termination. LA don't have any risks, because if I move out, its LL who will experience financial loses in case if they fail to find another tenant.
                      I was commenting on LA practice generally, not on your circumstances particularly (although it seems to me the LA is purporting to suggest to you that you need to pay them a fee in order to continue your tenancy with the LL, which you do not).

                      You have no contract with LA, and accordingly are not obliged to give/pay them anything. You are continuing the tenancy with the LL who (I'll wager) will not charge you an admin fee to secure for himself 12 months further rent.

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                        #12
                        Originally posted by dominic View Post
                        You have no contract with LA, and accordingly are not obliged to give/pay them anything. You are continuing the tenancy with the LL who (I'll wager) will not charge you an admin fee to secure for himself 12 months further rent.
                        Thank you! I perfectly understand what are you saying. The problem is that I don't know terms of contract between LA and LL. May be renewal fee for LL is the same as fee for signing new contract. In that case for LL is no difference would it be new tenant or old one. For me difference is huge:
                        1. £120 non-refundable application fee for new tenancy
                        2. £400+ for moving all the furniture to new house
                        3. £200+ cleaning and repair

                        £80 fee is nothing comparing to that...

                        Comment


                          #13
                          Originally posted by Bogerm View Post
                          Thank you! I perfectly understand what are you saying. The problem is that I don't know terms of contract between LA and LL. May be renewal fee for LL is the same as fee for signing new contract. In that case for LL is no difference would it be new tenant or old one. For me difference is huge:
                          1. £120 non-refundable application fee for new tenancy
                          2. £400+ for moving all the furniture to new house
                          3. £200+ cleaning and repair

                          £80 fee is nothing comparing to that...
                          No, but it would cost your LL just as much or more to get a new tenant in.

                          Have you actually signed something which specifically makes you liable for this continuation/renewal fee to the agent, or not?
                          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                          Comment


                            #14
                            Originally posted by Bogerm View Post
                            Thank you! I perfectly understand what are you saying. The problem is that I don't know terms of contract between LA and LL. May be renewal fee for LL is the same as fee for signing new contract. In that case for LL is no difference would it be new tenant or old one. For me difference is huge:
                            1. £120 non-refundable application fee for new tenancy
                            2. £400+ for moving all the furniture to new house
                            3. £200+ cleaning and repair

                            £80 fee is nothing comparing to that...
                            Why don't you talk to your LL directly and tell him you want to renew the tenancy. You will find out quiute quickly if he wants to charge you/pass on any admin fees in addition to the rent for the extended/renewed term.

                            Comment


                              #15
                              Thanks everyone...

                              Thanks for all your advice it seems that I will have to take this up with my Agent. I have contacted my tenant and he hasn't been asked for a renewal fee.... as yet. Just seems such a rip off for doing nothing. I understand they have to make money but they had their fee at the start of the tenancy 6months ago. If they were finding a new tenant for me then I could understand it.

                              Comment

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