Renewal fees to letting agents

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  • Renewal fees to letting agents

    Hi everyone, I know this is a topic that's come up before, but I can't find anything on the site that fits my situation exactly.

    I used a letting agency to find me a tenant. I signed an agreement saying they were due renewal fees (of 9% of annual rental) if the tenant stayed after the original period of 1 year. I was told that this was normal and (naively) accepted this. I decided to end the agreement with the letting agency before the year was up and did, in writing. I was resigned to paying the renewal fees which have become due....but after looking at this site, I feel very annoyed as it means I am paying for absolutely nothing (the letting agency did not arrange the new agreement with my tenant.) Can they enforce the agreement? I saw a reference to "unfair terms" on another post - can anyone enlighten me as to whether there have been cases testing whether renewal fee agreements are legally enforceable?

    Chris K

  • #2
    If you have signed the agreement then, IHMO, there is very little that you can do except to take the action you have. I would think that getting a judge to agree that such a term is unfair will cost you more in legal fees than the agent's fee you may save! Put it down to experience and now you have discovered this board continue to learn from it as the rest of us do!

    P.P.
    Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

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    • #3
      Whaaaaaaaaaaaaaat !

      Who says the agent has any right to "renewal fees". You're dead right in that it is unfair for you to be charged for nothing. Humble opinions usually mean the poster has something to be humble about!

      When will posters wake up to the fact that just because it says XYZ in a terms of business agreement, you meekly have to pay up - Bovine Excrement!

      Just ask yourself, was the term "fair & reasonable", and did the agent "execute" the client's express instruction. It would have been necessary to have drawn up a new tenancy to charge any fee, not just allowing it become periodic for which no fee can be levied.

      Illegitmae Carborundum
      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

      Comment


      • #4
        Whaaaaaaaaaaaaaat !

        Who says the agent has any right to "renewal fees". You're dead right in that it is unfair for you to be charged for nothing. Humble opinions usually mean the poster has something to be humble about!

        When will posters wake up to the fact that just because it says XYZ in a terms of business agreement, you meekly have to pay up - Bovine Excrement!

        Just ask yourself, was the term "fair & reasonable", and did the agent "execute" the client's express instruction. It would have been necessary to have drawn up a new tenancy to charge any fee, not just allowing it become periodic for which no fee can be levied.

        Nil Illegitimae Carborundum
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

        Comment

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