A little advice for a new landlord please - agents fee renewals

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    A little advice for a new landlord please - agents fee renewals

    We paid our agent a finders fee initially, which came to £700, but now that the tenancy is up for renewal, he requires the fee again. My wife and I are new to renting and weren't aware that this fee would recur with each period. Our agent has offered no additional services in this period, and is not managing the property.

    Our tenants have signed nothing yet, and we would rather draw up our own contract with them, rather than pass on these costs to our tenants.

    I assumed I would be in a position at this point to close our dealings with the agent and make this happen, but the reply we received came as follows:

    "Thanks for getting back to me.

    As the fixed term tenancy term has expired, the tenancy has automatically become a Statutory Periodic Tenancy. All the terms of the initial agreement remain the same however the tenants are now only obliged to serve you one months notice to terminate and not the two months as stated in the fixed term agreement.

    This change of tenancy is deemed to be a renewal of the agreement as the fixed term has expired.
    Our fees are charged on a 12 monthly basis and are therefore now due, however if for some reason the tenants left during the next 12 months we would refund any fees on a pro rata basis.

    I hope this clarifies the situation and I look forward to receiving payment of our invoice."

    Could someone please clarify whether the agent's reply accurately describes my obligation, or whether I am in a position to close our agreement and draw one up with the tenants directly. Thanks in advance, for any advice offered.

    #2
    The first document to check is your contract with the agent, which will define fees.

    Comment


      #3
      As new to renting be aware that many landlords (& tenants..) are quite happy with tenants being on periodic tenancies, if only so they may be evicted faster than if tied into a long fixed term. So no new document is required...

      You do have a copy of the tenancy, credit checks etc etc etc ???

      But, as jj says, read what you agreed....
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Hi Bill and Ben,
        We're in a very similar situation here.
        We're being quoted £600 (we're in Warwickshire) by our current letting agents to renew the tenancy.
        I've just called another agent and they have quoted me £300 and that includes tenant find. Since we already have a tenant they are going to ring me back with a reduced price when the manager is in.
        Previously we've paid £125 for a 6 month contract renewal with another agent.

        In short I think you should shop around, £700 is offensively expensive.

        We're looking for just a tenancy agreement and bond holding service, if we don't find one cheap enough we'll do it ourselves.

        Well probably try to 're-write' the tenancy agreement we have with our current agent.

        Good luck with it all.

        Comment


          #5
          Originally posted by petrem View Post
          Well probably try to 're-write' the tenancy agreement we have with our current agent.
          Unless you really know what you are doing its not worth it - spend a tenner here http://www.tenancyservices.co.uk/pro...ancy-agreement.

          Comment


            #6
            Better still you can download several tenancy agreements for free and adopt the best parts from all of them. Also use the one you already have as some of the content will be relevant. It's not that diffucult to write your own.
            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.

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