Letting agent renewal fees

[Lucifera]

Has anyone on here refused to pay a letting agent's lease renewal fees - when all the agent does is this each year, no rent collection or management? We've had the same tenant for 4 years and have just handed over another huge sum to the agent who found him for us - it's in the contract with them, of course, but there's recently been a case where the Office of Fair Trading won against Foxtons. I want to write to the agent now to say don't do anything more because we're not going to pay you again, but I don't want to be taken to court!

That doe seem outrageous to make you pay year after year for nothing! I am not in your position so have no idea, but can hardly believe that this is so.

I wonder if there is a way to say the tenants have moved on and just cancel anything else to do with them?

thanks BB - yes it is outrageous, I think perhaps it only happens in London. I wouldn't mind paying them a reasonable fee for renewing the lease but not 8% of annual rent plus VAT! Whatever we say to them they will demand proof so I'm not sure it's even worth lying ...

I'm looking into this as I want to stay where I am without paying each year and it is possible.

The information is on the ARLA website, scroll down to 'what about renewals and extensions of tenancy? It says: This is a very common situation and the ARLA Agent will normally negotiate between the parties and prepare the necessary formal documentation for a replacement tenancy or fixed term extension.

If no further fixed term is created to follow on from the end-date of original term, and assuming notice to end the tenancy has not been served, the tenancy can simply hold over as a "periodic tenancy" e.g. rolling on with basically the same terms and conditions and in line with how the rent is due to be paid. This is usually monthly.

www.arla.co.uk/infosheets/list.aspx?id=2

Living, I don't think tenants usually have to pay fees for lease renewals; if you are being asked for a fee you should maybe ask your landlord/lady to intervene. But landlords have to pay a huge whack (in London anyway).

Apparently some of the agents round here charge both parties...money for nothing!

When i had my flat we paid when they found new tenants and a monthly managemnet fee, so if the tenant stayed then no I didn't pay an annual fee. The fee I paid covered advertising etc.

I'm a tenant and the EA charged us for renewal of contracts. I thought only tenants were charged such a fee...but now I'm starting to wonder if my landlord also received an invoice...

yes, I would check. This 'double dipping' is outrageous.

I think it depends on what the original contract contains, some agents are making sure they get paid for longer than others.

Unfortunatly its not just London, it happens all over.

Can you not just go onto a periodic tenancy? It's not as secure of course as your tenants only have to give you a months notice, but if they've already been there 4 years they're clearly not in any hurry to move out. We did this with our tenants, and though the lettings agency did try to collect, they did eventually accept that no lease renewal = no lease renewal fee!

Thanks for posts - sorry, haven't looked at thread for a couple of weeks. Oldyellow, I will look into the periodic tenancy thing, thanks.