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Letting Agent Renewal Fees - Do we still have to pay?

5 replies

HappyBump · 03/03/2010 18:10

I'm a landlord and my existing tenant wishes to renew at the same rent (which I am okay about). My agent wants to charge me the full commission of re-letting to to the same tenant. I found this article below

www.guardian.co.uk/money/2009/jul/10/foxtons-oft-lettings-battle

However, I am not clear what this means. Do I have to pay the extortionate renewal fees? I suggested a reduced amount (I haven't heard back yet) ... but now I am wondering if I should be paying anything.

Anyone have any recent experience with re-letting a property to existing tenants?

OP posts:
NL3 · 03/03/2010 18:13

I'd also be interested in a response to this - our agent is also attempting to charge us the full renewal fee for a re-let to existing tenants.
TIA

mranchovy · 03/03/2010 18:24

There was something on Money Box on Radio 4 today about this, but I can't remember the details - not on listen again yet.

caykon · 03/03/2010 18:38

we only ever pay fees if we are getting a new tenant. They don't even charge for a renewel if the rent changes as long as its the same tenant.
Don't know if thats any help

scaryteacher · 04/03/2010 13:10

My tenants have been in my property for over 2 years, and are on a rolling tenancy. They take out the six month assured shorthold and once that is up it just rolls on with one month notice to quit on their side and 2 months on ours. We only pay fees for a brand new tenancy with different tenants.

HappyBump · 06/03/2010 10:22

I thought I'd give an update. I agreed with my agent to pay 3%, deducted each month. Since they collect the rent for us (albeit by standing order I think), so I guess they do provide some service. This was a negotiation down from the original 8% payable upfront.

Whilst they are still getting money for nothing ... my terms and conditions do seem to state that I have to pay. The property is in London and I live overseas.

I looked up some more info on the Foxtons case. It seems that people are still expected to pay the ongoing fees. Foxtons were just told to state it clearly in writing rather than hide it in the small print.

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