I'm being charged 8% to extend tenancy renewal fees!

[LondonSuperTrooper]

Hi all,

I am renting my flat out via an estate agent (without any management fees). The lease is due to come up for renewal. I've just had a call from the estate agent who found me a tenant last year. They are proposing to charge me 8% of annual rent income to renew the lease. I think that this is a complete rip off as I paid them last year 12% for finding the tenant.

Please can you advice me of what my options are? Must I renew the lease through them (apprently renewal fees are in the small print of the contract)? She is telling me that I will be in breach of contract if I try & sign him up myself as they found the tenant..... furthermore she gave me a huge spiel about security depoist scheme etc.

What would you do?

Thanks.

I would ask for a written quote to end the contract. That should knock them into at least reducing the 8%. However round here you have to pay 8% or thereabouts anyway for management fees so I think you've done pretty well (thought not with the 12% for finding the tenant.)

Thanks so much for your advice. I have just e-mailed the agent asking for a quote to terminate the agreement & will have to wait for their response now.

BTW, I am managing the flat myself. I guess it serves me right for not reading the small print!

My parents got caught in the same way - it's buried in the small print. For as long as the tenants which the agents found are in occupation, they have to pay 8% per annum - even if my parents terminate the contract. It's iniquitous, but common with London agents, so it's a good lesson on reading small print.

I know, it just doesn't seem fair..... now I'm stomping my feet!

Well, I am hoping to hear back from the EA. Will update this thread once I get an answer.

Even if you turned it into a rolling contract, for as long as the original tenants are in occupation, the agents will charge an annual fee.....

Toughasoldboots - I have been thinking about periodic tenancy but am worried about the 1 month notice that the tenants gives if they want to move out. I'm more comfortable with the current 2 months notice.

Panic, my understanding is that if it goes into periodic tenancy then there is no charge.... I ahve asked this but they still haven't confirmed it in writing.

There is no way that I can get out of this contract is there? :(

My parents asked this (I am a chartered surveyor so gave the same advice) but because of the way their contract is worded, they ARE still due a fee.

Check your contract and see what it actually says.

Thanks Panic. I'll be checking it tonight.