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Need some advice from Landlords

32 replies

LyraSilvertongue · 16/09/2009 09:27

We have tenants in our rental property who signed up for a year. The year is nearly up and they want to renew.
Do we have to pay another fee to the lettings agency who found the tenants for us? We manage the property ourselves and are keen to avoid having to pay another 7% lump sum to the agency for not doing anything.

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howdidthishappenthen · 16/09/2009 10:55

Hamptons are incorrect, and you should ask them to refer the matter to their legal team again - this case applies generically. It is because the clause has been judged to be automatically unfair under the Unfair Terms in Consumer Contracts legislation. This means it makes absolutely no difference whether it is in your contract or not, they cannot enforce it. Even if you're using an agency's fully managed service, after the 'initial term' has expired (i.e the 12 months of a 12 month tenancy) you are entirely at liberty to serve notice on your agency (either in line with their T&Cs, or if the T&Cs have no provision for cancellation, by giving one months' notice) and take over the management yourself, and no further fees are due. Again, it makes no difference if their contract says you can't do this, or it says that fees are due for the duration that tenants introduced by them are in occupancy - these are unfair terms and can't be enforced. I have rejected claims for renewal fees for several dozen properties on these grounds, successfully every time.

LyraSilvertongue · 16/09/2009 10:58

Howdid, can I ask what you do? You seem very knowledgeable on this subject.

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FiveGoMadInDorset · 16/09/2009 10:58

I have never paid a renewal fee for extending a lease.

scaryteacher · 16/09/2009 13:00

Nor have I 5go mad....I paid my letting Agents when they found the tenants, and I pay them each month as they manage the house for me as I am abroad; but they didn't charge me more when the tenancy agreement was up; it just became a rolling agreement with 1 months their side and 2 months mine.

howdidthishappenthen · 16/09/2009 16:48

Co-owner of a London property management business and private landlord of 20 properties. Spend a looooot of time advising clients on this one..

LyraSilvertongue · 16/09/2009 16:49

So you really know what you're talking about then.
Thanks so much for the advice.
If the agents try to invoice me I shall tell them to shove it, in the politest possible way, of course

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LyraSilvertongue · 16/09/2009 16:51

If I don't pay, I guess the worst they can do is try and sue me for the money. I don't like their chances in court.

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