LETTING AGENT FEES

[JAGDEP]

Hope someone can help - I have rented my flat out for two years to the same tenant at not the best rate in the world, what cripples me each year are the recurring fees from the agent for initially introducing the tenant and the fact they expect payment on each year renewal in full

IS THERE ANY WAY I CAN GET OUT OF THIS OR AT LEAST PAY A NOMINAL FEE

Thanks in advance

Jag

[Trenners]

Hi Jagdep,

This has come up before on the forum. If you signed up to the payment of a recurring fee when you instructed the letting agent in the first place then I don't see an easy way of getting out of that contract.

Some forum members will argue that the terms of the contract are "unfair" - but the fact remains that you agreed to those terms and you were happy to agree when the place was empty.

If you want to try and get out of this contract then you should 1) evict the tenant by terminating the tenancy 2) end the contract with the letting agent and 3) find yourself a new tenant without involving the letting agent.

I would comment, though, that you might end up with a void period whilst you look for a new tenant and the lost rent might well be MORE than the agents annual recurring fee. You might also end up with a worse tenant than you have now.

My advice - don't rock the boat - hang on to a good tenant - pay the fee until the tenant decides to leave - then find the next tenant yourself.

Good luck,

Mark

[JAGDEP]

Mark

Thanks - Honest but true I guess, appreciated

Jag

[Melboy]

Like Mark T says there is not a lot you can do about this at the moment.

This question often crops up here on the Forum and all I can say to any Landlord is to double check your contract to ensure that this clause is not within your contract.

My own personal view is that if you are paying a fee for Tenant finding only then that one off payment should be it. The average fee in Swindon is around £450 inc VAT. I know of only one major company in the Swindon area who charges for extended contract fee's and I activly go out of my way to advise people, when asked, that they should not use them because I feel it is a rip-off.

Mel.

[GPEL]

I agree with Mel on this. There are good examples to support that the pricing structure you may have initially signed for is no longer acceptable. The service provided was a one-time only activity therefore no grounds for repetitive charging.

Any contract is potentially re-negotiable. In addition to other options given for consideration, if the agent found you a good tenant, and you may wish to use the agent's services again, put it to them that you'd like to review your current agreement. They may agree in order to gain your loyalty and future business. Plus, if you're letting at a rate below market norms, consider a rent rise.