MarkNich Posted October 8, 2010 Report Share Posted October 8, 2010 I have a property which is let out to a (very good tenant) who was initially found through a letting agent and they were remunerated accordingly for the first year. Now we have entered the second year of the tenancy (with the agency it was a 1 year let) and a private agreement with the tenant (drafted our own agreement). The letting agent say that will still have to pay them 150 GBP per year even though they have had no input whatsoever in the new agreement, it is in the small print of their contract. So my question is, can they do this? Is it worth fighting or should I just give them the money and have done with it? Any imput is very appreciated! Thanks Mark Link to comment Share on other sites More sharing options...
Melboy Posted October 9, 2010 Report Share Posted October 9, 2010 If you paid an initial 'finder's fee' for your tenant to your LA and you are not on a full management arrangement then they cannot ask for more money for subsequent years for the same tenant. Google Foxton's Law Case on this subject regarding follow-on fee's. The judge ruled it as unacceptable to be buried in small print that additional fees will be applied should a tenant remain in occupation after the initial time-lapse. Mel. Link to comment Share on other sites More sharing options...
Trenners Posted October 11, 2010 Report Share Posted October 11, 2010 Hi Mark, I am both a letting agent and a landlord. As Melboy advises, if the contract was a "let only" service then no further fee should be payable to the letting agent - and Foxton case law supports this fact. If you originally opted for a rent collection or a fully managed service then it would be reasonable for the letting agent to ask for a termination fee if you decided to start managing the property yourself at the end of the contract term. Some agents charge equivalent to 3 months management fees to end such an agreement - and these are clearly shown in the terms of business that you would have signed and agreed to at the start of the contract with the letting agency. However, it seems as though your letting agent is demanding an annual fee for doing nothing! I would certainly challenge that fee and would certainly not be forced to pay it annually. It is reasonable to pay a termination fee to the agent (to cover their costs of handing the tenancy over to you to manage) - it is not reasonable to pay an annual fee. I would tell the agent you are not paying the £150 and, if they do not back down, you will never be using any of their services aqain either! Good luck, Mark Link to comment Share on other sites More sharing options...
Nickwell Posted October 15, 2010 Report Share Posted October 15, 2010 Hi I suggest you to approach a solicitor and follow his or her advice . residential conveyancing solicitor Link to comment Share on other sites More sharing options...
Trenners Posted October 17, 2010 Report Share Posted October 17, 2010 Hi I suggest you to approach a solicitor and follow his or her advice . residential conveyancing solicitor No prizes for guessing what "nickwell" probably does for a living .......... Oh .... he is a residential conveyancing solicitor ...... Well fancy that! Link to comment Share on other sites More sharing options...
property lady Posted October 18, 2010 Report Share Posted October 18, 2010 I'm a landlord too - I'm finding my letting agent is charging me too much. I went with them cos they were the ones who found me a tenant but now the tenancy is coming up to the one year agreed and my tenant wants to stay on and I'd like to change to another agent who charges me less. Is that possible? I'm not ready to go it alone yet as I don't know anything about drawing up contracts. I just want to switch to another letting agent who would charge less. From what has been said above, the letting agents can charge separately for finding a tenant and for managing a property. So for me I have a tenant but I would want an agent to manage my property. Can that be done? Link to comment Share on other sites More sharing options...
Mortitia Posted October 18, 2010 Report Share Posted October 18, 2010 It sounds like you entered into a contract with your agent to tenant find and manage? Look at your contract and you will see what you signed up to. To get out of the contract you probably would have to pay quite a lot so carry on and and when the present tenant leaves either try and get a better deal with same agent or go elsewhere. If your agent is good it may be unwise to leave them. Only you can decide. Agents usually act on 3 levels:- 1. Tenant find 2. Tenant find and rent collection 3. Tenant find and full mangement For each of these they charge a different % commission - this will all be it your contract or 'terms of business'. If you paid for tenant find only then the agent should only be charging you commission for the 1st year - check that out. Mortitia Link to comment Share on other sites More sharing options...
property lady Posted October 19, 2010 Report Share Posted October 19, 2010 It sounds like you entered into a contract with your agent to tenant find and manage? Look at your contract and you will see what you signed up to. To get out of the contract you probably would have to pay quite a lot so carry on and and when the present tenant leaves either try and get a better deal with same agent or go elsewhere. If your agent is good it may be unwise to leave them. Only you can decide. Agents usually act on 3 levels:- 1. Tenant find 2. Tenant find and rent collection 3. Tenant find and full mangement For each of these they charge a different % commission - this will all be it your contract or 'terms of business'. If you paid for tenant find only then the agent should only be charging you commission for the 1st year - check that out. Mortitia Thanks. My tenant hasn't said she wants to move out but if she does, I'll shop around next time. I went with my current lettings agent because they found me a tenant when I was desperate to get someone into my property as it was vacant. Being a new landlord, I wasn't aware that there were big differences in commission rates lettings agents charge. The other thing is, I have quite a busy job and so I don't have much time to shop around. I'm not sure the more well-known lettings agents offer the best rates and the best service - it's hard to find out or sign up to enough agents when I market my property to really beable to compare. Link to comment Share on other sites More sharing options...
Mortitia Posted October 19, 2010 Report Share Posted October 19, 2010 Why not do a bit of research while you are waiting for tenant to go and see what boards go up in the locality then look at thier service and costs online or send for thier 'Terms of Business as a potential customer. Try and pick an agent who is NAEA or ARLA registered as that gives you slight protection from some of the rogues. Don't forget your agent's fees are tax deductable or stay with same agent and be cheeky and ask for a reduction - don't ask, don't get! Mortitia Link to comment Share on other sites More sharing options...
property lady Posted October 19, 2010 Report Share Posted October 19, 2010 Why not do a bit of research while you are waiting for tenant to go and see what boards go up in the locality then look at thier service and costs online or send for thier 'Terms of Business as a potential customer. Try and pick an agent who is NAEA or ARLA registered as that gives you slight protection from some of the rogues. Don't forget your agent's fees are tax deductable or stay with same agent and be cheeky and ask for a reduction - don't ask, don't get! Mortitia That's good advice but as I said, I'm very busy and I just don't see myself going through all of that with lots of estate agents. Bit I guess if I don't, I'll just have to stick with what I've got. Link to comment Share on other sites More sharing options...
property lady Posted October 19, 2010 Report Share Posted October 19, 2010 To be honest, I just want to rent out my property efficiently without sweating over it too much and not paying through the roof. I would've thought that was reasonable but easier said than done. Link to comment Share on other sites More sharing options...
SPEEDTWIN Posted October 19, 2010 Report Share Posted October 19, 2010 Be carefull changing from one agent to another, it isnt as straight forward as you may think. It is not just about comparing the commision % from one against the other because all agents have extra charges and you need to find out if they charge for: 1 Intial set up charge 2 Contract renewals 3 Inventories 4 Add extra % on maintenance works arranged. 5 Charge for arranging Gas and or elecy certs 6 Charge for serving any legal notices 7 Charge for inpections or extra ones. 8 Charge for protecting the deposit. Now it is unlikely a agent will charge all of them but differant agents are likely to have differant combinations of them so you have to do your sums for the cheapest. BUT CHEAPEST ISNT ALWAYS THE BEST. There is a saying "pay peanuts and you get monkeys" Link to comment Share on other sites More sharing options...
property lady Posted October 21, 2010 Report Share Posted October 21, 2010 Cheapest isn't always better but at the same time you don't always get what you pay for. Some agents will charge less for doing the same job. For me, I maintain my property very well and there are few problems if any. I am also very approachable so any problems get sorted out very quickly. All the letting agent does for me is find the tenant, sort out the paper work and collect my rent. I pay more for the managing part but I probably don't need it. They may be an excellent managing agent and worth the money but I'll never find out because I haven't really had any problems for them to "manage" yet. Link to comment Share on other sites More sharing options...
Chestnut Posted October 21, 2010 Report Share Posted October 21, 2010 Property lady, You say you haven't really had any problems to 'manage' yet. Consider these two incidences and ask agents how they would respond. 1) Water drips the through the kitchen light fitting at 6.00am? 2) Single loo flush breaks at 8.00am? Both have happened and, needless to say, in each case tenant required immediate response! Test of a good agent? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.