letting agent's fee

[Ted]

I found a tenant through a letting agent six months ago, it was the 'let only' service that I used. I paid the letting agent the fee for the 1st six month contract.

The contract is due to expired, I drew up another new six months contract privately with the tenant, somehow, the letting agent learned about it and they sent me a bill, charging me a new lot of agent's commission fee, which I'd never experienced before, usually I paid the one-off fee when a letting agent 1st found the tenant, and that's it, no more additional fee.

I've just noticed that the agreement between myself and this letting agent says that "Let Only Fee: Payment of 50% of 1st month rent + vat per 6 month contract".

Now, if I do not sign a new contract with my tenant, and just let my tenant to stay on with the 'Statutory Periodic Tenancy' status, I should be able to avoid to pay the new lot of agency fee, right? Because there will be no new contract. Do you think I can put forward this agruement with the letting agent?

Any comments will be most welcome!

[Landlord Insurance Direct]

i have a feeling this situation has been covered a few times before and the general census was that this is an unfair term, or at the very least they would have hard time getting any money out of you. i am sure one person said that the local trading standards took a dim view of this sort of thing and that if you tell the agent that you are going to speak to them then they will often back down

[Ted]

The problem is that this letting agent has just found me a new tenant for a different flat that I got, they simply help themselves took the money from the 1st month rent and deposit of the new tenancy. I virtually received no money from them, but two big fat statements.

I thought if I convince my old tenant that we destroyed the new contract and revert it back to 'Statutory Periodic Tenancy' status. I could say to the agent that there is no new fixed contract. Will it work?

[Melboy]

Ted

I normally do what you have just done.....pay an up front, one off fee to a Letting Agent to secure a Tenant for me etc. I have done this for many years without any problems at all with Tenants carrying on in some cases for 3 years.

It would appear that what you have experienced is the latest money grabbing idea by your Letting Agent to screw more money out of you and I can tell you it is highly irregular for them to do this as the vast majority of LA's do not adopt this underhand trick in the small print.

I have had this put on me but I was fortunate enough to spot it and got the clause removed from the contract before signing anything.

If you can, refuse to pay this money! You have multiple properties and they need your business. If they don't co-operate then tell the World of their underhand business dealings.

[Ted]

Ted

I normally do what you have just done.....pay an up front, one off fee to a Letting Agent to secure a Tenant for me etc. I have done this for many years without any problems at all with Tenants carrying on in some cases for 3 years.

It would appear that what you have experienced is the latest money grabbing idea by your Letting Agent to screw more money out of you and I can tell you it is highly irregular for them to do this as the vast majority of LA's do not adopt this underhand trick in the small print.

I have had this put on me but I was fortunate enough to spot it and got the clause removed from the contract before signing anything.

If you can, refuse to pay this money! You have multiple properties and they need your business. If they don't co-operate then tell the World of their underhand business dealings.

Many thanks for your support! I did write to the letting agent to protest, I'm now waiting to hear from them.

Ted