UK Landlord Forum / Life

Hi people, as a novice second time round landlord I stupidly signed an agreement to pay the letting agent 3% of the annual rent plus vat each year whilst the tenant is occupying my property.

Its a bit of a long story, but the agent didnt explain this.  Back in March he threatened court action and I did some homework, told him he was being unfair, even offered him a third of his fee which he refused.

The first time I rented a property this fee did not apply (it was a different agent).  My dealings with this agent were mainly over the phone and i just signed the paperwork when it was sent through as I was keen to move.

Now I have a letter from a solicitor threatening legal action to recover the fees (just under £500, and the tenant was charged £80 as well).

Can anyone give me any tips/advice?  Do I stand a chance at winning if we go to court?

I would apreciate any comments.

Thanks

Elena

By the way this was supposed to be an agreement where the agent found me a tenant and I sorted everything else out.  I only live 3 miles away and manage the property myself.

Are the terms and conditions of the renewal fee clearly stated in the contract you signed? If it's not, that's your escape route.

Renewal fees are unfair, but becoming extremely common, unfortunately.

I'm new to the forum and a relatively new landlord. I'd be grateful for any advice/experience of agents' renewal fees. I'm paying 9% for them to find me a tenant, credit check them and draw up the tenancy agreement (one year) but am managing the property myself. They're trying to charge me 9% on renewal too but I know this is over the top and I should be getting a reduced rate. What sort of figure should I be aiming for?
"Renewal fees" have to be "reasonable" and reflect the amount of work undertaken. Proper renewal means the drawing up of a new tenancy agreement otherwise all you end up with is a periodic tenancy and there's absolutely no need for anybody to do anything.

As the tenancy is a let only, then there shouldn't be renewal fees as the agent's involvement ceased when the tenant took up the tenancy. It's just a way of trying to make extra income for no effort, on which the OFT frowns.

Your terms of business agreement with the agent should not extend beyond the introduction of the tenant for "let only"; they can't have it both ways - they either just introduce a tenant or they manage it! If a term is unfair or onerous it is open to challenge by yourself via your local Trading Standard

People always try to take the easy way out to save a few dollars and think, when nothing is round the corner to bite them, they are really smart people comes. Odds in your favor, especially when you are out for a landlord and is looking for ways to earn more money are not.