UK Landlord Forum / Life

As first time landlords, we are just coming to the end of the 12month tennancy agreement and would like to terminate our Letting Agents services and "go it alone". However, our letting agent has just told us that we must continue to pay the 8% letting fee indefinitely, untill the tennents that they supplied have moved out of the property!!!

Apparently, this is in their "Terms of business", which we have only just been given, upon requesting it. Looking at this document, it does indeed say under a section entitled "Renewing or extending the tenancy" that "if you choose to negotiate directly with your tennant, then our letting fee continues to be payable for the duration of the time that the tennent introduced by us remains in the property"

Surely this cannot be upheld? I was happy to pay the 8% (monthly installments) for the 12 month tennancy agreement, but dont see that I should have to continue paying this afterwards? Also, by default they chose for us to pay this fee by installments, rather than an up front in advance (which I have now noticed was an option). Surely, if you can pay in advance it must be for a limited time period?

The letting agents are members of The Property Ombudsman. I have had a quick look at the "Code of Practice for Residential Letting Agents" that they should adhere to, and under section 3b. (Instructions, Terms of business, Fees, Charges and Termination of Client Agreement) it states that "the client shoud be required to sign a copy of the Terms of Business which you should hold on file and the client must be given a copy to retain". I'm pretty sure this didn't happen, so does that allow me to get out of continuing to pay the letting fee after the 12 months? 

Please can anyone provide some advise? 

Hi,

This issue was recently covered here: https://www.landlordforumproject.co.uk/landlord-advice-help/fees-for-2nd-year-of-tenancy/