estate agent lettings fee

bettersoon

Hi all,

we've just rented out our house on the 1st august and have signed with an agent to do all the hard work (DSP) . However we were due our first month rent the first monday of august but had nothing so i waited till the thursday and still heard nothing from our agent! I coulnt even get hold of anyone in lettings for any update/answers. eventually our agent called back on thursday with a very defensive tone! I couldnt get a word in, she wasnt apologetic just said that our deal has been sealed and closed so theres nothin else she needs to be doing! she said the cheque is on its way to us. i asked her is it the first months rent, she said yes, £125, i asked hey why so little she said its less our fees! so they deducted a whole years fee! i didnt realise we had to pay in advance and dont like the idea too as once thye have taken our money I can imagine the kind of service we will be getting!She said they dont take it monthly as its not profitable for them.... so have agreed on splitting it over 3 months. Do all agents take a whole years fee in advance? Anyway, they cancelled the cheque but said they not recieved a dd mandate form from us so we posted it last monday but still not recieved anything (she said she'll do bank transfer).. so i've been trying to get hold of them all day today since 9am to see if they have recieved our mandate but only got a real person answering about 1pm...but she said no one from lettings in and to call back in an hour. i aske dif she could help and have look at my file (i cant believe theres never anyone in the office who can deal with lettings) she said "no, i already told u its a different department" then slammed the phone down on me!

Is this how it's suppose to be? We had less hassle and trouble with our previous tenants when we did it ourselfs!

When can we cancel our coontract with them? I know i need to read our agreement but its upstairs heh

princeofpounds

I think if you had read your agreement then you would be able to answer your own questions. By and large your entire relationship with the agent is governed by that contract, as well as any standard T&Cs you may have accepted. Whilst consumer law provides some protection over contract law (for example, unfair terms) these protections are not all that advanced for landlords because they are assumed to be businesspeople (and they are).

Frankly the experience you are having is typical of many letting agents. Whilst there are good ones the standards of professionalism in the industry are pretty low. At least that's my opinion and the opinion of a good proportion of people I'd imagine!

The specific replies to all your questions really relates to whether you have agreed these things in your contract and what sort of tenancy was created (for instance, are they taking 1yrs fee for 6 months contract?), so I cannot answer them.

If the service is already so bad I recommend that you look at cancelling the relationship at the earliest possible opportunity. They will probably get quite nasty about this, but all you have to do is make sure that you stick to the procedure in your contract, communicate in writing and recorded delivery if necessary, make sure that you establish direct contact with the tenant and serve the correct notification of a change in where they should pay their rent (if necessary). They may also try to sting you with ongoing renewal charges - refer them to OFT vs. Foxtons case to help defend against that.

adg1

princeofpounds wrote: »

They may also try to sting you with ongoing renewal charges - refer them to OFT vs. Foxtons case to help defend against that.

Which would also be in your contract - renewal fees are not illegal, just that you have to be made aware of them in the lettings terms and conditions.

OP - All your questions are answerable by reading the aggreement you signed with the agent. Not all agents take fees monthly. Some do it up front as their costs are up front for the marketing of your property.

Read your contract you signed with the agent and confirm they have acted in accordance with them. If you are unhappy his time around move agents for next time you have to tenant find.

princeofpounds

Which would also be in your contract - renewal fees are not illegal, just that you have to be made aware of them in the lettings terms and conditions.

Although I agree that they can still in theory be charged, actually that's not quite the case - in OFT vs. Foxtons it was found that they were unfair (which is not the same as illegal) precisely because they were buried in the contract but not brought to prominence which the court found they had a duty to do given the significance of the term.

Given that most estate agent's standard practice was the burying of these in the small print, it will probably be quite hard to get away with it on past contracts, although ultimately only a court case can decide.

adg1

princeofpounds wrote: »

Although I agree that they can still in theory be charged, actually that's not quite the case - in OFT vs. Foxtons it was found that they were unfair (which is not the same as illegal) precisely because they were buried in the contract but not brought to prominence which the court found they had a duty to do given the significance of the term.

During the case the judge agreed that renewal fees were not always unfair, a u-turn on their original position. He did, though, stress that landlords should be made fully aware of how they work in order for them to be acceptable.

princeofpounds wrote: »

Given that most estate agent's standard practice was the burying of these in the small print.

This is definitely wrong and needs to be addressed which I believe will be the main outcome of the case. As long as landlords are acutely aware of what these are then there should be no cause for complaint. If you don't agree with them then sign up with an agent who doesn't charge them or let tenancies run to periodic.

bettersoon

My partner just read the agreement and it says the fee is taken off our rent monthly and as long as the tenancy which is 6 months...so with them wanting to charge us for the whole year was rediculous, and making out like they are doing me a favour by splitting it in 3 payments. tut! can we contest the 3 part payment? I feel really gutted taht we didnt read the agreement properly. Just thought it would be sooo straight forward!

Fire_Fox

You obviously need to write to the agents quoting the relevant parts of the contract you signed and expressing your reservations about the service you have received to date.

princeofpounds

You obviously need to write to the agents quoting the relevant parts of the contract you signed and expressing your reservations about the service you have received to date.

Yes, and you need to TELL them to stick with the contractual arrangement, not request it. And set a time limit.

Fire_Fox

princeofpounds wrote: »

Yes, and you need to TELL them to stick with the contractual arrangement, not request it. And set a time limit.

A time limit for what?

princeofpounds

A time limit for what?

Sorry, for returning the money minus the monthly fee rather than a spurious annual fee.