Letting agents break of contract fees

margarino

Hello,

I am about to join an established house share that has signed a one year agreement. As the person leaving has not fulfilled the one year the agency are charging a £200 fee, which i find extortionate. The agency failed to tell the current tenants about this fee until recently and there appears to be some wording about administration costs in the contract but no specifics about how much they will charge. As the only thing they have to do is change the name on the contract (the deposit remains as i am paying the person who is leaving directly) and check my references, are they legally allowed to charge so much in fees?

Thanks for any help.

Fire_Fox

There is no need to explain charges for changing tenants mid-way through a tenancy as this isn't supposed to be happening - it's a legally binding contract. The letting agents are supposed to minimise costs, but that doesn't mean making a loss. Taking up references and doing credit checks is a time-consuming business.

What concern is it of yours how much is being charged to the outgoing tenant? Is a new inventory being done when they move out and when you move in as the old one won't apply to you? To be honest if you don't like the way this agency operates I would not be moving into one of their houses!

margarino

It's my concern because i'm the one paying the brunt of the costs! All i wanted to know was the legal side of things. I didn't realise it would cost so much to change a name on a contract and ring up two people. My mistake. There is no inventory being done or anything else, they are just simply changing the contract and ringing up my work and landlord.

margarino

And i wasn't told about the costs until i had paid the deposit and first months rent 2 weeks in advance of my moving in. I am now moving in on Monday and was just told yesterday of these additional costs so i don't like my chances of ever seeing my money again if i pull out now.

Jowo_2

Speak to Shelter who provide free expert to tenants on the legality of this. It is the norm for a tenant to pay an agency fees associated with their tenancy and fairly good practice for a tenant to check the costs before viewing...

Having said that the production of an unmentioned bill after moving in is poor. An outgoing tenant is often made to pay expenses associated with the early relet of the property as a condition of being permitted to surrender it early. An incoming tenant does normally pay fees associated with the tenant checks, new contract, etc.

Your agent didn't just change over a name on the document and ring a couple of people in order to resolve the original breach of contract, though it feels like that to you. They may have spent significant expense, time and effort finding landlords to give them business in the first place, marketing their properties,undertaking viewings and so forth. This took place in an office that has employees and bills to pay.

As you have just learned, businesses aren't charities and don't charge the 'actual' cost of doing the work, in the same way that your employer also operates with its customers.

adg1

IMHO £200 seems very high simply to change the name on a tenancy agreement and take up 2/3 references - its probably their normal admin fee though. Check through the original Application for Tenancy terms as the charges may well be detailed there - get a new application form through the agency to read through.

Friends of mine were charged £80+vat when they had to get a new tenant, which the outgoing tenant paid as he was causing all the hassle.