Rent increase

Topsy1_2

Guy_Montag wrote: »

That tends to shut them up. Secondly the £100 agent's fee is !!!!!!!!. If they insist on re-newing the contract, ask them for a break down of the fee. You may be able to reclaim the fees if they are deemed "unreasonable" by a court - but just the hint of this may be enough to put the agent off.

It won't put them off. The renewal fee will have been laid out in the agency terms and conditions and was presumably signed by the tenant. Therefore the tenant agreed to the terms at the start of the contract and therefore there is no argument. If the tenant wasn't happy with a possible renewal fee at the start of the process then that should have been brought up with the agent before any tenancy was signed.

Everyone seems to think that LA should work for nothing. What, precisely, is wrong with charging a fee for a service rendered? Solictors, surveyors, accountants etc all do it. Why is it so different for a letting agent?

How else is a LA, (or any other professional for that matter), going to pay for rent, utilities, salaries, stationary, expertise etc, than by charging for services supplied?

It should also be bourne in mind that LA are "employed" by LLs and therefore if the LL wants a renewal contract, rather than allowing a less secure periodic tenancy, then the LA has to pursue that.

Innys

Topsy, I have to disagree with you.

Letting agents charge fees when the tenancy is first taken out - fair enough. As you say, they have to cover their costs.

BUT, after a year, when the tenancy is to be renewed, what additional costs to they incur - other than the occassional phone call or letter? It's not as if they have to market the property or show people around, is it?

I suppose I'm coming at it from the other perspective, as a landlord. Agents charge landlords renewal fees too. Why? Invariably, I have to negiotiate with my tenants if they want to renew, so why should the agent get a cut of the renewed rent? At least it's tax allowable, I guess.

The crucial point is this. Some agents do not charge a few at renewal, for landlords at least. And their rates are no more - often less- than other agents. Presumably they have the same bills to pay so how do they manage? When my tenancy expires, I will not readvertise through my current agent, I will go to one that doesn't charge a fee at renewal.

Guy_Montag

Topsy1 wrote: »

It won't put them off. The renewal fee will have been laid out in the agency terms and conditions and was presumably signed by the tenant. Therefore the tenant agreed to the terms at the start of the contract and therefore there is no argument. If the tenant wasn't happy with a possible renewal fee at the start of the process then that should have been brought up with the agent before any tenancy was signed.

These seem to be like illegal bank charges (yes they were there in the small print, yes we signed an agreement, no they're not legal). The LA needs to show that they are doing work enough to justify their charges, just like banks.

thesaint

Guy_Montag wrote: »

These seem to be like illegal bank charges (yes they were there in the small print, yes we signed an agreement, no they're not legal). The LA needs to show that they are doing work enough to justify their charges, just like banks.

Bank charges have not been deemed illegal.

BoingBoing_2

My LL is putting up my rent in August, until I told him I'd started looking around for another property...... now he's told me he will keep the rent at the same price for another year if I'll stay! It's always worth telling your LL that you'll start looking around, if they mention a rent increase. A good sitting tennant is better than having an empty property.