Another rip-off ripe for Martin's investigation?

msfender

I let a property and my tenants have just signed a new 6 month lease. My agent charged me a £125 plus vat and the two tenants £50 each for this. I'm sure this is common practice across the lettings business and I'd be interested to know how these costs are justified merely to have existing tenants stay on.

thesaint

Business to business transactions are a different animal to consumer law. I wonder why you signed an agreement with this in place.

benood

I suppose you would be even more irate if they'd forgotten to get a new contact signed.

Why don't you agree with the agent how much the fee will be for roll over contracts in future - perhaps you will be able to knock him down, if not get another agent.

dunstonh

You are a business, they are a business. You are paying business costs.

dannyboycey

I may be wrong, but I think there has been a change in the law regarding these charges. I would look into this if I were you.

Topsy1_2

I don't think there has been a change in the law regarding admin costs.

Yes, it is common practice across letting agents, however, £225, plus vat does seem rather high. In addition to standard business costs - light, heat, stationary, salaries etc - costs may also cover re-referencing in case tenants' position has changed and cost of drawing up the tenancy agreement, which is a legal document.

I used to offer a tenancy agreement only service for LLs would let and managed their own property but weren't sure about the paperwork, and would charge £50.00 just for cost of drawing up correct, full agreements and issuing to the tenants. If tenants needed to be referenced, this increased by £25.00 per tenant as a full credit check cost approx £25.00 per person, so say an average of £100 for a tenancy agreement, which is what a renewal basically is.

However, renewals can take up quite abit of time in chasing tenants and LLs about whether they want to renew, getting it in writing from them, getting agreements sent out to be signed and returned by the tenant, and then to the LL etc. Its not just a quick 5 minute job involving printing an updated agreement off on the computer.

jamesd

msfender, you do know that it you don't renew the tenancy becomes a statutory periodic tenancy and they get to stay on with no additional cost for either of you?

You may want to tell your letting agent that you want to operate on that basis to cut down on the renewal churning.

hearts

Get rid of the Letting agent and save the costs ;-)