Agency fee - to pay or not to pay?

psychostudy

Hi - have been in rented flat since last Feb. Tenancy due to end August 31. Rang agency (homes 4 u) to ask if the rent would increase when we renew (it did last time). They checked with owner and said no. Great!

Then they said the owner has decided to manage the property herself and we can now have a rolling contract. BUT we still have to pay the agency's re-sign fee - a whopping £189.91.

Question is - why do I have to pay an agency fee when they soon will not be managing the property?

Unfortunately have no contact details or even name for the owner.

Do I simply sit tight, not pay the fee, not re-sign with the agency and wait hopefully for the owner to contact me?

Or pay Homes 4 U (who by the way would win several awards for the worst customer service ever) their fee for a simple life?

Anyone else been in this situation?

Any advice gratefully received and apologies if I'm repeating someone else's thread!

silvercar

if the contract is becoming periodic you are not resigning for another year. I don't see why you need to pay.

The landlord has an obligation to notify you of their address.

Do I simply sit tight, not pay the fee, not re-sign with the agency and wait hopefully for the owner to contact me?

Sounds a good plan.

ehs_3

Sounds to me like the agency are trying it on. Even if the landlord was staying with them I very doubt you would have had to pay the fee.

Check the documents you signed at the beginning of tenancy

psychostudy

Thanks for the replies.

Homes 4 U have a policy that each time you re-sign a letting contract you must pay one weeks rent plus VAT. It's just their way of screwing yet more money out of their tenants.

I think I'll just bide my time and fingers crossed the owner has some sense and will contact us.

Cheers.

ehs_3

It seems incredible that Homes4U can charge that. Check this with a lawyer as it isn't legal advice but if you don't sign a renewal contract you may automatically move onto a "rolling contract" which effectively means that neither you nor the landlord are tied into any fixed period. Most agencies I am aware of will charge a small fee of around £25 if a tenant wants another fixed-term contract but nothing quite like what you are being quoted!

Good luck!

psychostudy

Thanks - incredible it may be but unfortunately this appears to be perfectly legal. And if you don't pay it, you don't get the property.

When questioned what the re-sign fee is for Homes 4 U say 'references and setting up a new standing order'. Since I've been in the same job for five years and in this flat for nearly 2 years no new reference nor standing order is needed.

What also gets my goat is that when you pay this ridiculous fee you do at least expect a certain level of competence from them. Last year we paid the fee, signed a contract, and 2 weeks later were woken by an agent showing round another prospective tenant!! I could do a big list of how awful they are but it's just too depressing.

If anyone was thinking of using Homes 4 U then please re-consider. They are shockingly bad.

I've decided to be proactive with this anyway and have written to the landlady. Found her address on the standard 2 month notice to quit (sent in May, contract up in Sept??!). I've told her about the agency demanding this fee and asked if we can sort out an AST between ourselves. Hopefully she'll be ok! If not then I guess there are plenty of other flats out there.

If anyone knows an agency that rents out city centre flats in Manchester who doesn't change insane re-sign and administration fees I'd be super grateful if you could let me know!

Thanks!