Letting agency advice (Extortion)

jjlandlord

djpleasure wrote: »

No, my issue is not as you put it, my issue is doubling a fee is extortion and plainly wrong. A free society is open to abuse as is clearly the case here.

There is no abuse or extortion: As said you are free not to renew and thus not pay.

You'll probably be able to stay on on a periodic tenancy.

djpleasure

yes and with a periodic or rolling tenancy I have very little rights or security, so it is a case of the letting agent having you by the knackers. I am pretty sure if a similar situation occurred non housing with you and they doubled something, you would not be happy. When you sign the dotted line on initial lease, their is no mention by letting agent in regards to renewal fees, let alone their flexibility to change as and when it suits to how much. As if it was made clear, I would have given it a wide birth. There has to be a cap to this or it verges on the ridiculous. Having spoken to several people about this issue, 95% say the rise is atrocious and wrong. Saying you have the choice not to renew is hardly helpful, when you need a secure tenancy. Not renewing = no security

jjlandlord

Ah, you should have said from the get go that your post was just a rant because you couldn't have your cake and eat it too.

djpleasure

omg, says it all fella, says it all, no chance of cake, Unscrupulous letting agents prevent the affordability of cake. Your views by the way are not open or fair, they are very bias to say the least, well at least when it comes to housing. I think you need not bother reply again

Pixie5740

Shelter are running a campaign to End Letting Fees in England. Sign the petition.

As for paying the renewal fee that's up to you. Stick or twist. You would like to think that the landlord wouldn't get rid of a decent tenant on a periodic tenancy just because he/she didn't want to renew with a fixed term. Then again there are some genuinely ignorant letting agencies out there who believe that you have to renew, and the landlords they work for sometimes believe them unfortunately.

nirajn123

It is a free market.
They are free to propose any price they wish and you are free to accept or refuse.

Well, I am all for free markets and firmly believe people are entitled to make money as long as they work for it. But this is an inefficient free market (google Market Failure). Agents are charging for no valuable service whatsoever as the contract can roll over without the need of unnecessary 'admin costs'.

If you must defend free market, why not defend for access to Rightmove for everyone and not just estate agents. Even in most capitalistic economy, there are markets that need regulations - and this is a classic case for it.

G_M

Your options as explained are

* pay the fee and renew for a year
* decline to pay and go periodic. Yes, less security, but given the LL wants to renew for a year it seems he's likely to let you stay for a year
* negotiate the fee with the agent (eg back to £52)
* negotiate a longer fixed term eg 2 or 3 years. Both you and the LL get greater security, and no renewal fee next year
* bypass the agent and dscuss with the LL, either
a) he pays your fee
b) he tells his agent to arrange 2 year contract
c) he reassures you you'll be secure if you go periodic

jjlandlord

nirajn123 wrote: »

Well, I am all for free markets and firmly believe people are entitled to make money as long as they work for it. But this is an inefficient free market (google Market Failure). Agents are charging for no valuable service whatsoever as the contract can roll over without the need of unnecessary 'admin costs'.

In a free market you can charge up to what people will pay, not based on your work or costs.

martindow

jjlandlord wrote: »

In a free market you can charge up to what people will pay, not based on your work or costs.

This to me is a definition of a failed market. Market forces work in some situations but they often need some oversight or control to stop exploitation and imbalance.

When you play Monopoly one person wins and the others are bankrupted. Completely free unregulated markets can end up operating in ways that can very detrimental to many people.

djpleasure

In a free market you can charge up to what people will pay? what rubbish, it is not what ""People will pay" you are forcing the hand. A letting Agent should look after its Landlords and Tenants. Quoting Free Market does not make it right and it is exactly this kind of abuse that will end the so called free market and force regulation, the losers will be the Landlords and Agents, how the tables will turn.

Petition signed and shared on FB, cannot wait for the day that Letting Agencies and Landlords are Regulated. Your day will come, mark my words.