12.5% + VAT for letting renewal ?

Moneycantbuyyourhappiness

Is it standard practice to charge 12.5% for tenancy renewal ? Am I reading this correctly ? I need to pay 12.5% every single year ?_pale_

The term and condition states "In the event that the initial tenancy is extended, whether or not negotiated by xxxxx, a fee of 12.5% + VAT of the gross rent for the full term of the renewal is payable in advance at the commencement of each renewal and is payable throughout the entire period that the tenant remains in occupation of the property."

Guest101

You're a landlord, correct?


- the clause is terrible, just don't renew and you don't owe anything

newbie1980

Moneycantbuyyourhappiness wrote: »

Is it standard practice to charge 12.5% for tenancy renewal ? Am I reading this correctly ? I need to pay 12.5% every single year ?_pale_

The term and condition states "In the event that the initial tenancy is extended, whether or not negotiated by xxxxx, a fee of 12.5% + VAT of the gross rent for the full term of the renewal is payable in advance at the commencement of each renewal and is payable throughout the entire period that the tenant remains in occupation of the property."

thats what its saying

i would just allow tennant to go on periodic rolling

this will become more of the norm once tennants fees are scrapped

Moneycantbuyyourhappiness

Guest101 wrote: »

You're a landlord, correct?


- the clause is terrible, just don't renew and you don't owe anything

Yes, I am. Is this some kind of extortion ? _pale_

Bob_Bank_Spanker_2

Do it yourself and save the fees. They used to charge the tenants, this is soon to be outlawed so now they are trying to shift it onto you. Imagine what it used to be like for your poor tenants!

Guest101

Moneycantbuyyourhappiness wrote: »

Yes, I am. Is this some kind of extortion ? _pale_

No?


You're asking the agent to provide you a service, they are charging you a fee to do so, if you don't want to pay, don't use the service.


It's common. But since you don't have to renew and just le the tenancy go periodic, just do that

Guest101

Bob_Bank_Spanker wrote: »

Do it yourself and save the fees. They used to charge the tenants, this is soon to be outlawed so now they are trying to shift it onto you. Imagine what it used to be like for your poor tenants!

Actually used to charge both parties*

theartfullodger

In your shoes I would instruct tenant to pay me direct, get all copies of all documents (including photos of check-in) then fire agent & see if he sues. I doubt any reasonable, rational, judge would permit that clause:

But not all judges are reasonable & rational.

saajan_12

Guest101 wrote: »

No?


You're asking the agent to provide you a service, they are charging you a fee to do so, if you don't want to pay, don't use the service.


It's common. But since you don't have to renew and just le the tenancy go periodic, just do that

No, the contract expects a fee if the tenancy is renewed, "whether or not negotiated by xxxxx".

So even if the LL used no further services of the LA, but the tenant / LL wanted the security of a fixed term and were happy to negotiate / draft / sign a contract themselves, the LL is still liable for the 12.5% fee. That is extortion.

G_M

* Letting agents: how should a landlord select or sack?

Guest101

saajan_12 wrote: »

No, the contract expects a fee if the tenancy is renewed, "whether or not negotiated by xxxxx".

So even if the LL used no further services of the LA, but the tenant / LL wanted the security of a fixed term and were happy to negotiate / draft / sign a contract themselves, the LL is still liable for the 12.5% fee. That is extortion.

What? The LL doesn't have to agree to the term, and the agent doesn't have to negotiate