Renewal Fee Charged to Landlord?

LandlordTT

Hi,


As charging a renewal fee a contract is banned, can an agent charge a landlord £50 for renewal instead?
Not sure if charging the fee is correct , seems high as they already get a 10% of the rent anyway.



Also they want to change the 6 month contract to 12 month contract which I assume it for lower frequency of renewals which I thinks makes sense as the tenant has been in the property for 10yrs plus anyway.

theartfullodger

Agent can propose any charge they like: - £3,750 if they wish. You as landlord can propose any change you like - eg drop to 5% of rent.


What do the terms of the agreement you have with agent say about such charges and changes?



Usually (but not always ) both parties should need to agree changes.




6 months always: More flexibility if there's a problem with tenant, thereafter periodic always.

LandlordTT

thanks for the reply.


its looks like my agreement does not mention any other fees apart for 10% commission and says no re letting fee. Also i dont see why they charge £50 for just photocopying the agreement and getting it signed.

parkrunner

They won't want to lose your business for £50 so just say no.

theartfullodger

I'm on significantly less than 10% with one of my agents: At our annual lunch (I paid, a wise investment) I suggested that with the tenant fee legislation I would not necessarily be very upset if they upped their charges to me: Was surprised to hear they had no plans to.


There will be letting agents going out of the sector and a fee going bust:

steampowered

Yes, agents are free to charge landlords.

Landlords are of course in a much stronger position to say "no". So I don't think you'll see landlords getting ripped off with silly charges in the same way that tenants were.

csgohan4

theartfullodger wrote: »

I'm on significantly less than 10% with one of my agents: At our annual lunch (I paid, a wise investment) I suggested that with the tenant fee legislation I would not necessarily be very upset if they upped their charges to me: Was surprised to hear they had no plans to.


There will be letting agents going out of the sector and a fee going bust:

Interesting you have lunch with your agents, is it a local agent or francise?

Brilley

We got charged earlier this year as well as the tenant? I queried it as last year we did not get any charge for the renewal....they kindly offered to reduce the fee from £50 to £35 as a "good will" gesture....like above IO am wondering why I am paying anything for them to simply print off another form for the tenant to sign? Maybe have words with them next year and look to change agent. Luckily we have a good tenant that has not caused them any work for their 10%. If I can sort out a landlords course I will go self managed...(Wales).

G_M

Why renew?


What is wong with letting the tenancy roll over into a periodic AST?


The only advantage ofa fixed term is security ie you know you'll have the rental income for 6 (12, 18 whatever) months.


But if the tenants have been there over 10 years it seems unlikely they are going to suddenly leave.


And if they did decide to leave eg to purchase, or to move for new job, well, after 10 years why not be flexible and allow them to do so easily rather than demanding they see out x more months first?

Brilley

..in our case it was the tenant that asked for a 12 month contract, (each yer after the first 6 months), I would be more than happy for them to go onto a rolling contract.

diggingdude

Landlord.......I'm being charged £50 that's not fair

Tenant.......I'm being charged £50 every year. Landlord.....I don't care.

What comes around goes around....