Letting agents rant

Bluebell1000

We have had a rather long email from the agency we use to manage our rented house. Towards the bottom they stated they they will be putting up the management fees and to cover it they will increase the tenants rent by 5% ASAP.  I am absolutely fuming that they think it's fine to do this without asking any kind of permission, and a rent increase mid pandemic is really not helpful - we don't want our tenants to think about moving out, or to add extra financial pressure on them! I am looking for the agency contract now to see what it says, but just felt like a rant on here too.

davidmcn

So what are they planning to do when the tenants decline the request to pay a higher rent?

Grumpy_chap

Why do they think their fees should increase?
Swap LA if I were you.
In the meantime, instruct the current LA that you do not authorise them to notify the tenant of a rate increase.

Bluebell1000

Grumpy-chap yes. Our current  neighbour is an estate agent so will have a socially distanced chat tomorrow. The agents won't pick up messages until Monday so we will email after speaking to him. And also tell our tenants to refuse rent increases if they have already sent something! They are a terrible agency but we ended up with them when they bought out our nice local agents, and we have a fee to leave with tenants in place (£250 +vat), I found the contract.

bhjm

can they just increase their fee`? Wouldn`t it be a breach of cotnract from their (LA) side ?

tacpot12

You can instruct them not to increase the rent, and take their fees out of the current rent. It will leave you with less rent, but  you will save the hassle of moving agents. The contract you signed with them will allow them to increase their fees without justification, and I expect they do have some justification for doing so. 

anselld

How much are they actually increasing their fee?  Eg current fee 10% of rent increasing to 15% of rent?  That would actually be a 50% increase.  Or something else?

it does sound like they need sacking.  Surely an exit fee should be waived in the face of a mid-contract price rise in the same way as phone companies are obliged to do.

Bluebell1000

Anselld fee increase is from 10%+vat to 12% + vat. So that's 2.4%, or a 20% increase to us. 
Our contract actually doesn't say they can increase their fees. 
We spotted our EPC expires in just over a week when going through the paperwork.... that's the kind of thing we pay them to tell us about...*

*Not that it's urgent esp. in tier 4, since we don't intend to serve any notices or to relet - but I still think they should have alerted us. 

AdrianC

You know you can change agent without changing tenant, right?

And AIUI you don't need a constantly current EPC during a tenancy unless and until s21 o'clock.

SpiderLegs

Bluebell1000 said:

Anselld fee increase is from 10%+vat to 12% + vat. So that's 2.4%, or a 20% increase to us. 
Our contract actually doesn't say they can increase their fees. 
We spotted our EPC expires in just over a week when going through the paperwork.... that's the kind of thing we pay them to tell us about...*

*Not that it's urgent esp. in tier 4, since we don't intend to serve any notices or to relet - but I still think they should have alerted us. 

£300 to terminate them sounds like a no brainer to me 

moneysavinghero

They are sailing very close to asking the tenant to pay a prohibited payment. If you don't want your tenant to pay more tell the LA to keep the rent as it is and you will pay the extra management fees yourself.