Very high remarketing fees

Keeper98

Hi everyone,

I am aware that it is legal for lettings agents to ask for remarketing fees when ending a tenancy earlier than originally agreed on. 

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

Thanks in advance

Thrugelmir

20% of the £450 will be VAT.  That leaves £360 net to cover the LA's overhead costs and generate a profit. Time is very expensive. 

MaryNB

Keeper98 said:

Hi everyone,

I am aware that it is legal for lettings agents to ask for remarketing fees when ending a tenancy earlier than originally agreed on. 

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

Thanks in advance

Yes. Without a break clause you can only end the tenancy during the fixed term with agreement from your landlord. Notice periods only apply at a break clause, end of tenancy (not always required at this point) or during a periodic tenancy.

Those remarketing fees are high but since you are wanting to end it early and can only do that with their agreement your hands are kind of tied. They can just refuse to let you leave the agreement early and then you are liable for rent and bills right until the end of the full fixed term.  

AdrianC

Yes, it's definitely reasonable.

Looking back, the last tenant-finding fees I paid were £420 inc vat in 2018, for a £550/mo rent flat. That fee covered all the costs in finding, vetting, referencing a replacement tenant - which, of course, the landlord would not have to do if you were not looking to leave during the fixed period of your tenancy.

You signed a fixed-period tenancy until a certain date in the future. You are legally liable for rent until then, unless the landlord chooses to agree to let you leave early. You can no more given notice than the landlord can give you notice during that fixed period. Once the tenancy becomes a rolling periodic, you - and they - can.

The landlord is offering to let you do that in return for you covering the costs directly incurred by your decision. That is eminently reasonable, and - frankly - the least you can expect.

coffeehound

Keeper98 said:

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

It sounds like you aren't going to be charged further rent after your move-out date -- that is a big saving for you as some LLs / LAs will continue to charge rent until a new tenant takes over.  An extra month or more of rent would probably exceed that settlement figure?

AdrianC said:

 That fee covered all the costs in finding, vetting, referencing a replacement tenant - which, of course, the landlord would not have to do if you were not looking to leave during the fixed period of your tenancy.

I think now the prospective tenant is charged for most of the vetting costs, though perhaps the LAs charge both tenant and LL for the same thing . .

MaryNB

coffeehound said:

Keeper98 said:

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

It sounds like you aren't going to be charged further rent after your move-out date -- that is a big saving for you as some LLs / LAs will continue to charge rent until a new tenant takes over.  An extra month or more of rent would probably exceed that settlement figure?

AdrianC said:

 That fee covered all the costs in finding, vetting, referencing a replacement tenant - which, of course, the landlord would not have to do if you were not looking to leave during the fixed period of your tenancy.

I think now the prospective tenant is charged for most of the vetting costs, though perhaps the LAs charge both tenant and LL for the same thing . .

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

coffeehound

MaryNB said:

coffeehound said:

Keeper98 said:

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

It sounds like you aren't going to be charged further rent after your move-out date -- that is a big saving for you as some LLs / LAs will continue to charge rent until a new tenant takes over.  An extra month or more of rent would probably exceed that settlement figure?

AdrianC said:

 That fee covered all the costs in finding, vetting, referencing a replacement tenant - which, of course, the landlord would not have to do if you were not looking to leave during the fixed period of your tenancy.

I think now the prospective tenant is charged for most of the vetting costs, though perhaps the LAs charge both tenant and LL for the same thing . .

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

Recently I paid £92 as a referencing fee; perhaps if one fails the test they keep the money, but if you pass, it is deducted from the first rent charge?

MaryNB

coffeehound said:

MaryNB said:

coffeehound said:

Keeper98 said:

Still, I am shocked by the amount requested by my lettings agent: is £450 in any way reasonable? This is not mentioned in the tenancy agreement at all.

Also, the lettings agents strongly suggested that they don't HAVE to allow me to move out before the originally agreed on tenancy period ends (despite giving one month notice). Is this true? 

It sounds like you aren't going to be charged further rent after your move-out date -- that is a big saving for you as some LLs / LAs will continue to charge rent until a new tenant takes over.  An extra month or more of rent would probably exceed that settlement figure?

AdrianC said:

 That fee covered all the costs in finding, vetting, referencing a replacement tenant - which, of course, the landlord would not have to do if you were not looking to leave during the fixed period of your tenancy.

I think now the prospective tenant is charged for most of the vetting costs, though perhaps the LAs charge both tenant and LL for the same thing . .

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

Recently I paid £92 as a referencing fee; perhaps if one fails the test they keep the money, but if you pass, it is deducted from the first rent charge?

They cannot charge you referencing fees. They can charge you a holding deposit which is refundable but it cannot be more than the equivalent of one weeks' rent. I don't know the Welsh and Scottish rules around holding deposits but in England they cannot keep the holding deposit if you fail referencing (as long as you provide accurate information). They can keep if you failed a Right to Rent check, pulled out between paying the deposit and the start of the tenancy, or you failed to take all reasonable steps to enter into a tenancy whilst the landlord or agent did.

NortheastEA

MaryNB said:

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

This is not correct ! a landlord can charge for:

interest on unpaid rent 
lost keys or other security devices
variation of the contract at the tenants request
change of sharer at the tenants request 
early termination at the tenants request - specifically the cost of reletting the property as well as any rent until the start date of the replacement tenancy

This is a termination at the tenants request therefore a request for payment is allowed.

MaryNB

NortheastEA said:

MaryNB said:

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

This is not correct ! a landlord can charge for:

interest on unpaid rent 
lost keys or other security devices
variation of the contract at the tenants request
change of sharer at the tenants request 
early termination at the tenants request - specifically the cost of reletting the property as well as any rent until the start date of the replacement tenancy

This is a termination at the tenants request therefore a request for payment is allowed.

Those fees apply to tenants after the tenancy starts, not prospective tenants. There are no upfront fees allowed. 

NortheastEA

MaryNB said:

NortheastEA said:

MaryNB said:

They can't charge the prospective tenant any fees in England, Wales and Scotland (not sure about NI). They can only ask for rent, security deposit and and a holding deposit.

This is not correct ! a landlord can charge for:

interest on unpaid rent 
lost keys or other security devices
variation of the contract at the tenants request
change of sharer at the tenants request 
early termination at the tenants request - specifically the cost of reletting the property as well as any rent until the start date of the replacement tenancy

This is a termination at the tenants request therefore a request for payment is allowed.

Those fees apply to tenants after the tenancy starts, not prospective tenants. There are no upfront fees allowed. 

The OP is an existing tenant