Agent Renewing fees?

Hi, Please can you share with us the wording in the contract you signed.

Reply to the comment left by Neil Patterson at 10/03/2021 - 10:50
Initial commission % incl. VAT of the annual rent ( % + VAT)
Commission to be paid upfront at the beginning of each tenancy term
Renewal commission % incl. VAT of the annual rent ( % + VAT)
This means that if an example marketing rent of £1,000 pm is achieved, you
would pay:
£ incl. VAT* initial commission and £ incl. VAT* renewal commission
This fee is for:
• Property marketing as per the marketing cycle already discussed
including all portal and newspaper advertising
• Accompanied viewings
• Rent collection & accounting
• Regular arrears checks
• Chasing rent arrears
• Regular accounts statements
• Negotiating the tenancy renewal
• Negotiation of offers by skilled professionals to achieve the highest possible rent

For the only managed property we've had ( for two years before self managing), I got agreement at commencement from the agent touting for our business, against two other agents, that no renewal fee would be payable. Even if they say its industry practice to charge it, tell them these are your terms if they'd like to secure income, or a competitor will get it.
There is no rationale to justify photocopying the same document by altering the date only, but then charging a massive fee for so-called "professional management services".

Why renew the Tenancy? Just say you'll allow it to roll over to Statutory periodic.

It sounds like yours are managed by the agent so you need to negotiate with them or change agents. I have the same issue each year but I manage my own as they are local and with different agents to the local area.
The last one wanted a high renewal fee, the tenant wants to stay longterm so I let it go to a periodic, the agent gets no additional fees. I said this to another agent and they dropped there high renewal fee and this particular tenant felt more comfortable with a new one year AST, there third and again want to stay long-term. Agents want to recoup the massive drop in income as they can no longer charge the tenant.

Reply to the comment left by DGM at 10/03/2021 - 11:56
It's not managed. Originally it was just to find a tenant and manage the paperwork. All I get from them is the annual money grab and a monthly rent collection. I don't need either any more so I'm going to let it lapse to periodic tenancy. The tenant is also happy as they wanted to charge him for a cut and paste agreement.
What happens to the deposit with TDS once we go periodic?

We gave up using our Ipswich high street Letting Agents in 2008 because of high (and hidden) fees and opened our own letting business, we charge commission on rent received (full management) and tenant renewal is £99.00. everything else is a BOLT on..

I rent two properties and use a local estate agent to provide me with a tenant on a finders fee only basis for less than one months rent they supply references, take and hold the deposit and provide me with the signed rental agreement.
I supply them with proof of the boiler certificate, and this year the EIPC certificate.
This works really well for us both.

Hi Jeevsie

If the payment is what you signed up to then the agent can make the charge. There is no industry standard. In my former firms we have never charged automatically for tenancy renewals; in my current firm we charge a modest fee for dealing with documentation and just double checking the compliance stuff.

Reply to the comment left by Sanjeev Markanday at 10/03/2021 - 12:14
With TDS the money is still held against the tenant until they decide to move out and apply for it. This should be separate from the agent, unless they hold it in TDS insurance scheme where they hold the money rather than TDS Custodial where the money is paid into TDS to hold, but shouldn't matter either way.
If you are concerned, check with TDS and let them know it is going onto a Periodical.