Campaign to stop ‘unfair’ letting agent renewal fees is launched

I've always argued this with an agency - they do nothing after the 1st year (usually saying 'we are not managing the property' so it's ok to do nothing and take 'commission'!)
I take an agent if I'm too busy or it's a tricky property (as in Covid) but always put in 'commission first year only' - professional photos, advertising and viewings, checks, contracts and deposit protection is fine (I negotiate the commission too - they take it). I have one pet agency who knows that they can have all my business for 5% for one year, rather than none of my business for 10% for 3 years. It's not just commission it's also 20% VAT!

I agree, Years ago I used letting agents for a couple of my properties through IMS Derby (now part of Leaders - don't know if Leaders still charge renewal fees). In the end I gave the tenant notice through the lettings agency - this broke the contract. The tenant didn't move out and I set up a contract direct with the tenant (who has now left and the property sold). My remaining 6 properties do not use letting agents.

Reply to the comment left by GlanACC at 25/10/2023 - 08:38
An agent that charges an ongoing letting fee will normally word the contract in such a way that the fee remains payable whilst the tenant remains in the property.

Consequently, some tenants are being served S21 'no fault' eviction notices for no other reason than this can be the only way to end the agreement between agent and landlord.

Maybe Hello Neighbour and Shelter should form an alliance to press for the banning of these fees?

I don’t understand why landlords are still paying renewal fees.
OFT v Foxtons the High Court ruled that if the Letting agent didn’t make it known from the outset other than a clause hidden in their standard terms & conditions then they cannot enforce a renewal fee.
When I first instruct an agent I make it known that I will not be paying one.
I hold the deposit, Collect the rent and manage the properties so they have absolutely no on going’s involvement.
I know to landlords who don’t do this and pay the agent every year. WHY?

Not all agents charge ANY RENEWAL FEES - I don't , I include one FREE renewal of contract per year within my reasonable management fee of 7.5% per month (no vat) or 8.5% for houses - Landlords should haggle with their agent a reasonable fee for a new contract is no more than £75 per tenant including vat.
Essex Property Management & Lettings Ltd

Reply to the comment left by David Smith at 25/10/2023 - 09:38
As you say David, Foxtons hid their fees, which is why they were ruled against.

Reply to the comment left by Neil Turrell at 25/10/2023 - 09:40
I agree Neil that not all agents charge fees. However, there are some geographical areas where most/all the high street agents do.

Reply to the comment left by Ian Cognito at 25/10/2023 - 09:47
I think you'll find that most do (London) unless you negotiate them out.
Having had a quick read of OFT V Foxtons, isn't it time that the law was changed as with Agents not being able to charge the tenant fees (not passed on to the landlord) and not charge ongoing fees to Landlords after the original work has been done??? A campaign coming up .....

I am a small accidental landlord due to inheritance of property. I make it quite clear to agents that their contracts need amending to remove any renewal fees. I have used big and small chains all accept one have been quite happy to alter the fees to a one of finders fee no renewal costs. The one who wouldn't did not get my business.

Reply to the comment left by Peter Edmonds at 25/10/2023 - 09:51
Hi Peter. Would you share details of location and agents? PM me if preferred.