Renewal Fees - A cautionary Tale

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R
rush1
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I recently instructed a well known Estate Agency to Market my property for letting and negotiated a reduced fee of £400+VAT for a Tenant Find only.

After about one week the Agent contacted me and said that they had found a tenant who wants to sign a tenancy for 2 years.

However when I received the Invoice it was for £650+VAT; thinking this was an error I queried it with the Estate Agent.

The Estate Agent said that the addional £250+VAT was for an 'Extension Fee'.

Not knowing what an extension fee was I asked the Estate Agent some further questions and was given the following reply:

"Fees are due for EVERY year that the tenant is there. If the tenancy was for 12 months and then renewed for a further year you would be liable to pay £250+VAT for the Renewal Fee and £120 + VAT for another contract"
"In this instance the contract is for 2 years and therefore making the fees payable at the start, because we are not collecting the rent for you".

My understanding is that I should be charged only the £400+VAT regardless of how long the tenant signs for.

This is another example of how Estate Agents are sneakingly trying to bring in Renewal Fees.

Fellow Landlords beware.

All comments and advice welcome.
17/05/2013 21:22

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