NLA: Scrap tenancy renewal fees

Thursday, 10, Jan 2008 09:18

The National Landlords Association (NLA) has called for the scrapping of what it regards as "unfair" tenancy renewal fees.

The organisation, which represents almost 14,000 landlords in the UK, is calling for tenancy renewal fees made by letting agents to be abolished where the landlord has managed the property themselves throughout the agreement.

At present, if a landlord has been personally managing a property and wishes to renew the tenancy agreement for another 12 months, they can expect to pay ten or 11 per cent of the annual rent as a renewal commission to the letting agent.

In such heated and pricey markets such as in London and the south-east this can cost thousands of pounds, a fee the NLA regard as "totally unwarranted".

"This regional anomaly has gone on far too long. It is totally unacceptable where a letting agent is purely renewing the contract for the next 12 months for the same tenants, that the landlord should pay a ten or 11 per cent commission," said NLA vice chairman, John Socha.

"All landlords expect to pay a commission at the beginning of a tenancy, but with rents in London and the south-east topping the tables, another fee of this size is simply unfair."

Landlords need to be on their toes in order to avoid the worst excesses of agents, according to the NLA.

"A good relationship with a reputable letting agent can be very useful even for the experienced landlord," continued Mr Socha.

"But it's absolutely critical to check the small print at the beginning of the tenancy. If [the renewal fees are] too high try and negotiate or find another letting agent.

"There is no good reason for a significant renewal fee that doesn't reflect the work undertaken by the letting agents in London and the surrounding towns and cities."