Continued payment of lettings fees to estate agent
Letting Agents

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6 Posts
3 years ago
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Hi,
In October 2017, I let my property out to a couple with small children. An estate agent found the tenants for me on a let only and rent collection basis for a fee of 8% of the annual rent. I also signed a 5% renewal fee with them.
At the time of signing I was under the impression that the 8% would be for year 1 and 5% for year 2.
In the 3 years since they have been in the property. the tenants and their children have continued to cause damage to the property to the point I have had to send them a formal email to stop doing this or I would evict them
It is for this reason I have not renewed the tenancy with them and at the end of the tenancy in year 1. They are now I believe on what is known as a periodic tenancy
At the end of year 2 I approached the letting agent and made them aware that I did not wish to continue paying them 5 % for in effect doing nothing apart from collecting the rent and paying it into my bank account 7 days later! I was advised that I had signed up to their terms of business and cancellation fees would apply if I was to give them notice now (cancellation fees are more than a years letting fees so it didn’t make financial sense to do this). I would like to make a complaint with regards to the ongoing renewal fees for a let only service at 56 Brookdene Road.
As I wasn’t made aware of this ‘indefinite fees’ at the time of signing the contract with the estate agent I put in a formal complaint with them that I was misled and not properly informed about renewal fees being indefinite at the time of signing the agreement. It was allegedly seen by one of their directors but nothing came of it.

I was sent their terms of business in 2018 which stated ‘ You are under no obligation to continue using your letting service if a renewal or a periodic renewal occurs after 24 months from the expiry of an initial tenancy’. As this was going to apply in another 10-11 months, I didn’t take the complaint any further and just thought it best that I wait it out

In October 2020, I sent the estate agent a note saying the above now applied and that I did not wish to continue with their services. The reply I got back was ‘Our terms of business changed in 2019 and was emailed out to you. Our service is a continuation until the tenant moves out. Please find attached the terms of business. Clause 5.3.23 outlines the cancellation charge. As per my previous email, I will be able to approach our directors in the New Year to see if there is any movement on the renewal fee but unfortunately I cannot do anything until then.’

I have checked and sure enough in 2019 I was sent their revised terms of business and the above clause (You are under no obligation to continue using your letting service if a renewal or a periodic renewal occurs after 24 months from the expiry of an initial tenancy) was removed.

At no point was I made aware in 2019 that the clause was removed and neither did I sign up to the revised terms of business so just because they have revised their terms of business and emailed me the pdf, would this really apply to me

Just wondering if you can advise of where I legally stand and what I should do next please. I do not want to indefinitely pay them for doing pretty much nothing
Also, if I was to give them a month’s rental as the cancellation fee, do you know if this would be tax deductible?

Many thanks

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