Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Friday, September 09, 2016

Are tenancy renewal fees fair?

One thing that irks me more than anything as a landlord and also as a consumer is being charged something for nothing.

Do landlords need a new tenancy agreement every 6 months?

This analogy is most appropriate for landlords that let through a letting agent who having signed up the tenant on a 6 month tenancy then proceeds to get the tenant to sign a new tenancy agreement every 6 months and charges both the tenant and landlord for this pleasure.  WHY!  Well there are obviously times that a new contract makes sense.  If for instance the landlord wants to increase the rent every 6 months or there are changes in the occupation (for instance the tenancy becomes a joint tenancy) but for most parts a long standing tenancy just continues as a statutory periodic tenancy with rent being due from month to month.  Any minor changes such as an decrease or increase in rent can be accommodated as long as both the tenant and landlord agree by just altering the existing tenancy (get your tenant to sign the amended copy).

Are tenancy renewal fees fair or legal?

Well the answer to the 2nd part of the question is that they are legal if the agency agreement stipulates it.  So if you don't want to pay every 6 months make sure before signing up with the letting agent that they are aware of this and are happy to proceed on this basis.  Otherwise go elsewhere. 

Should a letting agent have a duty of care?

 Are tenancy renewal fees fair?  At the heart of this question is whether you believe a letting agent should be acting in the best interest of the client aka the landlord or whether they work on the basis of maximising their own profits exploiting their landlords as they would with any other customer.  Many naive first time landlords assume wrongly that they clearly act in the first way having a duty of care toward them.  Clearly renewal fees are warranted if a legitimate service is being provided with a well informed and educated letting agent acting in the best interest of their landlords.  In far too many situations this is not the case.

For more information on tenancy renewal fees

Landlord insurance - expert brokers - professional rates

No comments: