NLA calls for unfair letting agency fees to be abolished

The National Landlords Association (NLA), which represents almost 14,000 landlords, is calling on unfair tenancy renewal fees by letting agents to be abolished where the landlord has managed the property themselves throughout the agreement.

Currently, if a landlord in London and the South East who has been managing a property simply wants to renew the tenancy agreement for another 12 months, they can expect to pay 10% or 11% of the annual rent as a renewal commission to the letting agent. For many properties in the region, this could be a figure running into thousands and is totally unwarranted.

John Socha, Vice Chairman, NLA, commenting on this unfair practice, said: “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 10 or 11% commission. 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.

“A good relationship with a reputable letting agent can be very useful even for the experienced landlord. But it’s absolutely critical to check the small print at the beginning of the tenancy. If it’s 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.”