Landlord renewal fees must be scrapped by the courts

In a week where a major High Street letting agent is being challenged in the High Court by the Office of Fair Trading, the National Landlords Association has condemned the practice of charging landlords unfair renewal fees where the landlord has managed the property themselves throughout the tenancy.

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 around 11 per cent of the annual rent as a renewal commission to the letting agent. For many rental properties in the region, this could be thousands of pounds and is totally unwarranted.

John Socha, Vice Chairman, commenting on the renewal fees issue, said: "This is a landmark hearing where, we hope, consumers will get some much needed protection from these unacceptable charges. All landlords expect to pay a commission at the beginning of a tenancy, but with rents in London and the South East still topping the tables, another fee of this size is simply unfair. There is absolutely no reason for a significant renewal fee that doesn't reflect the work undertaken. These charges really are ‘money for nothing.'

"Landlords must check the small print of any contracts with letting agents before signing on the dotted line. Any clauses which cause concern should be negotiated out of the terms and conditions. If this isn't possible, then landlords should vote with their feet and try a different agent."