NLA: scrap tenancy renewal fees

Landlords managing rental properties themselves should not have to pay tenancy renewal fees to Letting Agents, it has been claimed.

The National Landlords Association (NLA), representing the interests of almost 14,000 landlords, claimed that it was unfair to expect landlords in London to pay steep annual renewal fees once the lease on property runs out.

Landlords in London and the south-east who manage the properties they lease are currently obliged to pay commission fees, sometimes totalling more than ten per cent of the annual rent, just to renew the lease – a cost that could also penalise tenants if passed onto them.

John Socha, vice Chairman of the NLA, 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 ten or 11 per cent 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."

He added that for landlords – as for tenants – striking up a good relationship with reputable Letting Agents was paramount, stipulating that it was always critical to familiarise oneself with the small print of a contract at the beginning of the tenancy.

Published 10th January, 2008

© 2008 Estates IT Limited