Insurance News Archive

London landlords warned about letting agent renewal fees

Landlords in London and the south-east are being advised to shop around for letting agents to avoid costly renewal fees.

The National Landlords Association (NLA) reports that proprietors in the area are being charged around 11 per cent for renewing properties on a let-only basis, whereas most letting agents in the rest of the UK do not charge landlords to continue their agreements.

According to research by the organisation, more than 70 per cent of proprietors think the rate is unfair and does not reflect the work undertaken by the agents.

"Landlords get no added value from letting agents on 'let-only' deals once a tenant has been secured. Why should they have to pick up the tab just to keep the same tenants?" questioned John Socha, vice chairman of the NLA.

He advised proprietors to check the small print and negotiate clauses which they are concerned about before they sign contracts.

Chris Town, a director of the Residential Landlords Association, said recently that 2009 will be tough for some landlords.

26 Jan 2009