Rent Renewal Fee Claims - Foxtons Vs OFT Case - http://www.rentmanagement.co.uk
Rent Renewal Fees What Now?
http://www.rentmanagement.co.uk/articles/762/1/Rent-Renewal-Fees-What-Now/Page1.html
By Landlord Lawyer
Published on 23/03/2011
 
A issue with landlords are rent renewal fees or commissions. 

Rent renewal fees or commisions appears to be a south of England issue due to the very high rental yeilds.
Landlords are told about the commission they have to pay when the letting agent finds a tenant typically in the region of 10% of the yearly income.  The landlord then pays this fee and when the year comes to an end, the letting agent informs the landlord that as the tenant has signed up for another year, the landlord has to pay a further 10% again and again and again etc until such time as the tenant leave the premises.

A issue with landlords are rent renewal fees or commissions.
A issue with landlords are rent renewal fees or commissions. 

Rent renewal fees or commissions appears to be a south of England issue due to the very high rental yields.
Landlords are told about the commission they have to pay when the letting agent finds a tenant typically in the region of 10% of the yearly income.  The landlord then pays this fee and when the year comes to an end, the letting agent informs the landlord that as the tenant has signed up for another year, the landlord has to pay a further 10% again and again and again etc until such time as the tenant leave the premises.

What Can Landlords Do With Rent Renewal Fees & Commissions?
Following the Office of Fair Trading case against a well known London Letting Agent, Foxtons (OFT v Foxtons) these type of rent renewal fees have not been looked upon by the high court too favorably.  The Unfair Terms in Consumer Regulations relied upon by the court meant that such terms may construed by the court as unfair and unenforceable.

This means that landlord faced with year after year rent renewal claims and demands may not only defend a claim against the landlord but claim back the renewal commissions paid over the years to the letting agent.

So what all landlords should do now is contact R James Hutcheon Solicitors to consider if a claim can be made for the return of all rent renewal payments and commissions.

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