11% COMMISSION
Submitted by visitor on Tue, 13/01/2009 - 21:36.
I have a flat that I've been renting out to tenants through Foxtons for the past year. To be fair they found me very good tenants, although as ever, I had to grit my teeth when agreeing to the 11% commission. Now I'm in a situation where the one year tenancy is up and I have tenants who would like to stay at the flat, but who want to negotiate a new rental price / rental agreement with me and not Foxtons. I would love to be able to do this because it sems outrageous that Foxtons can claim another 11% of income despite signing the tenants up for only an initial 12 month period.
I'm more than happy to 'check out' my tenants at the end of the Foxtons contract and to then use my own tenancy agreement with the tenants. However Foxtons are refusing to give back the tenants deposit and are also claiming that I will still need to pay them 11% even if I draw up my own tenancy agreement. Basically, as long as thjose tenants remain in the flat, Foxtons are saying that they will keep hold of the deposit and will still claim their 11%.
There must surely be a way around this somewhat outrageous situation. Has anyone else had a similar problem?
Thanks
D
(3 votes)
RE: 11% COMMISSION
If you've not paid foxtons for a check-in - then they do not need to be involved in the check-out process.
So in your scenario if you've not paid foxtons for a check-in - speak to your tenant and ask them to give their notice to foxtons and likewise give your notice to foxtons 2 months in advance stating you will not be renewing your agreement.
Foxtons will not be involved nor have any right to carry out a check-out and you should be free then to proceed with a new agreement with the current tenants without foxtons needing to be involved.
Just make sure there's no reason for foxtons to visit the property - which would only be if they need to conduct a check out.
They are a nightmare! I say that despite using them for 3 years.
wrong
you are charged a fee for the introduction of the tenant's to the property, so regardless of if you use your contract or theirs or anyone's, if the tenants are still in the property you will owe them a fee. Check their terms of business.
The only way around it is if you tell Foxtons they have moved out, and they do the same, but if they catch on to you or the fact they are still there expect an invoice.
Renewal Commission
Providing you are a 'consumer' landlord (i.e. not a professional one) the new terms and conditions that Foxtons have been ordered to comply with are that they can only ask for 7% renewal commission for two years after the initial term. FOXTONS ARE UNLIKELY TO TELL YOU THIS IF YOU SIGNED THE OLD TERMS AND CONDITIONS but this is the legal position (see Office of Fair Trading vs Foxtons 2009).
However, to make sure that this is watertight, you need to ensure that they are not performing any other service for you (e.g. rent collection) or they could argue that they merit the commission.
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