Letting agents warned about renewal fees

News Category: Legal

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Letting agents have been warned about increasing the renewal fees they charge landlords.

The Office of Fair Trading (OFT) recently ruled against a letting agent, finding its renewal commission terms were "not transparent".

It was also unfair of the letting agent to ask for a percentage of the house price if the landlord sold their property to a tenant, the ruling stated.

Tom Entwistle, director at online community LandlordZONE.co.uk, welcomed the ruling but said he understood that letting agents need to make a living.

He said: "There are costs involved in renewals and you will not get a good service from agents if they are not paid for the services they provide."

The OFT is now planning to write to letting agents warning them to ensure they are complying with the law.

The National Landlords Association recently called for all renewal charges to be scrapped.

Chairman David Salusbury said letting agents must not attempt to mislead their clients and advised landlords to always read the small print of any contracts before they sign them.

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