Is it normal for Estate Agents to charge a fee for lease renewal?

[vigras rojara]

In other words, they're greedy.

Perhaps, although we'd have to look at their margins to ascertain that.

But either way, it's not because they're regulated.

 

[lexity]

Which I never disagreed with but it's neither here nor there.

For the hopeless, the bigger picture is useless, yes. That's true.

This is why we secede.

 

[lexity]

Perhaps, although we'd have to look at their margins to ascertain that.

But either way, it's not because they're regulated.

Spoken like a true central-planning apologist.

 

[vigras rojara]

For the hopeless, the bigger picture is useless, yes. That's true.

This is why we secede.

Except you don't.

 

[vigras rojara]

Spoken like a true central-planning apologist.

Crikey, you've actually got more deranged. I didn't think that was possible. Well done.

 

[lexity]

Marxist blah blah blah.

Glad to see you haven't been overdosing on the sanity pills.

[...]

Crikey, you've actually got more deranged.

Out comes the ad hom. I must be over the target.

 

[Bliksis]

For the hopeless, the bigger picture is useless, yes. That's true.

This is why we secede.

Who is seceding, and when?

 

[lexity]

Except you don't.

Oh boy, here we go.

It doesn't like that you aspire to something.

 

[lexity]

Who is seceding, and when?

Do you mean who's unhappy living in an involuntary political union?

And when are you going to say no more, thanks, we're out?

These are great questions.

 

[vigras rojara]

Oh boy, here we go.

It doesn't like that you aspire to something.

Yup, you didn't say "that is why we want to secede", you said it as if it was actively happening.

By the way, is secession any closer to happening?

If only you were as good at seceding as you are at turning every thread you get involved in into yet another secession ramble.

 

[supersunbird]

No. That's where you are wrong.

Can an estate agent enter the industry without State permission/approval?

Estate agents are not required (nor state regulated) to be part of the renting process. It's the landlords who use them.

 

[lexity]

Yup, you didn't say "that is why we want to secede", you said it as if it was actively happening.

Well, you short-termers don't recognize any event in history unless you yourselves lived through it.

The number of countries in the world has roughly tripled since 1945.

By the way, is secession any closer to happening?

Is BEE any closer to applying to all businesses?

 

[vigras rojara]

Well, you short-termers don't recognize any event in history unless you yourselves lived through it.

The number of countries in the world has roughly tripled since 1945.

Is BEE any closer to applying to all businesses?

Right, no excuses for you then. Get on with it.

 

[vigras rojara]

Well, you short-termers don't recognize any event in history unless you yourselves lived through it.

The number of countries in the world has roughly tripled since 1945.

Is BEE any closer to applying to all businesses?

I'll take that as a no then.

 

[Bliksis]

Do you mean who's unhappy living in an involuntary political union?

And when are you going to say no more, thanks, we're out?

These are great questions.

Blah blah all this nonsense meanwhile people have been and will be getting ripped off by scummy businesses with or without regulation.

 

[lexity]

Estate agents are not required (nor state regulated) to be part of the renting process. It's the landlords who use them.

Landlords set conditions based on the extent of competition in their market.

So, it does translate. But I haven't been a landlord for a while so I personally can't say what level of State involvement there is.

Put it this way.... can I hire an airbnb/equivalent tonight, where the State is not involved at all in regulating the industry? So the landlord is free to risk being a bad landlord and is completely at the mercy of the review system and the number of free-to-enter the space competitors?

Is there absolutely nothing that involves the State that a ripped off tenant can do about being ripped off?

I'll take that as a no then.

And I'm guessing you didn't watch the Sakelige video.

 

[Quixotic]

Did you agree to a renewal admin fee when you signed original lease? If you did, then you can’t get upset when you now get charged. If you didn’t, then definitely query it and at least negotiate it down. Perhaps to just the new credit check fees and reduced admin.

Always discuss these clauses at initial lease stage, when you have more negotiating power. At renewal stage, the estate agency would actually prefer you to vacate, as their commission for a new finders or management fee outweighs a renewal fee collected from the landlord, and an admin fee that they will get anyway from a new tenant. It’s a business after all. Nobody works for free. Yes, we call them snakes etc, but any business is out to make as much as possible from a consumer.

And no, the landlord should not have to pay the tenants admin fees. You, as the tenant, are entering into a new agreement, utilizing the services of the estate agency. The landlord has signed a mandate agreeing on their own fees (which are also considerable) and that is not of your concern.

If you do not wish to pay for a service, then unfortunately you need to try rent privately, and even then, a prospective landlord could charge at least for credit check reports initially and perhaps at renewal stage as well.

I looked up the lease and it does mention a renewal fee. There is no mention of a new (or annual) credit check. As always in these situations you want the lease agreed asap and assume that the T&Cs are standard and fair.

Good point about their Business model preferring new tenants but their additional income is offset by having to re-advertise and expend effort in finding and showing people around. I see many Agent employees already overloaded - poor response to messages. Also, if a tenant is good, better to try and keep him. The admin in manageing a delinquent tenant must be significant and probably not entirely recoverable. Also, it's not ideal for the Landlord - assuming they care about the landlord.

 

[Quixotic]

the bill shouldn't be passed onto you then... that agents fee is for the landlord, it's a fee the estate agency charges for drawing up a contract.

Do this... change the lease to 6 months or even shorter if you like. (yes they'll still charge you that fee but because you signed the initial lease you are now bound) now cross that clause out of the contract, so when the lease expires in 6 months or less that clause is null and void. Then get your landlord to draw up another new lease that is for as an example 1 year, you can both sit down and add in or take out what you like, no agent ever involved again.

Otherwise you will have this same issue the next time.

Adjusting the lease is always met with resistance. It's their standard and anything else is not worth their while to manage. Take or leave it attitude

 

[Bliksis]

Adjusting the lease is always met with resistance. It's their standard and anything else is not worth their while to manage. Take or leave it attitude

Indeed. Hey, we're increasing your rent by R2k a month.

"No please! No job increase!"

Ok, well do R1k.

"Deal!"

 

[lexity]

I looked up the lease and it does mention a renewal fee. There is no mention of a new (or annual) credit check. As always in these situations you want the lease agreed asap and assume that the T&Cs are standard and fair.

Good point about their Business model preferring new tenants but their additional income is offset by having to re-advertise and expend effort in finding and showing people around. I see many Agent employees already overloaded - poor response to messages. Also, if a tenant is good, better to try and keep him. The admin in manageing a delinquent tenant must be significant and probably not entirely recoverable. Also, it's not ideal for the Landlord - assuming they care about the landlord.

Agents run off their feet is a signal the price is not high enough to attract new competitors.

If the problem persists it should signal a market that is not to open competition.

In a free market, prices serve that purpose. They increase in order to solve the lack-of-supply problem, and reduce again once the supply roughly matches demand.

With Marxists in positions of leadership, prices are not permitted to perform this function.