27th January 2009
Buy-to-let investors in London and the south-east of England have been advised to avoid letting agents that charge unfair, "money for nothing" renewal fees, which are often hidden in small print.

Such agents can charge as much as 11 per cent for renewing properties on a let only basis and investors should shop for those without this fee, says the National Landlords Association (NLA).

A poll conducted by the organisation shows that more than 70 per cent of landlords consider this renewal fee to be unfair and "not a true reflection of the work actually undertaken".

"If letting agents don't stop charging these 'money for nothing' fees, landlords should avoid using their services. It is as simple as that," states John Socha, vice chairman of the NLA.

"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?"

Rent protection insurance was recently recommended by Let Insurance Services, which said it was vital in the current economic climate.



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