Foxtons - unfair commissions | Discuss

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Foxtons - unfair commissions
29/11/2011
3:20 pm
LouisVW4
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Has anyone had any recent experience with Foxtons?

The OFT won a High Court ruling against Foxtons' terms which included charging commissions for renewals, etc... yet their terms still include commissions for renewals even if they are not providing a service (they are claiming holding the deposit through DPS is a service!)

They are about to charge me for the 3rd time, and I have no way out of it, even if my tenant moves out and happens to return at some point in the future.

29/11/2011
3:22 pm
LouisVW4
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I meant to ask, am I able to take the deposit held by Foxtons, with my tenants agreement of course, and have it covered by myself through one of the schemes?

29/11/2011
9:18 pm
Louise
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LouisVW4 said:

Has anyone had any recent experience with Foxtons?

The OFT won a High Court ruling against Foxtons' terms which included charging commissions for renewals, etc... yet their terms still include commissions for renewals even if they are not providing a service (they are claiming holding the deposit through DPS is a service!)

They are about to charge me for the 3rd time, and I have no way out of it, even if my tenant moves out and happens to return at some point in the future.

No experience but it may be worth checking if your tenant can get the interest on the deposit added to the deposit - some agents take the interest.

01/12/2011
1:49 am
PaulBarrett
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Don't use ANY other deposit scheme apart from mydeposits.co.uk as this is the ONLY scheme that allows the LL to hold the deposit monies in your bank account;  assisting your cashflow and nobody elses.

The cost is usally £30.00 per AST.

Don't use Foxtons or any other LA if you don't need to.

If you are happy managing things yourself there are numerous very cheap online LA which can be used for just tenant sourcing along with using LRS.

These LA have exactly the same internet exposure as any other LA.

Advise your tenant that they are to leave;  they won't actually go though.

Advertise your property on 1 of the cheap LA sites or on Gumtree which would be free for a certain time.

Put the council tax bill in your name for 1 month for the property

Magically your tenant who has 'vacated' the property sees your advert online and magically you agree to take him on and issue a new AST.

No fees payble to Foxton.

Job done and NEVER use Foxtons again.

01/12/2011
2:01 am
PaulBarrett
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I would also add that yes you need to have the deposit paid back to the tenant as they are vacating the property aren't they.

I month later the tenant comes back on the council tax and electoral roll and you issue a mydeposits DPC within 14 days of the tenant signing the new AST.

I would also give your tenant who obviously hasn't gone anywhere a little 'drink' for his assistance and advise him not to use Foxtons again until he has used another LA or has had another LL after you sourced not via Foxtons.

Essentially you need at least 1 LL separation between you and that tenant if that tenant comes back to you via Foxtons; of which you only would use for tenant source only with no fees payable apart from the tenant source.

07/12/2011
3:51 pm
LouisVW4
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Thanks guys.

I'm still uncertain and Foxtons is very litigious.  Confused

Their terms state:

'The Renewal Commission fee is payable on commencement of the renewal, extension, hold-over or new agreement'

'Renewal Commission will be due in respect of renewals, extensions, hold-overs and new agreements where the original tenant remains in occupation.'

The 1st term suggests commission is payable if a new agreement is given, regardless of when it is given. However, the 2nd term appears to suggest that the tenant must remain in occupation i.e. no break in tenancy for the fee to become payable. Between the 2, it appears to catch everything, but I may be wrong.

Are there any lawyers out there?

My tenant is planning to leave soon, but I do not want to be caught in this trap should he ever return to London and want to occupy my flat and it's vacant. If that happens, in theory, Foxtons would claim to be entitled to payment.

I will never use Foxtons again. However, the OFT ruling does apply to all letting agents, so I will check and challenge the commission terms of all Lettings Agents in future.

PaulBarrett, you say "...or has had another LL after you sourced not via Foxtons." What do you mean by LL?

08/12/2011
10:08 pm
PaulBarrett
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Sorry common abreviation is LL = Landlord my apologies for lazy  key boarding.

13/12/2011
12:12 am
Sam Turner
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Paul that sounds like you are encouraging one of your members to break the law. Im sure you wouldnt like it if one of your tenants didnt pay you what was lawfully yours.

13/12/2011
6:32 am
PaulBarrett
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Nope as a landlord if you don't use the paper methodology you will always ahve to pay fees forever to Foxtons if this paticular tenant ever returns to you.

Clearly ridiculous.

It could be 10 years has elapsed and your former Foxton tenant comes back to you, calling you directly and takes out an AST.

Are you seriously suggesting that you would pay a fee to Foxtons just because 10 years previously your tenant was once sourced by Foxtons!!!

They are a  bad company and clearly no one in his right mind is going to pay such a fee.

So work the paper admin sytem or be imprisoned by a wrongun LA for the rest of your life with that particulat tenant and any others you sourced via Foxtons.

Why anyone uses this LA I can;'t work out.

If you wish to have Foxtons source tenants for you you delete the sections of their T & c's you do not agree with.

If it is not acceptable to them then walk out of the door; they will soon call you back!!

13/12/2011
6:46 pm
tt
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A contract is a contract, you sign in you pay even if 10 years later

13/12/2011
7:36 pm
Vale-Estates
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PaulBarrett said:

Don't use ANY other deposit scheme apart from mydeposits.co.uk as this is the ONLY scheme that allows the LL to hold the deposit monies in your bank account;  assisting your cashflow and nobody elses.

The cost is usally £30.00 per AST.

Don't use Foxtons or any other LA if you don't need to.

If you are happy managing things yourself there are numerous very cheap online LA which can be used for just tenant sourcing along with using LRS.

These LA have exactly the same internet exposure as any other LA.

Advise your tenant that they are to leave;  they won't actually go though.

Advertise your property on 1 of the cheap LA sites or on Gumtree which would be free for a certain time.

Put the council tax bill in your name for 1 month for the property

Magically your tenant who has 'vacated' the property sees your advert online and magically you agree to take him on and issue a new AST.

No fees payble to Foxton.

Job done and NEVER use Foxtons again.

 

 

Don't forget every time you signed a new tenancy with the same tenant the MyDeposits fee needs to be paid again (new tenancy, bond needs to be protected again). So unless you leave the tenants on a periodic over time this eats into your cashflow.

This is how it was when I used them last year, it might have change since, but I use the DPS these days.

17/12/2011
5:19 am
PaulBarrett
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No fee would be payable if the tenancy proceeds onto a statutory periodic tenancy.

As for still paying fees to Foxtons 10 years later; it may be a contract but it is manifestly unfair.

If Foxton's LL clients were aware of the stupid and unfair  term in their contract then possibly fair enough.

But if they wern't then somewhat unreasonable and yes I accept every landlord should read the terms and conditions.

How many do?, and yes this could be a timely warning to ALL LL before entering into a business relationship with a LA they should ask for terms of business to take away and read before they conduct ANY business with that LA.

This could mitigate against a LA attaining business with a LL and therefore  a LA might be more upfront about any onerous conditions of business to ensure that they don't lose a possible sale; or to advise that they do not have any onerous conditions.

If Foxtons continue with their dodgy condition why would a LL wish to do business with them?

Beats me!

20/12/2011
1:20 pm
Jayne.B
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I'm guessing I should avoid Foxton's then?? Yell

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