Beware the cost of a light bulb!

Many landlords employ letting agents to deal with the management and day to day running of their leasehold properties. The work of such agents ranges from dealing with multiple properties in large blocks of flats to managing an individual property for a single private landlord.

Foxtons Estate Agents based in London have recently found that changing a light bulb could leave them with legal costs of in excess of £40 million.

A landlord employed Foxtons in 2011 to deal with the management of his flats. In 2014 Foxtons sent the landlord a bill for £616 to cover the repair of a light fitting at the property. The landlord clearly took exception to the level of the bill and made his own enquiries. He found that the sub-contractor who had carried out the work had charged only £412.50 for the repair. The remaining £203 was Foxtons' charges. The landlord took legal action against Foxtons and demanded compensation. Their claim was based on the fact that “hidden” charges were not covered in the landlord's contract.

The result of the case is awaited and Foxtons have unsurprisingly expressed their 'disappointment' and have publicly stated that they believe their fees to be clearly laid out in their terms and conditions. Their position is perhaps not helped by the fact that the landlord in question is a Law Lecturer at Kings College, London.

Whatever the result of the case, it is important to ensure that if you are a letting agent and are seeking to impose fees and charges on your landlord clients, that these are properly and fairly set out in your terms and conditions. Conversely, if you are a tenant, it is important to ensure that you read the 'small print' to be satisfied that fees and charges levied by letting agents are indeed recoverable.

In both cases obtaining legal advice could help you avoid making a costly mistake.

To discuss this and any other landlord or tenant issue, contact us.