Join a community, not a client list.
Boutique London Lawyer
Get in touch today
Call us on 07855 849232 or
email david.gordon@dg-law.co.uk
Management Fees – Lease Amendment
Using A Property Manager
Landlords charge tenants for any management fees, if they use a property management agency. The lease agreement will be inadequate if it doesn’t include a management fees clause. The tenant needs to understand costs incurred in the leasing, including management fees. Management fees are charged to the landlord. In turn, the landlord recharges the tenant for expenses incurred.
Management Fees Clause
When a landlord changes property managers or begins to use a property management company, the lease agreement needs to be amended. The lease agreement needs to specify that management fees will be charged to the tenant. According to The Landlord and Tenant Act 1987, management fees must be reasonable. As long as the fees are reasonable and discussed with the tenant, prior to the lease amendment.
Service Charges
Management fees can be inserted in the lease agreement Service Charges section. They can be stipulated as a percentage of the service charge. We recommend that landlords keep tenants up to date with new changes in the lease. Include tenants in discussions with the property lawyer, when amending the lease agreement. It’s important that the tenant is included in all discussions.
Negotiating Fees and Conditions
It’s good business practice to keep the tenant aware of any new charges. Tenants should also be aware of when fees will be charged and when payment will be due. Often, tenants choose to have the management fee fixed as an annual fee. If vat is payable by the landlord, the tenant should be expected to cover this expenditure. Landlords and tenants can discuss with their lawyer, which fees should be covered and when these should be charged.
If you are a landlord who needs to amend the lease agreement for any reasons, including the inclusion of property management charges, please get in touch with us. SG
Make An Enquiry
Call us now on 07855 849232 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.
Share Article With:
Make An Enquiry
Blog Categories
Client Reviews
DG Law were fantastic throughout our purchase process. We had a short, fixed, timeline to
DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome
We were very pleased with the way that DG Law helped us on our transaction
DG Law resolved a difficult lease renewal for us and their services were excellent –
I needed understanding and experienced legal advice. DG Law provided an excellent service at a
My experience was second to none – the service was professional and personal. DG Law
DG Law always step up to the plate on our transactions and handle the various
DG Law was recommended to me and my partner and I received excellent advice –
Having worked with DG Law a number/couple of times now, I have been really impressed
DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting
DG Law came recommended to me and whilst setting up a new business it was
We were recommended three lawyers to handle the sale of our seven year old successful
Why Choose Us?
We live by our core values of transparency, flexibility and being honourable – every day
We put ourselves in your shoes so we understand your problems from the inside out
We deliver our advice in a way that is easy to understand