Renting - Tenancy Agreement Renewal Charges

li'l_p · 20 March 2012 at 10:41PM

Just wanted to get a steer on this. We have rented our current property for 7 years, privately through a lettings agent. Every year the agents send us our renewal and we are requested to confirm renewal and the tenancy agreement is sent along with an invoice for £55 plus vat for administration costs, i.e. them to post a copy to landlord and one to us, for them to be returned and swapped and posted out to us.

We have just had our renewal this year and they are now charging £75 plus vat for the privilege. Does anyone have any advice on this in terms of what is acceptable as this seems really excessive. I can understand it going up (slightly) each year but considering they just photocopy the agreement, send us a poorly photocopied version of a standard tenancy agreement, and there are only associated postage costs (no more than a few quid) to send to us and swap & post on the signed copies to us/landlord ...it just seems a tad excessive.

Any advice?

Werdnal · 20 March 2012 at 10:47PM

In law, you you do not ever need to sign a renewal at all! Many tenants and LLs do not know this, so letting agents rake in renewal charges from you AND the LL every year - how else do you think they afford their posh offices and flash cars!

The day after your fixed term ends, if you do not move out, your tenancy automatically becomes a Statutory Periodic Tenancy. All terms and conditions of the original signed agreement still stand, except the notice requirement - you need give 1 month written notice to leave, and LL/LA needs give you 2 months.

If you do not want to pay renewal, just request that the tenancy lapses to an SPT. However, remember that this does not give you security of a fixed term, and in reality, if LL wants you out, he can start eviction proceedings after 2 months. Some LLs also like to tie tenants in for a specified fixed term, but many do not know about SPT arrangements either, so dutifully pay their renewal fees every year, without realising there are other options!

I have let a property for 12 years, had 4 different tenants in that time, and only ever get each one to sign an initial 6 month fixed term at the start. One tenant lived there nearly 5 years on his initial 6 month contract, having never signed a renewal in all that time - perfectly legal, and more importantly, totally FREE!

TBH, if you have been there for 7 years, the LL seems happy with you, so I personally would take the chance of an SPT. If Letting agents argue, ask for the LL's name and address in writing (by law they have to provide it on your formal request), and write to the LL explaining the above, and suggesting you could both save your renewal charges by adopting an SPT instead.

G_M · 20 March 2012 at 10:52PM

Werdnal explains it well.

In essence, signing a new 12 month contract
a) costs you
b) gives you security for 12 months
c) removes your flexibility (you can't leave)

Moving to a SPT:
1) is free
2) gives you flexibility (you can leave at a months notice)
3) reduces your security

Your choice.

li'l_p · 20 March 2012 at 10:57PM

Thanks

We do have fantastic landlords. I often speak to them direct over things as the agents are rubbish. I recently had the loft insulated for free and I had to constantly chase the return of the form from the landlord. The agents hadn't sent it on and sent it the day I chased (a few days before it was due to be instaled). The night before we were due to get the installation I ended up phoning the landlords direct and we sorted out drop off between us. This is one of many things I have had to chase and sort myself - the agents are useless!

Our landlords on the other hand are brilliant, and this is their former family home, so they see us being here for many years and have visited here and expressed their appreciation of us 'looking after' the place.

I will see how we get on. It just takes the pee that they can charge £90 for very little. I do most of the work myself when it comes to issues we have, I should be charging them for calls & time.

Thanks again

li'l_p · 20 March 2012 at 10:59PM

I will also add that our tenancy agreement expired on 3rd March, so again another thing that they didn't pick up on... and we chased to find out what was going on....

G_M · 20 March 2012 at 11:02PM

If your TA expired on 3rd March, you already have a SPT.

No need to do anything!

Werdnal · 20 March 2012 at 11:03PM

li'l_p wrote: »

I will also add that our tenancy agreement expired on 3rd March, so again another thing that they didn't pick up on... and we chased to find out what was going on....

In that case you are already on an SPT - do not chase agents, do not pass go, do not pay renewal fee.

Speak to the LL first, tell them what we have explained here. If you chase the agents they will wake up to the fact that you haven't paid them. Assure the LL that you are wanting to continue for the foreseeable future, and they too should hold off paying any fees to renew.

Just don't pay the agent and let things stay as they are!

G_M · 20 March 2012 at 11:14PM

And if the landlord is dubious or insecure (many LLs assume their agent must know best!) remind them diplomatically that the agent is employed by them so must do as they say.

If the LL instructs the agent to let the tenancy lapse (as it has) into a SPT the agent has no choice.

li'l_p · 21 March 2012 at 10:01PM

Thank you so much for your responses, very useful information. I will be getting onto the landlord just to make things clear to him. They are very good to us, so should be fine. I have spoken to them in the past about not being happy with the way the agents charge us for a poor photocopy of the tenancy agreement.

Thank you.:j

armour · 21 March 2012 at 10:38PM

While you're speaking to the LL, why don't you suggest that he sack the agent (it doesn't seem as if they are doing much anyway) and split their commission 50:50.

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Renting - Tenancy Agreement Renewal Charges

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