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  • FIRST POST
    • becca wecca
    • By becca wecca 10th Jul 17, 6:03 PM
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    becca wecca
    Letting Agent Renewal Fees
    • #1
    • 10th Jul 17, 6:03 PM
    Letting Agent Renewal Fees 10th Jul 17 at 6:03 PM
    Afternoon,

    The property we rent tenancy agreement ends this month. It was agreed with the letting agent and landlord that we could move to periodic rental agreement (not signing up for a 6 or 12 month contract)

    Today we received an invoice for £180 for fees to be put on periodic renting. It says as per our tenancy agreement etc. having checked the agreement that we have signed it does state this. But £180 seems very expensive for very little work by the agent!

    Can the fee be challenged even though we signed agreeing to the letting agents fees?
Page 1
    • Guest101
    • By Guest101 10th Jul 17, 6:12 PM
    • 14,477 Posts
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    Guest101
    • #2
    • 10th Jul 17, 6:12 PM
    • #2
    • 10th Jul 17, 6:12 PM
    Yes, quite simply. The letting agents are not a party to your tenancy agreement. So they cannot enforce a clause contained in it.
    • G_M
    • By G_M 10th Jul 17, 7:00 PM
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    G_M
    • #3
    • 10th Jul 17, 7:00 PM
    • #3
    • 10th Jul 17, 7:00 PM
    Ignore. Do not pay & do not answer.

    If this ever went to court (or a deposit scheme arbitration service if deducted from your deposit) it would never be enforced.

    Relax.

    Plus read:

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?
    • mrginge
    • By mrginge 10th Jul 17, 7:03 PM
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    mrginge
    • #4
    • 10th Jul 17, 7:03 PM
    • #4
    • 10th Jul 17, 7:03 PM
    The agent can act to enforce a tenancy clause since, funnily enough, they are an agent of the landlord.

    So it is the landlord, via his agent, who has charged the OP £180.
    • dionysia
    • By dionysia 10th Jul 17, 7:06 PM
    • 63 Posts
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    dionysia
    • #5
    • 10th Jul 17, 7:06 PM
    • #5
    • 10th Jul 17, 7:06 PM
    You don't get 'put on' periodic renting - a statutory periodic tenancy arises automatically at the end of the fixed term if you're still occupying. It's not even very little work, it's none whatsoever. Ignore it and if they chase ask them why they're trying to charge you for the existence of a legal fact.
    June 2017: owe £16,818.
    • mrginge
    • By mrginge 10th Jul 17, 7:12 PM
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    mrginge
    • #6
    • 10th Jul 17, 7:12 PM
    • #6
    • 10th Jul 17, 7:12 PM
    It's lovely that we're all assuming that this is an SPT, but perhaps the actual content of the contract should be provided before leaping to such a conclusion.
    • becca wecca
    • By becca wecca 10th Jul 17, 10:24 PM
    • 457 Posts
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    becca wecca
    • #7
    • 10th Jul 17, 10:24 PM
    • #7
    • 10th Jul 17, 10:24 PM
    The tenancy is moving over to the statutory periodic tenancy. We aren't signing up for another fixed term agreement. Our original agreement will remain in place but we are being charged for it. In our original agreement it listed fees and the £180 fee was noted there.

    Funny thing though my husband didn't want a fixed term agreement to avoid the fees as they are so expensive. But to sign up for a 12 month agreement which would incur paperwork and time only costs £95! (We should have paid more attention looking at the fees when we originally signed the agreement)

    We have emailed to query what the £180 is actually for.
    • G_M
    • By G_M 10th Jul 17, 10:58 PM
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    G_M
    • #8
    • 10th Jul 17, 10:58 PM
    • #8
    • 10th Jul 17, 10:58 PM
    So it's either

    1) a Stautory Periodic Tenancy, which arises automatically by law and so no charge can be levied, or

    2) a Contractual Periodic Tenancy, which arises automatically by virtue of the terms of the original contract, and so no charge can be levied
    • mrginge
    • By mrginge 10th Jul 17, 11:18 PM
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    mrginge
    • #9
    • 10th Jul 17, 11:18 PM
    • #9
    • 10th Jul 17, 11:18 PM
    So it's either

    1) a Stautory Periodic Tenancy, which arises automatically by law and so no charge can be levied, or

    2) a Contractual Periodic Tenancy, which arises automatically by virtue of the terms of the original contract, and so no charge can be levied
    Originally posted by G_M
    Why can no charge be levied under a CPT?
    • G_M
    • By G_M 10th Jul 17, 11:19 PM
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    G_M
    What is the landlord providing in return for this charge?
    • mrginge
    • By mrginge 10th Jul 17, 11:23 PM
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    mrginge
    What is the landlord providing in return for this charge?
    Originally posted by G_M
    If it's listed as part of the contract then they are providing the tenant with a property to live in.
    • cjdavies
    • By cjdavies 11th Jul 17, 7:00 AM
    • 2,392 Posts
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    cjdavies
    If it's listed as part of the contract then they are providing the tenant with a property to live in.
    Originally posted by mrginge
    I thought that was rent.
    • mrginge
    • By mrginge 11th Jul 17, 8:09 AM
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    mrginge
    I thought that was rent.
    Originally posted by cjdavies
    Overall there is one property and one total amount of money being exchanged. Does calling most of it 'rent' and a little bit 'other charges' make any difference ?

    If the TA was worded to set up a CPT, under which the first month included an extra £180 rent instead, would that be ok?

    If the AST has ended and an SPT has arisen then clearly there should be no obligation to pay a fee. But this is just a question in relation to a contractual period tenancy, since it's always pointed out on here that the terms and conditions are defined by the contract (usually around notice period).

    G_M's link specifically states that no fee would be payable under a CPT. I would like to understand why not if it was declared on the TA and given that the T has already agreed to those terms.
    • saajan_12
    • By saajan_12 11th Jul 17, 9:17 AM
    • 562 Posts
    • 363 Thanks
    saajan_12
    2) a Contractual Periodic Tenancy, which arises automatically by virtue of the terms of the original contract, and so no charge can be levied
    Originally posted by G_M
    The CPT arises by virtue of the original contract, but the fee can also be a term of the original contract, just like you have late fees, rent, check out fees, etc. Both sides agreed to this and there was consideration for the whole contract (rent/fees in return for property). Each clause doesn't individually need something in return.
    • Guest101
    • By Guest101 11th Jul 17, 9:51 AM
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    Guest101
    The agent can act to enforce a tenancy clause since, funnily enough, they are an agent of the landlord.

    So it is the landlord, via his agent, who has charged the OP £180.
    Originally posted by mrginge


    A letting agent CANNOT enforce a clause. A LL could, but wouldn't.
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