Do LA normally charge a fee to renew AST?

chops05

I have just received a form to renew my tenancy agreement from my letting agent and enclosed was an invoice for £80 for admin cost in relation to drawing up a new tenancy agreement. I have only lived at this property for a year and previous agents that I have rented through have never charged me to renew so I am a bit shocked that I have received this invoice. I can't understand how it can cost this much for them to send me one peice of paper to sign so if anyone can enlighten me as to what renewing an agreement entails I would be grateful.

To be honest I really don't have this amount of money to pay in one go so I don't know how to go about compaling about this charge as I am a single mum (but I do work) and money is really tight. I just about have enough money to pay the rent lol!!

poppysarah

Is there anything in your previous contract about renewal charges?

JoeA81

A large number of Letting Agencies do charge extortionate fees for renewal of an AST, and to be honest it is a complete ripoff, but there is little you can do about it if you want to keep living in that property.

However, if you are happy to allow your contract to become periodic, then you can try and avoid the renewal fee by saying that you do not want a new contract, you simply want your current contract to become 'periodic'. This means that the terms of your original contract continue indefinitely, however you do have to accept the fact that you could be given 2 months notice to move out at any time. A fixed term contract gives you peace of mind that you will have at least that term in the property, but as you have seen most LAs charge for renewing a contract.

robpitt

Like others said it's an absolute rip-off that is becoming more common, however I've been successful in avoiding (4 times out of 5) by arguing the landlord should pay if he wants the paperwork and that I simple wanted the tenancy to continue/rollover as a statutory periodic tenancy.

So I would encourage you to contact the landlord (directly if you can) and ask for the tenancy to continue/rollover on current terms. Note this is not an option if they've already served notice.

prudryden

Make an inquiry direct to the LL - he may not even know that the LA is charging for the renewal. I actually had to ask my tenants if they were being charged. If they had said yes, then I would have gone to the agents and told them to cancel the fees as they get enough from me.

chops05

Thank you for all your replies.

I have looked through my contract and there is no mention of a charge to renew. I am going to see if I can go for a periodic tenancy and see what happens. I have not received notice to quit and I did sign a form to say I wished to remain at the property for the next 12 months - this was not a renewal agreement just a form to see whether I wanted to continue living at the property.

At previous proerties I have lived at I initially signed a 12 month contract and then I think it must have rolled over to a periodic tenancy as I didn't have to sign anything else in the 4 or so years I lived there.

I suppose it is just another way for LA to make money as if they don't get enough for managing each property

poppysarah

It is just a way for them to get money. Seems completely wrong to me. No petitions on number10 yet about it?

*jobags*

There is no need to renew an AST (see JoeA81) the landlord cannot take possession action for 6 months from the initial AST and then has to serve 2 months notice if he wishes to end it - as do you.

I have managed AST's (via Housing Association) which have run for 3 or 4 years with no renewal

See the CAB or contact Shelter for more advice - shelter have a telephone helpline - sounds like an unnecessary administrative money making scam :mad: :mad:

Jo XXXXXXX

clutton_2

if a new tenancy agreement is produced, the agent needs paying for that work ... how much and by whom is the 64000$ question

tbs624

clutton wrote: »

if a new tenancy agreement is produced, the agent needs paying for that work ... how much and by whom is the 64000$ question

Find file on computer, insert names, hit print, get parties to sign. LA is presumably already taking c10% off LL.

Chops05 - you should simply say that you are not willing to pay that charge - as Pru says, many LLs are unaware of what the LA does. If you have been a reliable tenant they will not want to lose you - one week's tenancy void would quickly wipe out their renewal fee profit plus some. Contact the LL direct and say you're happy with a periodic but if the LL would like the added security of having you sign for a further FT would s/he agree no renewal charge.