Tenancy renewal time !! Do i need to pay ??

Edfunk

Hi there,

We are tenants and the end of our first ever rental term is coming to an end (6 months).

We have received a letter from agents asking for £80+vat to renew the contract for another 6 months. Seems a bit steep for printing off a few sheets of a4 - as contract already exists they would just have to change the dates (takes about 30 seconds in Word). Or am i missing something ??

So basically we need to know where we stand or what may happen should we refuse to pay this unnecessary fee to the agents.

All thoughts gratefully recieved :beer:

tek-monkey

Depends, do you want another 6 month term or would you rather go month to month? We had the same, no way I was paying nearly £100 to force me not to move in the next 6 months! So I didn't, and went onto a rolling contract at no cost to me. This also of course gives you less security, but rentals round here are easy to come by.

brownbabygirl

tek monkey thanks. we are about to sign for a flat. should this be covered in the agreement? what are the keywords to look out for?

tek-monkey

I'm not positive, but I've rented a fair few places and its always been a 6 month period followed by a rolling tenancy. This was the only one to try and force us into a second 6 month period, which we just refused to sign. Glad as I'm trying to buy at the min!

DVardysShadow

brownbabygirl wrote: »

what are the keywords to look out for?

Statutory periodic tenancy. Once the AST comes to an end, the law [statute] provides for the tenancy to continue with tenant having to give 1 month notice and the LL 2 months - both to expire on the same date as the date before the start of the tenancy or something.

Pepzofio

I'm just about to pay £46 renewal fee to my LA for a 12 month extension (but I want to be tied in!) Then I found out by chance that the LA puts a break clause into their renewal contracts from month 1 as standard - effectively making you pay to go periodic!!! (Although any notice would be unenforceable for six months, it's still hassle and good luck getting a ref if you stay beyond notice!)

Fortunately the LL was happy to take this out, but if it hadn't come up in conversation, who knows if I'd noticed before I signed? Just goes to show the importance of reading what you sign, but there must be loads of people unwittingly paying to go periodic who aren't clued up on tenancy law...

£80+ VAT is chancing their arm a bit tho - they're relying on you not knowing about periodic tenancies or wanting the hassle of even higher costs involved with moving.

poppysarah

I'd not pay to renew.
But then I'm a stroppy so-and-so who is quite happy to go negotiate a lower rent elsewhere if I have to.

It's an unfair charge imo.

clutton_2

as a LL all my tenants are now on periodic and some have been so for years and years. We have an excellent relationship, and they know i want long term tenants and they want long term homes.

But if you want security - if you want the knowledge that you have a guaranteed 6 months tenancy ahead of you, then sign a new agreement. If you do not sign the LL/LA can give you two months notice at any time.

Edfunk

Thanks for all of you replies !! Most appreciated !!

Statutory Periodic it is then !! Thought something was a bit fishy when agents start calling every other day asking for you to renew and pay fees !!

Actually have LL's coming round in 30 mins to fix a couple of bits and first meet and greet. I shall discuss everything with them then !!

Cheers guys and gals !!