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Ongoing payments to letting agents

asandwhen
Posts: 1,407 Forumite
We helped my Father-in-law move into a rented flat 5 months ago - He is disabled and on disability benefits so I am a joint tennent although I dont live with him.
We have recieved a letter from the letting agents today asking us what out intentions are regarding tennency. It stated that if we want to sign for another 12 months we have to pay an admin fee of £80, if we want to sign for 6 months the admin fee would be £60 and if we just wanted to run on month by month basis it would be £40 (one off payment).
Is this normal? I have called them up asking what it is for and they have said that its to run the reference checks again (apparently they are paying half) in order for the landlords insurance.
I am a little miffed at subsidising the letting agents perk for there landlords!
We have recieved a letter from the letting agents today asking us what out intentions are regarding tennency. It stated that if we want to sign for another 12 months we have to pay an admin fee of £80, if we want to sign for 6 months the admin fee would be £60 and if we just wanted to run on month by month basis it would be £40 (one off payment).
Is this normal? I have called them up asking what it is for and they have said that its to run the reference checks again (apparently they are paying half) in order for the landlords insurance.
I am a little miffed at subsidising the letting agents perk for there landlords!
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Comments
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Why are you signed up to a tenancy for a house you don't live in, surely this will negatively affect your father's entitlement to Housing Benefit? Assured Shorthold Tenancies automatically go onto a rolling monthly contract, the letting agent can make reasonable extra charges for extra work such as drawing up a new tenancy agreement. Check all the paperwork given to you at the start to see what extra charges are listed (and check you haven't already been served with notice), if you want you might ask in writing what the justification of the £40 one-off is. To be honest I'd just ignore the entire thing as I don't see that the landlord's insurance is anything to do with you!!Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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Why are you signed up to a tenancy for a house you don't live in, surely this will negatively affect your father's entitlement to Housing Benefit? Assured Shorthold Tenancies automatically go onto a rolling monthly contract, the letting agent can make reasonable extra charges for extra work such as drawing up a new tenancy agreement. Check all the paperwork given to you at the start to see what extra charges are listed (and check you haven't already been served with notice), if you want you might ask in writing what the justification of the £40 one-off is. To be honest I'd just ignore the entire thing as I don't see that the landlord's insurance is anything to do with you!!
I am on the tenancy agreement because he is on benefits and wouldn't pass the reference checks. It doesn't affect his entitlement to housing benefit. The council benefit office just needed a letter from the letting agents explaining the situation and proof that I lived else where.
I agree with you that the landlords insurance is nothing to do with me and will be making this point to them also.0 -
Why couldn't you simply be a guarantor? If you want to remain on the rolling contract I wouldn't waste my breath/ paper making any points to the letting agents. The letting agent can't charge for doing no work, and that is exactly what is required of a periodic tenancy.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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I asked this question about being a guarantor and was told the same thing about it being for insurance perposes but was told it wouldn't make a difference. Which to be fair it hasn't.
Thanks for the advice - I will just leave it and see what happens.0 -
Under the law an AST becomes a statutory periodic tenancy if it is not terminated at the end of the fixed term. This contains all the same provisions as your original contract, but you must give 1 month's notice to leave, the landlord must give you 2, to coincide with a rental period.
If you are happy with this, then *no* work needs to be done at all.
If you want a new fixed term, then you might have to pay an admin fee, and a modest one is not unreasonable. If the landlord wants the security of the fixed term and you don't care, then you should request they pay the agent's fee as it is for their benefit. It's totally a matter for commercial negotiation, there are no rules on who should pay and how much besides those the participants decide upon.
The agents are at best mistaken, at worst lying, about references and insurance.
Bear in mind that the LL might not be aware of this, as Agent's are incentivised to concoct spurious admin fees rather than give correct advice. If you think that the agents might be misrepresenting you or misadvising the LL, then do contact the LL directly to express your concerns.
I don't know why you are a co-tenant rather than a guarantor, which would be a more normal arrangement.0 -
princeofpounds wrote: ».... I don't know why you are a co-tenant rather than a guarantor, which would be a more normal arrangement.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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