PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Ongoing payments to letting agents

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!

Comments

  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 10 November 2009 at 1:33PM
    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.⭐️⭐️⭐️ ⭐️⭐️
  • asandwhen
    asandwhen Posts: 1,407 Forumite
    Fire_Fox wrote: »
    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.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.⭐️⭐️⭐️ ⭐️⭐️
  • asandwhen
    asandwhen Posts: 1,407 Forumite
    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.
  • 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.
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    .... I don't know why you are a co-tenant rather than a guarantor, which would be a more normal arrangement.
    Looking at recent threads here, I think that being non-resident co-tenant may actually be preferable to being guarantor. It give the [EMAIL="fcc.rdesouza@archipelago.entadsl.comco"][/EMAIL]enant the explicit ability to give notice on the tenancy - whereas a guarantor at best would only have an implied right.
    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 ForumTeam
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.7K Work, Benefits & Business
  • 616.9K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 253.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.