Renting contract renewal fee

TrickyDicky

We just had a renewal letter from our EA. We ignored it. We have had 2 letters since saying "Please sign the renewal and give us £60.......". Continued to ignore. Then got a phone call. Told them to go away. The letters were trying to be scary with terms like "your tennancy could be affected if you do not sign the renewal" which is complete poo.

Its down to the LL, not the agent, if they want you out.

You are not extending you tenancy agreement, it just continues as per the origional agreement as a periodic. Unless they have issued a S21 notice, theres nothing they can do.

karinski

We had already given notice because the house was going to be sold, and then withdrew it when it was taken off the market. We then asked for the withdrawal to be ignored because of this fee thing.

Does a fixed term contract immediately turn to statutory if not renewed?

G_M

When a fixed term contract expires one of 3 things happens:
1) the tenant just leaves. No notice is required by the tenant (but it IS required by the LL if he wants the tenant to leave at this point)
2) a new tenancy is agreed and signed for a new fixed term. Usually with associated fee!
3) If no agreement is signed and the tenant does NOT leave, then on the next day a 'periodic tenancy' is automatically created and the tenancy continues. All terms (including rent) remain identical except that to end this periodic tenancy the LL must give 2 months notice and the tenant one month (ending on a rent period)

The issue here is that if you sit tight and go periodic, no renewal fee will be payable, but your rent will be as before, since the new reduced rent has never been formalised. (I assume you are still paying the original rent?)

franklee

karinski wrote: »

In fact the code actually in full says

Prior to an applicant’s offer being formally accepted, you must set out in written form any significant pre- conditions
6f
for the letting, including the circumstances in which the applicant may have any potential financial liability for fees,
charges or penalties relevant to:
• The processing of his application to rent the property.
• His withdrawal, at any stage, of his application for the tenancy or the client’s rejection of it.
• The initial setting up of the tenancy including Inventory/Check-in costs.
• Any ongoing or future liability for fees or charges payable to you for the applicant to extend, renew or terminate the proposed tenancy including Inventory Check-out costs.

I'm not sure what I can do with this information, but still!

I'd suggest you write to the agent (not email, not text, plain old fashioned write) stating that there was no mention of the renewal fee in any of their paperwork you were given when you signed up and quoting that bit of the ARLA code to them. State that unless the fee is waived you will be referring the matter to ARLA. I'd also say it's bonkers for the landlord to lose a good tenant like this over such a fee and that they should be acting in the landlord's best interest by retaining good tenants to eliminate loss of rent when the property is empty and the risk of a new tenant who isn't as reliable as you are. I'd also restate that you withdrew your notice due to the lower rent offered to you that you accepted and therefore you have no plans to leave ATM. I'd copy this to the landlord. If they don't cave within a week copy it to ARLA, cc the agent and landlord.

I'd find out the name of the letting manager at the local branch of the agent and address the letter directly to him/her making the letter polite but firm.

karinski

Hello

One more quick question on this. Thank you for all your help so far. They are trying to pressure us into this saying they will put it back on the market if we don't tell them, but if we have to agree, I'm still going to pursue with letting manager / head office afterwards.

However the last question - regarding statutory rolling contract. Our contract says at the start

the landlord will be entitled to recovery of possession of the premises in accordance with the premises ion accordance with the provisions of Section 21 of the Housing Act 1988 (1996) by serving the tenant at least 2 months notice in writing

Does that mean we can move onto a rolling contract? Or is this 'section 21' being served and thus we would have to get a full new fixed term contract?

Cheers!

karinski

G_M wrote: »

The issue here is that if you sit tight and go periodic, no renewal fee will be payable, but your rent will be as before, since the new reduced rent has never been formalised. (I assume you are still paying the original rent?)

The money we'd save on rent would pretty much be wiped out by the renewal fee, so I think I'd rather end up paying the landlord more than the agent.

karinski

To keep you updated the agent has now said that we either pay the fee by Friday or they put the house back on the market.

Totally ignoring the code they've agreed to

anselld

karinski wrote: »

To keep you updated the agent has now said that we either pay the fee by Friday or they put the house back on the market.

Totally ignoring the code they've agreed to

If they do ( I doubt it) you are not obliged to grant access for any viewings etc.

princeofpounds

To keep you updated the agent has now said that we either pay the fee by Friday or they put the house back on the market.

As everyone has told you:

TALK DIRECTLY TO THE LANDLORD.

Only the landlord makes decisions about remarketing, and who gets to be a tenant and who doesn't. Only the landlord can evict you. The agents get to make zero decisions, all they can do is tell the landlord their opinion.

The landlord won't be happy if the tenants he has in place are being chucked out because the letting agents wants an extra cut. Why should he have a void period, pay the letting agent a new finders fee just because they chucked out a perfectly good tenant who they had reached acceptable terms with? Spell out to him exactly how much the LA is prepared to sacrifice his interests, potentially losing him thousands of pounds, to pursue their own. I'd like to see the LA then come to the LL and ask for him to sign an eviction notice.

If the LA is an ARLA member, also report their conduct in writing to ARLA (you might have to officially complain to the head of the LA first). ARLA are pretty toothless, but it's a lot of hassle for the agency.

Also tell the agent in writing that if they attempt to remarket the house permission will be refused for any viewings under your statutory right to quiet enjoyment. You can do this no matter what it says in your contract.

You have no contract with the agent. You have not entered any business arrangement with the agent. You have not even seen terms and conditions of any business arrangement. If you and your landlord are happy to operate under a stautory periodic basis, you don't even need a new contract.

moromir

To play the devil's advocate, what if this agent does have the Landlord's instructions?

And what if those instructions are fixed term tenancy only or evict?

The Landlord does not have to agree to continue on an SPT basis if he doesn't want to and can simply serve notice (an important and oft overlooked point). Whilst it might seem odd to us that the Landlord would risk a void period over the insecurity of a month-to-month rent, it is entirely possible that this is how he chooses to operate.