Letting Agency Renewal Fee

Timewarp

Hi

We're about to renew our tenancy as we really like the flat and would like to ensure that we're living there for at least another year before possibly buying our own place.

However, the letting agency want to charge us £50 + VAT for the renewal "admin fee", which is esentially just checking with the landlord that renewal is ok and printing out the same contract again with different dates.

The question is, do we have to pay the fee. We appear to have been sent the new agreement for us to sign that is already pre-signed by the letting agency. Do we legally owe them the renewal fee if we just sign both copies and send one back? The only leg they have to stand on would be if there was a clause in the AST that says it is invalid unless the renewal fee was paid, but surely that would have to say that the fee was part of the reservable rent?

Alternatively, has anyone here managed to successfully argue that the AST agreement is a mutual one and that neither party should have to pay for the other party to agree to it, as equal time is required by both parties to review the terms?

I am thinking we could use inconvenience caused by a couple of recent issues as good reason for them to waive the fee as goodwill.

Anyway, thanks for your help in advance.

princeofpounds

You do not need to renew the tenancy unless you MUST have 6 months of security of tenure, as opposed to 2. You automatically go into a statutory periodic tenancy where the landlord must give you at least 2 months notice to vacate. It is the same as your old contract in every other way. This is just the way housing law works. Google or search the forums for the SPT and find a wealth of information.

I recommend that you speak direct to your landlord, inform them that you are willing to pay but you do not want to waste money on a non-existent service from the EA who are basically trying to earn money from old rope. If the landlord agrees, forget the EA and the new contract, or he can ask the EA to waive the fee, or pay it for you.

Estate_Agent

Find out whether the Lettings Agency are re-credit checking you at the LL's request. peoples situations change and he may have requested this. The £50+ would cover the cost of the check and associated time spent doing it. Hope you get it sorted.

Timewarp

princeofpounds wrote: »

You do not need to renew the tenancy unless you MUST have 6 months of security of tenure, as opposed to 2. You automatically go into a statutory periodic tenancy where the landlord must give you at least 2 months notice to vacate. It is the same as your old contract in every other way. This is just the way housing law works. Google or search the forums for the SPT and find a wealth of information.

I recommend that you speak direct to your landlord, inform them that you are willing to pay but you do not want to waste money on a non-existent service from the EA who are basically trying to earn money from old rope. If the landlord agrees, forget the EA and the new contract, or he can ask the EA to waive the fee, or pay it for you.

Ta. Well we would love to stay for another 12 months, but yes we are aware that the 2 months notice SPT will apply if we don't sign.

Timewarp

Estate_Agent wrote: »

Find out whether the Lettings Agency are re-credit checking you at the LL's request. peoples situations change and he may have requested this. The £50+ would cover the cost of the check and associated time spent doing it. Hope you get it sorted.

Thanks. Will check with the LA.

FATBALLZ

As with solicitors, highly skilled and qualified lettings agents should expect to be able to charge high rates for their time.

N79

I would always advise LL's to rereference Ts before granting new fixed periods. GBP50 for rereferencing a couple and preparing a new agreement and organising the signing is fairly reasonable.

Of course, if you don't want to pay for the new agreement (and hence security of tenure for the length of the fixed period) just let your current tenancy go periodic although you will then have to accept that your may give you 2 months notice to leave at some point in the next year.

clutton_2

why is preparing two agreements and getting them signed seen as work which should be done for free ?????

everyone should get paid for what they do.. even LAs

princeofpounds

why is preparing two agreements and getting them signed seen as work which should be done for free ?????

everyone should get paid for what they do.. even LAs

I agree, my objection is that it is no work that needs doing at all if both parties just want to continue their contract.

clutton_2

tenants with an AST in place have security of tenure for 6/12/24 months...

Statutory periodic tenants can be given notice at any time......

THATs what you are paying for ... peace of mind