Reference fee

fair_deal_3

Good people
Apologies if this has been addressed elsewhere. I did a scan but could not find the answer.
I initially paid 6 months rental in advance and therefore there was no need for the LA to conduct a reference check. I now received a call from LA saying that if I did not pay the remaining 6 months rental in advance they will be required to do a reference check and bill me 70 quid. They now have 6 months track record so why would I have to pay for this half way through my agreement simply because I prefer to continue paying on a monthly basis?

Wee_Willy_Harris

How long is the t/agreement for?
Is there a break clause?
Is there a condition in the tenancy agreement re references?

DVardysShadow

Actually, they don't have 6 months track record of anything except you paying 6 months upfront.

But what are the terms of your agreement? Is it a 1 year AST? Is there a break clause?

chewmylegoff

fair_deal wrote: »

Good people
Apologies if this has been addressed elsewhere. I did a scan but could not find the answer.
I initially paid 6 months rental in advance and therefore there was no need for the LA to conduct a reference check. I now received a call from LA saying that if I did not pay the remaining 6 months rental in advance they will be required to do a reference check and bill me 70 quid. They now have 6 months track record so why would I have to pay for this half way through my agreement simply because I prefer to continue paying on a monthly basis?

assuming this is a 12 month tenancy:

what does your contract say about payment of rent?

what does your contract say about payment of additional fees?

if you contract says that you pay the first six months in advance, and then pay monthly, then they haven't a leg to stand on.

unless there is some specific reference to this in the contract (or maybe if the contract obliges to you pay rent in advance for the 2nd six months of the contract) then just write to them and politely inform them that you have no such obligation under the contract.

fair_deal_3

The contract states that : "the sum of xxxxxx to be paid on signing hereof in respect of 12th January 2010 to 11 July 2010 and thereafter the sum of xxx to be paid on the 12th day of each calendar month throughout the remaining term". I have abbreviated the clause so that numbers are not written out in alphabetical form...for sake of brevity.
Reference is made to Part II of schedule 2 of housing act 1988 in the event of unpaid rental for 14 days
Also reference to 2 months notice ito section 21 but not before 6 months from commencement of tenancy

I hope I have answered all the questions

DVardysShadow

fair_deal wrote: »

The contract states that : "the sum of xxxxxx to be paid on signing hereof in respect of 12th January 2010 to 11 July 2010 and thereafter the sum of xxx to be paid on the 12th day of each calendar month throughout the remaining term". I have abbreviated the clause so that numbers are not written out in alphabetical form...for sake of brevity.
Reference is made to Part II of schedule 2 of housing act 1988 in the event of unpaid rental for 14 days
Also reference to 2 months notice ito section 21 but not before 6 months from commencement of tenancy

I hope I have answered all the questions

So the tenancy is for a year? No Landlord's break clauses?

I think the Agent is just trying to claim a referencing fee.

chewmylegoff

fair_deal wrote: »

The contract states that : "the sum of xxxxxx to be paid on signing hereof in respect of 12th January 2010 to 11 July 2010 and thereafter the sum of xxx to be paid on the 12th day of each calendar month throughout the remaining term". I have abbreviated the clause so that numbers are not written out in alphabetical form...for sake of brevity.
Reference is made to Part II of schedule 2 of housing act 1988 in the event of unpaid rental for 14 days
Also reference to 2 months notice ito section 21 but not before 6 months from commencement of tenancy

I hope I have answered all the questions

in that case i don't think they can charge you the fee. you have no contract with the LA or obligation to pay them money.

i'd write to them quoting the relevant clause in the contract and stating that you will be complying with the terms of the contract, and that you are under no obligation to pay them any fees.

do note that there is a break clause so the LL could choose to serve a s21 notice on you for any reason. it is pretty unlikely though that the LL will s21 you simply for paying rent in accordance with the contract rather than complying with the LA's demand. looks like the LA is just trying to pull a fast one in my view.

fair_deal_3

Wee_Willy_Harris wrote: »

How long is the t/agreement for?
Is there a break clause?
Is there a condition in the tenancy agreement re references?

No mention of reference fee in contract
There is mention of 2 months notice but not before 6 months from commencement of tenancy period

fair_deal_3

chewmylegoff wrote: »

in that case i don't think they can charge you the fee. you have no contract with the LA or obligation to pay them money.

i'd write to them quoting the relevant clause in the contract and stating that you will be complying with the terms of the contract, and that you are under no obligation to pay them any fees.

do note that there is a break clause so the LL could choose to serve a s21 notice on you for any reason. it is pretty unlikely though that the LL will s21 you simply for paying rent in accordance with the contract rather than complying with the LA's demand. looks like the LA is just trying to pull a fast one in my view.

Thanks for the comments. Yes I also believe it is a way to try and make some quick bucks. One other question I have is that the LA has indicated that payment must be made via debit order if I choose the monthly option. I don't have a major issue about this but just don't like to be dictated to by this bunch especially if they make statements that are not entirely correct. What can they do if I decide to make cheque payments on time every month?

chewmylegoff

fair_deal wrote: »

Thanks for the comments. Yes I also believe it is a way to try and make some quick bucks. One other question I have is that the LA has indicated that payment must be made via debit order if I choose the monthly option. I don't have a major issue about this but just don't like to be dictated to by this bunch especially if they make statements that are not entirely correct. What can they do if I decide to make cheque payments on time every month?

well probably not much because even if they have written in the contract that you need to pay by standing order, if you breach the contract by paying by another method they haven't actually suffered any financial loss.

the LA may try to charge you an admin fee each month for their time spent banking the cheque / extra bank fees incurred by them.

additionally you would have to give them the cheque in enough time for them to cash it and the funds clear into their account, which means that you will need to pay your rent earlier than if you're paying by standing order (think that's right - 5 working days for a cheque to clear, but only 3 for standing order?). plus the bother of actually giving or posting the cheque to them.

to be honest it is probably more trouble than it is worth - easier for you to set up a standing order and not have arguments with them.

fair_deal_3

chewmylegoff wrote: »

well probably not much because even if they have written in the contract that you need to pay by standing order, if you breach the contract by paying by another method they haven't actually suffered any financial loss.

the LA may try to charge you an admin fee each month for their time spent banking the cheque / extra bank fees incurred by them.

additionally you would have to give them the cheque in enough time for them to cash it and the funds clear into their account, which means that you will need to pay your rent earlier than if you're paying by standing order (think that's right - 5 working days for a cheque to clear, but only 3 for standing order?). plus the bother of actually giving or posting the cheque to them.

to be honest it is probably more trouble than it is worth - easier for you to set up a standing order and not have arguments with them.

You're right. I guess I'm being a little obnoxious because of my experiences with them
Many thanks