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[Tenant] £120 p.a. tenancy renewal fees !!

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teebow
teebow Posts: 5 Forumite
edited 17 December 2010 at 7:25PM in House buying, renting & selling
Hi,

I'm the tenant of a flat I've been renting for nearly 2 years now.
The letting agency I'm using, in addition to providing quite a bad service, used to charge me every year a £50 fee standing for "single person renewal fee" :(

Two choices : to renew for a full year or 6 months.
I can't rent for a sorter or longer period, I need to stick with their predefined choices!

I've always found it is like extortion but always paid and renewed so far.

Although, they've just sent me next year's contract and there's been a few changes!

Now, those are not £50 but £120 they're asking me to pay in order to renew my tenancy for either 6 months or a year!
They are kindly offering a 50% discount if I complete the renewal and pay the fees up to 6 weeks prior to the renewal date (which is end of March for me).

Are those charges legal?
What can I do against it?

It can't be that much for sending me out a printed contract every year!
I love my flat and don't want to move out :(

Can someone please advise?

T
«1

Comments

  • It depends on what your landlord wants: they might prefer the comfort of having a tenant and their rent guaranteed for a defined period. If you do nothing, on the very date after your current agreement expires you will automatically go onto what is termed a "periodic tenancy". Why don't you contact the landlord and ask them if they would be happy for you to remain a periodic tenant?

    It seems that letting agents make up their own rules where these renewal fees are concerned as it's an additional revenue stream for them for minimal effort.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The letting agent is just making money.
    However, if you want the security of a new fixed term (6 or 12 or whatever months) during which the landlord cannot ask you to leave, you'll have to pay their fee.

    However if you are happy to have a periodic tenancy (month by month), then you do not need to sign anything. A periodic tenancy happens automatically if you
    a) don't sign a fixed term AND
    b) stay one day beyond your existing fixed term AND
    c) continue paying rent.

    The terms/rent are exactly as before except that you can leave any time after giving one month notice (landlord has to give you two).

    No need to do anything, but it is polite to discuss /agree this with your LL. Better if possible to discuss with the LL, as the agent will WANT you to sign...... so they can get their fee! LL may well not care. In fact they are probobly charging HIM a fee too, so he may be very happy for you to go periodic!
  • Thanks for your advices, G_M and BitterAndTwisted!

    I think the letting agency thought about it; they've enclosed a "section 21" notice to the renewal letter.
    It says
    "Enclosed you will find your section 21 notice which confirms the end of your current Tenancy Agreement. (This notice is a legal requirement and is to be served to a Tenant at least 2 months before the Tenancy end date and is just to reinforce the fact that the Tenancy is due to end".

    The noticed itselfs says:
    HOUSING ACT 1988 - Section 21 (1)(b)

    Landlord name + address (which is actually the letting agent address, not sure I am able to contact him directly).
    My name + address


    I give you notice that I require possession of the dwelling house known as : [flat address]

    This notice expires on: [contract end date] following which the Landlord may apply to the Court for a possession order.

    Does that actually mean they're forcing me to sign for another fixed term (+paying their outrageous high fees) without not leaving me the choice to get in a periodic term?

    Once again, your help and support is really appreciated!
  • N79
    N79 Posts: 2,615 Forumite
    teebow wrote: »
    Thanks for your advices, G_M and BitterAndTwisted!

    I think the letting agency thought about it; they've enclosed a "section 21" notice to the renewal letter.
    It says


    The noticed itselfs says:


    Does that actually mean they're forcing me to sign for another fixed term (+paying their outrageous high fees) without not leaving me the choice to get in a periodic term?

    Once again, your help and support is really appreciated!

    The notice means that if you stay they could apply to a court immediately at the end of the tenancy to get you evicted (actual eviction will take a few months). Whether they would actually do so is another matter - why would your LL evict a paying T over this issue? Only if they are (badly) advised to do so by a money grabbing agent who are chasing fees.

    If you want to stay without paying the fees / signing a new tenancy then your next step is to talk directly with the LL to find out if this is their will or just that of the agents. To do this you will need to get your LL's address. To get this you must write to the agents and ask them to provide your LL's address. They have 21 days to comply otherwise they commit a criminal offence.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Tell them to F right off.
    But politely.

    Say no.

    Let them evict you. The cost of moving can't be more than £100 for hiring a man and a van,
  • angrypirate
    angrypirate Posts: 1,151 Forumite
    Try contacting the LA and say that you want a 2 year contract with a 6 month break claus. Has the added bonus of fixing your rent for 2 years and yet gives you the flexibility to move out quickly
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    poppysarah wrote: »
    The cost of moving can't be more than £100 for hiring a man and a van,
    And £200 credit check fees at the new agency.
    And overlap days/weeks when you're paying rent on both.
    And having to find the new deposit before the old one's returned.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    N79 is right - talk to your landlord. HE is the one who decides, the agent has to do what he says. It's only when a 'hands-off' LL doesn't give the agent specific instructions that the agent can do what they want.

    If you are a good tenant and always pay rent, why would the LL want to lose you? He then has a gap with no rent. He has to pay the agent more fees to find a new tenant. He has all the cleaning/clearing up after you move out. He has the stress/hastle/uncertainty searching for replacement. AND he has the risk of ending up with a tenant who turns out to be the tenant from hell.

    Your contract should have the landlord's address on. If not, as N79 says, make a written request to the agent and they HAVE to give you the LL's address.
  • They have to cover the expense of processing your renewal, etc. Lettings agents are busy people and £120 is very cheap for a few hours of their time. They have to do the paperwork, make good this and that, and generally it's gonna cost you mate. We're talking money... BIG money.
  • N79 wrote: »
    To do this you will need to get your LL's address. To get this you must write to the agents and ask them to provide your LL's address. They have 21 days to comply otherwise they commit a criminal offence.
    G_M wrote: »
    Your contract should have the landlord's address on. If not, as N79 says, make a written request to the agent and they HAVE to give you the LL's address.

    The contract has the landlord's name with the letting agent's address on it.

    Although, the receptionist just gave me his address over the phone after I insisted a little bit :j

    Next step, I send him a registered mail!
    Mr_Thrifty wrote: »
    They have to cover the expense of processing your renewal, etc. Lettings agents are busy people and £120 is very cheap for a few hours of their time. They have to do the paperwork, make good this and that, and generally it's gonna cost you mate. We're talking money... BIG money.

    Well, this is why I've paid £100 fees when I moved in.

    Now, I can understand they have admin fees and I wouldn't mind paying a little bit, but come on! £120 for a stamp and a few sheets of paper?
    They can just leave the contract as it is so it goes on a periodic tenancy and avoid all the contract sending/processing hassle.
    As said above, this is just a way for them to make big money! Imagine 1000's of tenants paying £120 at least once a year! I'll do all what it takes to avoid it.
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