Rent contract renewal - 6 month contract, £50 renewal fee and references ?

sky_rat

I have been renting a property for nearly 6 months now and the landlord wants to renew the contract.

This is the 4th property I have rented, all of which have been with different landlords/letting agents in different areas. From my previous experience, after the initial 6 month period the contract simply changed to a rolling 1 month contract.

However, the landlord for this property wants to:

- tie me into another 6 month contract
- charge me a £50 admin fee
- perform a reference check again

I have never heard of this before and feel they are taking the pee.

I have told them how the properties I previously rented went onto a 1 month rolling contract after the initial 6 months and I presumed this was the norm. I also highlighted how there was no admin fees or reference checks after the initial 6 months either.

So I asked the landlord for a monthly contract instead of a 6 month contract and I even offered to do the admin paperwork myself !

But their response was as if it was normal to renew with a 6 month contract, admin fee and reference check.

The references arent a problem but it does seem unecessary. However, I would prefer not to be tied into a 6 month contract again, not that I have any intentions of moving in the near future. And the admin fee just seems another way of making money out of me.

Can anyone offer any advice, as it feels like I am being taken for a mug.

On a different note, why is it everytime I try to contact landlords they are abroad ? My current landlord says they are 'working away' again at the end of the week. Sounds to me like another holiday which these landlords always seem to be on. Its nice to know how I help all these landlords to live a life of luxury

ManicMum

that doesn't sound right. after 6 months, shd just go to rolling contract as you say.

as for you helping them to have holidays. well that may or may not be the case. That's just the way of the world. You either rent or you buy. those are the options!

G_M

You have a choice:
1) go along with the LL for an easy life. It costs you, and ties you in for 6 months which you may not want. It also gives you security for 6 months which you might want!
2) do nothing. Decline to sign a new contract or pay the fees. You will automatically have a monthly periodic tenancy. The LL hen has the choice of accepting this, or serving you a S21 notice, taking you to court, getting an eviction order, having a voide period with no rent, having to advertise/find a new tenant etc
3) Agree a midway compromise ie new 6 month contract but no fee.

Up to you, NOT up to the LL

Cissi

Some landlords want the security of a renewed 6-month contract (or longer) when the first one expires, others are happy with a periodic tenancy - just like some tenants prefer the security of renewing their AST while others like the flexibility of a rolling contract. LAs generally want to renew the contract as that's how they get their fee, but that doesn't necessarily mean that the LL demands this (especially since they'll also be paying a fee for a new contract).

If you feel strongly enough about it, then just refuse to sign the new contract and you'll automatically go onto a periodic tenancy. Of course you then run the risk of the LL giving you 2 months' notice to quit - but this usually isn't very likely if you're a good tenant who pays rent on time.

As for the LL always being on holiday, how do you know they aren't working when they're abroad? Not that it's actually any of your business - they're running a business and providing a service which you're presumably happy to use or else you'd find alternative accomodation. They've employed a LA to look after the daily management of their property/properties. How they choose to live their lives and spend whatever money they're making has got nothing to do with you!

sky_rat

ManicMum wrote:

You either rent or you buy. those are the options!

Unfortunately, thats where you are wrong. There is no way I could afford to buy. The interest rates are sky high (for first time buyers) and so is the minimum deposit (10% or more). So this leaves me (and others) no choice but to waste money on rent.

Cissi wrote:

As for the LL always being on holiday, how do you know they aren't working when they're abroad? Not that it's actually any of your business - they're running a business and providing a service which you're presumably happy to use or else you'd find alternative accomodation. They've employed a LA to look after the daily management of their property/properties. How they choose to live their lives and spend whatever money they're making has got nothing to do with you!

You are correct, it is none of my business, but it just makes me sick how the rich steal from the poor in this country. The rich get richer and the poor get poorer. Everyone is out to rip each other off. As I said, I am not happy to spend most my income on rent, but I have no other choice. And it has got everything to do with me if I am being ripped off !

DVardysShadow

sky_rat wrote: »

... The interest rates are sky high (for first time buyers) and so is the minimum deposit (10% or more). So this leaves me (and others) no choice but to waste money on rent.

I cannot let that pass. If you think current interest rates are sky high, you have not lived. I remember paying 15% for 2 periods.

As for wasting money on rent, if you buy a property, you are renting the money to do it. At the moment when house prices look likely to drop again, what you think you will save on rent vs mortgage you may well end up spending twice over in loss of equity.

sky_rat

DVardysShadow wrote: »

If you think current interest rates are sky high, you have not lived. I remember paying 15% for 2 periods.

Maybe I did not word that correctly. When I say sky high, I mean compared to the base rate of 0.5%.

The interest rate for a first time buyer will be no where near the base rate, nor the average rate. It will in fact, be far higher. Again, this is how b(w)ankers can rip us off and pay themselves huge salaries and bonuses.

tbs624

ManicMum wrote: »

that doesn't sound right. after 6 months, shd just go to rolling contract as you say. ...

The law allows for a stat periodic to arise automatically but a LL can choose to seek repossession if s/he would rather have the tenancy as a further Fixed Term.

westv

tbs624 wrote: »

The law allows for a stat periodic to arise automatically but a LL can choose to seek repossession if s/he would rather have the tenancy as a further Fixed Term.

Has that actually ever happened to anybody - being evicted because they wouldn't agree a new fixed term contract?

princeofpounds

Are you dealing with the LL or with an LA? Often LAs like to play these games as they get fees for pressing 'print' on their computer. But LLs normally pay more attention to having a solid tenant paying the rent.

An admin fee for preparing a new fixed contract is not totally out of the question, but a reference check is definitely not the norm - the fact that you have been a reliable tenant for an entire fixed contract is better than any reference.

As stated, you go onto a periodic tenancy automatically under the law. If the LL cares that much he can try to terminate the tenancy but would be somewhat self-defeating.

kmmr

sky_rat wrote: »

Maybe I did not word that correctly. When I say sky high, I mean compared to the base rate of 0.5%.

How can people still say this with a straight face. Just to be clear - BANKS DO NOT BORROW AT BASE RATE TO FUND MORTGAGES.

And as someone who works many hours every week, including a lot of travel, I can say that I hate how much it takes me away from my homelife. Your assumption that overseas = holiday is very very wrong.