Avoiding Lettings Agency Renewal Fee

Squattie

Hi

I realise this issue has come up a few times previously as I have done a search and gathered some useful info. However, I would greatly appreciate any input with regards to my specfic situation.

I am currently renting a flat with a 12mth month tenancy agreement which comes to an end at the end of April.

The letting agency has written to me stating that I must get back to them in 10 days or they will begin looking for new tenants. They go on to offer the option of signing a new fixed term contract.

I would prefer to simply go into a statutory periodic tenancy, however would consider signing a new fixed term contract for 6mths. My main issue is the renewal charge the letting agency is quoting - 1/4 of our monthly rent (£700) + VAT = £210! I think this is a ridiculous amount of money for the work involved. According to the letter they will re-credit check me, however they state they will cover the £30 charge for this.

My current plan is to reply to the letter stating:

• I am happy in the property and would like to stay on the basis of a statutory periodic tenancy.
• If the landlord would prefer for us to leave so that new tenants can be found, then they should put this in writing to me, clearly stating that the landlord has been consulted and this is his preference.

Does this seem like a reasonable approach? I think they may reply simply stating that it is their policy to only deal with fixed term contracts, however there is nothing at all in our rental agreement that mentions anything along these lines.

Thanks in advance for any guidance.

poppysarah

I still don't know why Martin can't take this issue up as is a bad thing for tenants.


Your approach sounds a good plan!

cjmumto2

That sounds strange, my tenants have been in my property for 3 years and do not get charged everytime the contract is renewed and certainly dont get re checked. I have to pay a fee to renew the contract but not them. But then I dont know how all agents work.

Where we are contracts are usually 12 months with a 6 month break clause so should suit you if you are willing to lock in for 6 months. As to the credit check I wonder if they are really going to do it or just get the money for themselves. I know that if we chose not to renew contracts and rather just let it go on to a month by month thing then there would be no charges

YOur plan sounds good to me too.

slyracoon

Your approach is reasonable. They rely on people not understanding their rights and just paying up without questions.

Send a polite letter pointing out that you would prefer to continue onto a statutory periodic tenancy under the same terms as your current contract. You could also explain that if the Landlord prefers the security of a fixed term contract then you are happy to agree to it but at his expense.

I've done that multiple times in the past. They will either back down once they realise you know your rights or will arrange with the landlord to waive the fee. The landlord would be a fool to serve notice based on the tenant not wanting to pay a ridiculous renewal fee.

Its also worth sending a copy of the letter direct to the Landlord. Once the LA realises they are not getting their fee who knows what they will tell the Landlord in order to convince him to serve notice so that they can get new tenants (and all the fees that go with it).

Squattie

Thanks slyracoon.

I did think CC'ing the landlord would be a good idea but didn't have their address.

However, your post prompted me to do a bit more digging and I've just obtained it from the Land Registry website for £4, so will send them a copy

G_M

1) I would NOT put the 2nd suggestion forward ("If the landlord would prefer for us to leave...."). Why put this in his mind? And why tell him he has to put it in writing? If that's what he wants to do a) he'll do it and b) if he doesn't put it in writing, more fool him!

2) You could suggest your willingness to sign a new fixed term contract (6 months? 12? whatever you prefer) as you plan to stay, but are not willing to pay a fee to do so. This would be a better option 2 than the one you propose.

3) The landlord's address for the serving of Notices (and letters like this!) should be on your contract. If it is not, you do not have to pay rent. (thought the address may be c/o an agent).

4) your letter should be sent to the LL, and cc'd to the agent, not the other way round! The landlord is the one who makes the decision as it is his contract!

Squattie

Thanks all for your comments. This is the 1st draft of the letter I have written to send to the letting agency.

[FONT=&quot]Dear xxxx[/FONT]

[FONT=&quot]Thank you for your letter dated xx/xx/2011 regarding the above.[/FONT]

[FONT=&quot]I can confirm that we are happy in the property and are therefore considering continuing our tenancy. [/FONT]

[FONT=&quot]Our preference would be to simply move to a Statutory Periodic Tenancy rather than sign a new fixed term contract. I believe this will happen by default at the end of our fixed term contract as per Section 5 of the Housing Act 1988. There should therefore be no work for yourselves to undertake nor any fees to be paid by ourselves or the landlord.[/FONT]

[FONT=&quot]However, I understand that the landlord may prefer the security of a fixed term contract. If this is the case, please confirm it to me in writing. Please also provide a breakdown of the work involved for yourselves which will result in the £210 charge quoted in your letter (1/4 of our £700 monthly rent plus VAT).[/FONT]

[FONT=&quot]Yours sincerely[/FONT]


xxxx

rexmedorum

I'm not even sure I would offer to sign a new fixed term contract in first instance

climbgirl

What's the relationship like with the landlord, can you talk to them directly?

Ours uses letting agents to find tenants initially but once they've been in for a while and she trusts them, she ditches the agents and deals directly with tenants - cuts out fees at both ends!

Squattie

We've never had any dealings with the landlord. In fact, we only have their name on the contract, no address/telephone number (as per my post above I've obtained their address from the land registry).

It probably would be the best outcome if the landlord contacted us to arrange dealing direct - however as they live in a completely different part of the country I can appreciate that they may prefer to have a letting agency to deal with maintenance requests, etc.

rexmedorum

Squattie wrote: »

we only have their name on the contract, no address/telephone number (as per my post above I've obtained their address from the land registry).

Isn't this required for a legally binring contract though?