tenant to pay for renwed lease?

louisj

My daughter is in a rented flat which has a lease of 12 months. This lease needs to be renewed in september and she has been asked to pay £120 to do so. When she rang the agent to ask what she was paying for she was told she was paying for the legal documents for the lease to be renewed. I have never heard of this before and believed the landlord paid for these things. The option of moving over to a six month lease is not there so the landlord clearly wants the security of a 12 month tenant. But does the tenant have to pay for this? They told her that if she left before the 12 months then she may be liable to pay for them to re-advertise the flat..and of course she would lose the deposit. This is a reputable agency ( I think. 'Countrywide')

theartfullodger

"Reputable" eh?? What reputation ?? A reputation for ripping tenants off??

In Scotland such charges are illegal. In dear old Engerland they can pretty much charge what they want, but she doesn't have to pay (?? eh, explain that one please..).

The lease does not "need" to be renewed.. If there is no new, renewed agreement the old one simply rolls on, month-by-month, as a "periodic tenancy" with all the same terms as before. That's the law. Agents don't like this as this prevents them charging fees..

However if the tenant and/or the landlord want a new agreement one can be drawn up & agent/landlord can chose to make a charge for this... Since that nice Mr Cameron came in he decided not to regulate agents as Labour had been planning to... they can pretty much do what they like.. (and require no training, no qualifications, no regulation, no Criminal Records check, etc etc..)

And if tenant doesn't go with a new agreement?? Landlord may issue "Section 21" notice giving 2 months notice that he may start legal proceedings to get Tenant out.. (Blame Mrs Thatcher for bringing in that little gem..). With a new agreement if tenant pays rent then they are safe to stay for the initial fixed term.. (6 or 12 months usually...), with S21s not valid until 6 months after start of new agreement.


Cheers!

Artful

btw it is entirely possible agent will also be charging the landlord for this printing-off of a standard agreement, real cost some £10...

jjlandlord

[Assuming England or Wales]

louisj wrote: »

When she rang the agent to ask what she was paying for she was told she was paying for the legal documents for the lease to be renewed.

It is costly to change a date on the document and click 'print', you see.

louisj wrote: »

I have never heard of this before and believed the landlord paid for these things.

It is quite common for letting agents to try to charge such fees.

I believe that agents themselves cannot impose such fees on tenants, as they work for the landlord, not the tenant.
That said, the landlord can equally charge the tenant to issue to new agreement.

louisj wrote: »

The option of moving over to a six month lease is not there so the landlord clearly wants the security of a 12 month tenant.

Your daughter should discuss with the landlord as agents may have vested interests of their own.
Remember that a tenant has no obligation to renew anything as the tenancy will automatically become periodic past the fixed term.
Of course the landlord could then decide to evict the tenant if he does not like this arrangement. Personally I do not see why a landlord would do that if he has a good tenant.

louisj wrote: »

They told her that if she left before the 12 months then she may be liable to pay for them to re-advertise the flat..and of course she would lose the deposit.

Once a tenant signs up for a fixed term he is bound for the whole term. Thus, the landlord is free to impose his own conditions to accept an early surrender.

crazyguy

Im with the above posters, agents being greedy to line there own pockets, ( money for old rope )

Mrs_Z

Could not agree more!

birduk

Artful, I do find myself clicking thanks to a lot of your posts. You should get commision for working here.

theartfullodger

birduk wrote: »

Artful, I do find myself clicking thanks to a lot of your posts. You should get commision for working here.

I know, I know.;. Keeps me off the street though!! Keep it up!!!

For what it's worth I never for properties I manage myself ever charge for references or tenancy agreements ..

dancingfairy

I'm a bit confused here though - surely she can leave anytime up until the expiry of her 12 month contract? She will of course be liable for the cost of rent up until the end of the set contract though. The deposit is a seperate issue altogether.
IF she is likely to need to leave part way through a 12 month contract then she should make sure there is a break clause in it otherwise she will be liable for the full 12 months unless she can strike a deal with the landlord. A fair deal is normally thought to include paying rent and bills until a new tenants can be found (and the landlord is happy with) and paying for readvertising costs.
In short don't sign a 12 month tenancy with no break clause unless you are reasonably happy you want to stay for 12 months or are prepared to pay whatever the landlord wants to be released early from the contract.
In this,as in many things negotiation (with the actual landlord not necessarily the letting agents) is key. Rememeber that the lettings agents may just want the most in fees, which is not always the same thing as the landlord wants.
df

dancingfairy

IF I wanted to stay then I would consider paying the 120 pounds as it costs a lot more in fees to move post redirection, new deposit upfront, new reference checks, help with actual moving etc. I would however make sure it had a break clause in it.
df

jjlandlord

dancingfairy wrote: »

otherwise she will be liable for the full 12 months unless she can strike a deal with the landlord.

Exactly. Here the agent has hinted that a deal would include forfeiting the deposit.
Again, the landlord is free to set his conditions.

Of course if tenant leaves before the term is up the rent liability would continue as long as the landlord treat the tenancy as continuing: E.g. if LL regains possession or agrees to re-let the tenancy would end and so would the rent liability.

dancingfairy wrote: »

IF I wanted to stay then I would consider paying the 120 pounds as it costs a lot more in fees to move post redirection, new deposit upfront, new reference checks, help with actual moving etc.

The same goes for the landlord: Is it worthwhile to evict a perfectly good tenant just because she does not want to sign up for a new fixed term?
On the other hand, obviously the agent would be happy to charge the landlord for finding a new tenant...

jjlandlord

theartfullodger wrote: »

With a new agreement if tenant pays rent then they are safe to stay for the initial fixed term.. (6 or 12 months usually...), with S21s not valid until 6 months after start of new agreement.

S.21 notices cannot take effect during the fixed term, unless there is a break clause and the notice is used to action it.