A few issues with our letting agents

gregdedman

Hi guys,

Happy new year to you all, ill keep this brief if I can.

My girlfriend and I have been on an assured sorthold tenancy for 12 months with a 6 month release clause. We now receive a letter from the agents asking for £125 for a renewal fee for a new contract lasting 12 months, again with a 6 month release clause.
They are also asking the land lord for the same renewal fee.

They are also asking for a rent increase of £30 per month

Our original contract mentions nothing about this fee and we are seeking advice to see if this is a lawful fee or something that we can contest.
We also don't understand why we have to return to the original 6 month release clause and lose our flexibility of a months notice.

As a side note, the agents have been completely useless in the time weve been here, all problems are dealt with through our friendly landlord and the only time we hear from the agents is now they want more money.

Any help would be much appreciated.
Regards
Greg

silvercar

If you want a new 12 month contract you may have to pay.

If you want to continue under the current AST, then it becomes periodic. Everything remains the same except the the landlord can give 2 months notice, to end at the end of a rent period, for you to leave. You would need to give a months notice, again to end at the end of a rent period.

Is the extra security worth paying for? You have to decide.

Also upto the landlord, if you refuse to pay and sign, you may be given notice to leave. Or the landlord may be happy with a periodic tenancy. Speak to the landlord direct and ask.

If the landlord wants to increase the rent he can do so by issuing a section 13 (I think) notice.

dodger1

If the LL isn't tied to a long contract with the LA suggest dealing direct with him, it will save both of you money in the future.

Alias_Omega

gregdedman wrote: »

They are also asking the land lord for the same renewal fee.

I would ignore the Letting Agents, and speak direct with the Landlord.

The chances are that the agent is pushing for the rental increase, which they are telling the landlord they can get £30 per month more as rental prices have gone up in the area, the landlord will not say no to this as its cash all the way. The agent gets an increase in revenue, the landlord gets an increase in revenue.

A happy landlord is a happy landlord, if your rent is paid on time and you have a happy relationship with the landlord then i cannot see why a rent increase should be due. Ask them what there plans are for the next 12 months with the house, and are you secure to stay there.

Any landlord increasing the rent at this time and moment are insane, to spite my Letting Agent (We recommend a £40 per month rental increase) I would consider a rent reduction each year the tenant stayed...

Something (£££) is better than nothing (£0).

G_M

The fee is faily normal and if you choose to renew your contract you will have to pay it.

But whether you want to have the security of 6 months guaranteed, and lose the flexibility if a monthy peiodic tenancy is up to you.

As others have said, speak to he LL, agents have their own motivation which is not the same as the LLs.

tbs624

LA should have flagged up the renewal fee earlier in the process. As the others have said, your best bet is to talk direct to the L especially as you already have contact - the LL is no more likely to want to cough up for a spurious renewals fee that you are. Many Ts and LLs happily continue under a SPA for a number of years - as it arises under statute there is pretty much no work needed from the LA so no fee can be justified

If it's the LL himself who is pushing for the rent increase he can do that via a S13 Notice on a statutory periodic ( or check whether there is a rent review clause within the AST)

jjlandlord

G_M wrote: »

The fee is faily normal and if you choose to renew your contract you will have to pay it.

Tenant has no relation with agent and therefore agent cannot charge tenant for the work he does on behalf of the landlord.
So imo, this is not something OP would have to pay by default, but something to be negotiated.

gregdedman wrote: »

We also don't understand why we have to return to the original 6 month release clause and lose our flexibility of a months notice.

You don't have to. They are proposing a new contract, it's up to you to accept, refuse or negotiate.

As you seem happy to be on a periodic tenancy you can just do nothing. That will also mean that the rent will remain unchanged for the time being.
If you do discuss, do it directly with your landlord.

lynneinjapan

Alias_Omega wrote: »

A happy landlord is a happy landlord, if your rent is paid on time and you have a happy relationship with the landlord then i cannot see why a rent increase should be due. Ask them what there plans are for the next 12 months with the house, and are you secure to stay there.

Any landlord increasing the rent at this time and moment are insane, to spite my Letting Agent (We recommend a £40 per month rental increase) I would consider a rent reduction each year the tenant stayed...

Something (£££) is better than nothing (£0).

Depends on your local market - in a lot of places there's a shortage of rental property and rents are rising in line with inflation. I don't think it's unreasonable to expect a rent rise after a year, as long as it's not excessive. If you're paying, say, £600 then an increase of £30 is 5%, in line with the RPI. In London there are ridiculous rent hikes going on at the moment!

As PPs have said, though, there's no obligation to take out a new AST - it's a tactic often used by agents to get more fees out of their tenants and landlords. Very likely the LL will be happy to let it run into a statutory periodic tenancy - but may well still ask for a rent increase. Just tell the agent that you'd rather just let the tenancy run on, and speak to the LL direct to ascertain whether he actually wants a new AST before you agree to one. A lot of LLs just go along with it because they don't know it's optional! If the LLs does want it then he may give you notice to leave if you refuse, but it's unlikely if you're good tenants.

Alias_Omega

lynneinjapan wrote: »

Depends on your local market - in a lot of places there's a shortage of rental property and rents are rising in line with inflation. I don't think it's unreasonable to expect a rent rise after a year, as long as it's not excessive. If you're paying, say, £600 then an increase of £30 is 5%, in line with the RPI. In London there are ridiculous rent hikes going on at the moment!

Different minds, think different.

The whole country is facing a pay freeze. Unemployment is becoming higher as firms tighten the financial belt.

Food, Fuel & Vat have increased so less £££ is in the pocket at the end of the month. Not only are people facing higher Gas & Elec prices, a rental increase could be classed as unacceptable for pure profit.

The cost to the landlord has not increased, mortgages are the same. Repairs/Maintenance costs are the same on average, as the plumbers / electricians are trying to remain competative in a work reducing market.

However, were happy with the rent being the same. Were happy being £40-50 less than market value. Hopefully the tenant will see no value in moving, and we will have a tenant for life...

Another 2-3yrs and the property will be mortgage free...

:T:j:T

Alias_Omega

^^ Ha Ha..

Today, notice for tenant to quit the property received.

House will be back on the market at same rental value. A shame they no longer need a 3 bedroom house..

Me and my big mouth..