Estate agent renewal fee on periodic tenancy

ena009

HI
I am in argue with my estate agent regarding the renewal fees. I have a flat and the XYZ estate agent have the service to "let" only. They claim that I have to pay the fee every year as long as th tenants occupay the flat even if I allow the contract to roll on Periodic tenancy.
They say that these 2 paragraph in the T&C advice on this:

Tenancy renewal pag 2“ …XYZ. Rent management fee is payable for the duration of the Tenancy , which for the purpose of these terms of Business is the period stated in the Tenancy Agreement including any renewal of the Agreement.”
Payable Fees pag 3: …”any subsequent renewal of the agreement , where negotiated by XYZ or not, will be charge at %....”
When I gave the lettting servive to them I wanted a "letting" only and I was not aware of the renewal fees. I wrote on the contract the % to pay to them and make them signed but I did not deleted the total paragraph of the fees.
So even "periodic contract " are subject to renewal fee? Are they right? thanks for any help

BitterAndTwisted

A tenant automatically going onto a rolling periodic tenancy the day after the fixed-term ends is not a renewal, it's the same tenancy.

Fully expect the agent to fight tooth and nail to get a fee from you and very possibly from your tenant as well.

mart.vader

ena009 wrote: »

HI
I am in argue with my estate agent regarding the renewal fees. I have a flat and the XYZ estate agent have the service to "let" only. They claim that I have to pay the fee every year as long as th tenants occupay the flat even if I allow the contract to roll on Periodic tenancy.
They say that these 2 paragraph in the T&C advice on this:

Tenancy renewal pag 2“ …XYZ. Rent management fee is payable for the duration of the Tenancy , which for the purpose of these terms of Business is the period stated in the Tenancy Agreement including any renewal of the Agreement.”
Payable Fees pag 3: …”any subsequent renewal of the agreement , where negotiated by XYZ or not, will be charge at %....”
When I gave the lettting servive to them I wanted a "letting" only and I was not aware of the renewal fees. I wrote on the contract the % to pay to them and make them signed but I did not deleted the total paragraph of the fees.
So even "periodic contract " are subject to renewal fee? Are they right? thanks for any help

Just come back from court today with an identical case. (I am not a lawyer)

The Judge said "If you signed it - you are bound by it." Renewal Fees apply every year (whether agent does anything or not,) while tenant remains in occupation.

Judge would not hear anything about unfair terms in consumer contracts (It was in our defence) The claim for renewal fees was upheld.

So, Be Warned.

ena009

ok thanks, I thought that renewal means "renewal" of the contract (new contract printed etc) and that periodic tenancy was not subject to fees. I have terminated the rent service with the estate agent but they are claming the total fee if tenancy roll on peridic. ...hmmm...

Hump

See http://www.oft.gov.uk/OFTwork/consumer-enforcement/consumer-enforcement-completed/foxtons/ for a summary of a recent case

NB to be clear, these fees can still be charged but the agreement must not be 'unfair'

tbs624

BitterAndTwisted wrote: »

A tenant automatically going onto a rolling periodic tenancy the day after the fixed-term ends is not a renewal, it's the same tenancy.

The original Fixed Term tenancy and the Stat Periodic tenancy that arises courtesy of s5 of the HA88 after expiry of the FT aren't "the same tenancy" - they are different ones (regardless of the fact that the terms of the first, except for those on determination, apply to the latter)

OP - if the fees clause was clearly worded and not hidden away in small print somewhere then it is likely that you will have to cough up, as mart.vader's experience indicates. ( See the judgement in the Foxtons case [edit:as linked to by Hump] )

whalster

How about you get 3 or 4 mates and get T shirts printed and walk up and down outside their shop on a saturday morning or market day something like that warning of the perils of using their letting agency video it and bang it on you tube then when it has made you atleast feel better , pay them the exsit fee join the RLA and do it yourself

ena009

:-) that would be funny whatsler...
so is there any exit fee? I have not read this on the contract, I guess I have to negotiate this with them.
I read that I can terminate the service with the estate given 2 months notice that I have done...but exit fee this is not mentioned....

Dave_Ham

Or call their bluff, tell them you have a friend who wants to move in and kick out the tenant - unless they want to cut you a deal...

Assuming you have not already agreed something and obviously notice etc. would need to be served...

ena009

Yes that would not be a problem.
The tenats are good people but they want a periodic instead of a 12 months contract , (they are not sure how long are staying in etc). When I informed the estate agent they said " you can roll on periodic but you own us the full fee". I was trying to help the tenants but I don't want to be rip off by the estate agent that already said that in case they leave I will not get any refund of the full fee. ... I read the contract and I was hoping that a periodic was a solution.

mart.vader

ena009 wrote: »

: so is there any exit fee? I have not read this on the contract, I guess I have to negotiate this with them.
I read that I can terminate the service with the estate given 2 months notice that I have done...but exit fee this is not mentioned....

If the contract is similar to the one that was just ruled on in "my case", then yes, there is an exit fee - its the same amount as the introduction fee and it applies every year!

"My contract" also says that the contract can be terminated with 2 months notice, however, the clause that the Judge has just upheld, says that the renewal fee is payable for as long as the tenants, that the agency introduced, remain in the property.

Perhaps you and I could swap tenants and then the renewal fees for both of us, would be finished?