Letting Agent renewal Fees

dafman

I have been renting my flat for 2 years now through a local letting agent. The agent was employed initially on an introductory service and I pay my rent directly to the landlord. Last year I renewed my 12 month AST and paid £195 renewal fee and one months rent to the agent. The landlord was angry about this but I explained thats what I did when I moved in and what the LA instructed me to do. Nothing more was said by the LL. This year I have decided to let the tenancy roll. The letting agency called me 3 wks ago and asked me to do a deal. They said if I paid them my first months rent after the AST expires they will reduce my rent by £100 for that month and waiver the £195 extension fee. They even sent me an email informing me the £195 fee is complimentary. Based on last years experience I thought it best to inform my LL that I will be paying the LA this month. My LL gave me strict instruction to pay him directly. I then informed the LA I will be paying the LL as my agreement is with him and I dont want to be accused of defaulting on my rent. The LA got quite abusive saying I now need to pay £195 to extend. I told them NO as I am not extending, the existing agreement is continuing and no new paperwork is being drawn up!!. After some exchanges the LA ended the conversation with "Well it doesnt matter anyway because we have you security deposit" My agreement does stipulate that I have to pay £195 to extend the term of tenancy and I also noticed in the section "Definitions" "Term or Tenancy" includes any extension or continuation of the contractual tenancy or any periodic tenancy arising after the expiry of the original term, but its hardly clear and tucked away in a different part of the agreement. Really not sure what to do now. If I dont pay they will surely take the fee from my deposit. I can't understand how the LA remains in business with the morals & integrity that they demonstrate. Any advice appreciated

G_M

Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

Your contract is with the landlord, not the agent, and HE is responsible for returning your deposit when you leave.

Is your deposit registered in a scheme? Check for yourself. Deposits (Rules on deposit protection)

My LL gave me strict instruction to pay him directly.

In writing? If so, you have no choice. You MUST pay the landlord direct. If you do not, you will just be giving 'gifts' to the agent and running up rent arrears with the landlord!

dafman

The deposit is registered with TDS. I understand his scheme insures the deposit and the LA still retain the capitol in their bank account.

In my agreement it does state that I have to pay £195 to extend, which I did last year by taking out another 12 month AST. My LA claims that this fee also applies if I let the agreement move into a rolling periodic agreement. My argument is that there is no admin required to move to a rolling agreement!! The LA just keeps telling me to read my contract.

I do still have the email from them telling me the £195 is complimentry this year, but now they tell me that this was only offered if I paid one months rent to them.

princeofpounds

Ignore the LA! You have no contract with them, your only contract is with your landlord, and you should pay rent as directed by him (get any instructions in writing if they are different to what is in your original tenancy contract).

Your only responsibility is to pay rent to the landlord and how the agent and landlord deal with their own commercial relationship is totally irrelevant to you.

It doesn't matter what it says in the contract regarding renewal fees. A rolling statutory periodic tenancy automatically arises under law and if both you and your landlord are happy with that then great. A clause requiring you to pay your agent will never stand up in court as it will be an unfair clause.

The responsibility for returning your deposit lies with the landlord so it doesn't matter if the LA steals it, particularly if it is protected.

This is a weird situation - often LAs try to skim a little from landlords but open 'warfare' like this is unusual. Have you asked the LL why the agent is still involved at all?

Presumably the agent thinks they are entitled to 1 month/yr renewal and the landlord either thinks they are not entitled under their contract, or that he can avoid this simply by not renewing.

But if I were the landlord I would have fired agents like this a long time ago. And in your case if you are in contact with the landlord I would ignore the LA totally.

G_M

dafman wrote: »

The deposit is registered with TDS. I understand his scheme insures the deposit and the LA still retain the capitol in their bank account.

....his scheme insures the deposit and the LA still retain the capitol in their bank account on behalf of the landlord.

Your contract is with the LL. He is responsible in law for your deposit and returning it. Whatever arrangement he makes between himself and the agent (eg regarding the deposit) is not your concern.

When you leave, you ask your LL for your deposit back. If he refuses, or refers you to the agent, you sue..... the landlord.

dafman

Great advice here folks and some really informative links. Thank you for your views.

Fire_Fox

Unfair and unenforceable clause if applied to going onto a statutory periodic tenancy. Don't discuss and debate this with the letting agent they have no way of claiming this from you, you are contracted to the landlord so they have to return your damage deposit.