Letting Agent's Renewal Fee

Tabitha_T

My tenancy is being renewed and I have received the new agreement paperwork from the agency (a well known nationwide franchise).

Do I have any redress with regard to the renewal fee? All they have done is send through a photocopy of last year's tenancy agreement and simply changed the date. For that, they are trying to charge me £66. It really is crazy and I am seriously struggling to find this amount of money. I queried it last year (when it was £62) and was told it was standard and in the small print, which I don't doubt, but seriously, can I do anything about this? I accept there may need to be a small admin fee to cover time, paperwork and postage but £66? No way. Is there any letting agency 'body' that makes recommendations for such fees that they must take note of? Would Trading Standards be interested in taking up the case?

If anybody has any advice or experience with regard to this I would be very pleased to hear from you. Thanks. Tabs

Werdnal

You don't actuall yEVER need to renew the tenancy once the Fixed Term ends. The day after the FT expires, you automatically gain a Statutory Periodic Tenancy. However, agents don't tell you this as they like to impose their fees for pressing print and sending you the new contract.

The tenancy continues BUT the SPT means the agent/LL can give you 2 months notice that they require possession, and you can give 1 month's notice that you wish to leave. You may have already received the notice within your tenancy documents - it will be known as an S21 or Section 21 notice requiring possession.

Tell them you want an SPT and let us know what they say. Many agents will tell you they "don't do SPT's" (obviously as they cannot charge you a fee), but it is a perfectly valid and legal way to continue your tenancy ad infinitum.

I have let property for 13 years, and always give my tenants an initial 6 month FT. Once this expires they get an SPT, and one tenant stayed for 5 years, never having signed a new agreement.

Do you know who your LL is? No doubt he/she is also being charged for this pointless exercise. Contact them direct if you can, and explain that you want to stay, but cannot afford the renewal fee, which is unnecessary anyway.

Search the forum as this point comes up almost daily!

Tabitha_T

Many thanks for your advice. We originally had a document entitled: 'Assured Shorthold Tenancy Agreement'.

The renewal paperwork is entitled: 'Supplemental Agreement'. The text underneath reads: This Agreement is supplemental to an Assured Shorthold Agreement (the Principal Agreement) dated ****2010 between the Landlord and Tenant (the Parties).

On page 2 of the Supplemental Agreement there is a Deed of Variation which details the Break Clause. This says that the Landlord may give us two months notice to vacate at any time during the Tenancy term but the Tenancy cannot be terminated until after the first 6 months of the term. Similarly, the second paragraph gives the same right to the tenant, again with the 6 month protection.

In terms of payment, theie original renewal letter back in March informed me that the admin fee would be £62. Then, in a more recent letter containing the Supplemental Agreement paperwork there is an invoice for £66, it's gone up! Incredible.

Our landlord is known to us and lives close by, indeed he recently tried to break away from the agent as he too was fed up with their exorbitant fees for doing very little. Management visits from the agent have been nothing more than an excuse to sit and drink my coffee for an hour with no inspection taking place. However, we were disappointed when our landlord informed us that it was too expensive for him to 'buy' his way out of the management agreement and we would still need to deal with the agent. What he has done is to reduce their service to him so they are now just in place to collect the rent and all maintenance issues are to be handled direct by him.

So, feeling a bit stuffed all in all, I don't want to rock the boat by refusing to pay and the agent telling the landlord we're being difficult. As ever, being a tenant, one always feels one's position is extremely fragile.....I daren't risk compromising our longer term position. Oh dear...

DRP

Tabitha_T wrote: »

Many thanks for your advice. We originally had a document entitled: 'Assured Shorthold Tenancy Agreement'.

The renewal paperwork is entitled: 'Supplemental Agreement'. The text underneath reads: This Agreement is supplemental to an Assured Shorthold Agreement (the Principal Agreement) dated ****2010 between the Landlord and Tenant (the Parties).

On page 2 of the Supplemental Agreement there is a Deed of Variation which details the Break Clause. This says that the Landlord may give us two months notice to vacate at any time during the Tenancy term but the Tenancy cannot be terminated until after the first 6 months of the term. Similarly, the second paragraph gives the same right to the tenant, again with the 6 month protection.

In terms of payment, theie original renewal letter back in March informed me that the admin fee would be £62. Then, in a more recent letter containing the Supplemental Agreement paperwork there is an invoice for £66, it's gone up! Incredible.

Our landlord is known to us and lives close by, indeed he recently tried to break away from the agent as he too was fed up with their exorbitant fees for doing very little. Management visits from the agent have been nothing more than an excuse to sit and drink my coffee for an hour with no inspection taking place. However, we were disappointed when our landlord informed us that it was too expensive for him to 'buy' his way out of the management agreement and we would still need to deal with the agent. What he has done is to reduce their service to him so they are now just in place to collect the rent and all maintenance issues are to be handled direct by him.

So, feeling a bit stuffed all in all, I don't want to rock the boat by refusing to pay and the agent telling the landlord we're being difficult. As ever, being a tenant, one always feels one's position is extremely fragile.....I daren't risk compromising our longer term position. Oh dear...

I don't think you are stuffed at all. To me it sounds like you are in a very good position as the LL doesn't seem to have any confidence with the agency either and he seems happy with you as tenants.

Right now, the only reason to sign the renewal is if you are desperate for the security of a 6 month tenancy. It sounds like you get on with your LL so perhaps contact him and say that:

a) you wish to stay for at least the next 6+(?) months.
b) You don't want to pay the fee / can't afford to.

The Supplemental Agreement doesn't seem to add anything to the decision you make here...

princeofpounds

Yes, speak to the LL, say you want to stay for at least 6 months, but that you don't want to pay a renewal fee to the agent for doing nothing so would rather let the tenancy roll on to a SPT.

The only downside to this is theoretically the LL can change their mind and end the tenancy with 2 months notice.

If the extra 6 months of total peace of mind you would get from having a fixed term is worth it then you may wish to consider swallowing a renewal fee (this assumes the LL does not feel able to produce their own version of the agreement).

But given you know the LL, it's a pretty small risk.