Letting Agent tenancy renewal issues

pinteresque

Hello all

The issue of renewal fees charged by letting agents is one that has been dragged up here and elsewhere online for a while now, but my research has not uncovered a definitive way of dealing with it. Solutions seem quite vague and I'm not sure exactly where I stand. Citizens Advice also can't seem to help me beyond vague recommendations. I wanted to bring it up on here in case anyone can help me and in turn help anyone else in a similar situation.

We are approaching the end of our first year in our flat (having had to pay lots of fees at the start, only to do most of the leg work outrselves...bah!). We are happy there and want to stay for the foreseeable future. We have a good relationship with the landlord. We pay our rent on time via standing order. We have made cosmetic improvements to the property and want to continue doing so, which the landlord has approved and contributed financially towards. Our first year contract was a fixed term 12month-er with an 8 month break clause and a 2-month mutual notice clause. All sweet.

Our LA called a few days ago to ask whether, with 2months to go, we want to "renew our tenancy agreement for another year". I said yes, but before I did I checked that from now on it would go into a rolling situation, whereby we wouldn't have to wait 8months before giving our two month notice. Fine.

We then get a call from their administrator checking the spelling of our names. Fine.

Then we get a copy of the new 12-month tenancy agreement, which is a carbon copy of the previous one with the exception of a name change and the removal of the 8-month break clause. Fine.

Tucked away at the bottom of the pile is an invoice for £120 renewal fee. WHAAAT!!!

So here are a couple of questions I have:
1. What does that £120 cover?!

2. This new tenancy agreement appears to offer the same as a rolling 'periodic tenancy' which we automatically go in to if we don't take up another agreement. It has a 2-month notice period on both sides. It has all the same clauses and obligations as the first agreement. I can't see what this new agreement offers over a periodic tenancy. At this point, having verbally agreed to renew, can I decline to renew and move into a periodic tenancy? Does it matter that they didn't offer me this option when seeking a renewal? Should I consult my landlord about this?

3. The renewal fee comes out of the blue. At no point in their invitation of renewal did they 'remind' me about a £120 fee. Now, it may be that they mentioned it back when we were sitting in their office signing us up in the first place. But we don't remember it. Nor can we find anywhere in previous documents or emails, anything that mentions it, that says we will need to pay £120 renewal fee after 12months. The only thing that points towards it is this obligation in our initial agreement:

"As joint and several tenants to be responsible and liable for all obligations under this agreement which include the payment for the cost of checking the inventory on taking possession of the property and sharing the cost for the preparation or this tenancy agreement and any future tenancy agreement that may be required"

This seems really vague to me! I mean, yes, it seems that we have agreed to paying the cost of renewal for a future agreement. But no figure has been set. They could in theory turn round and demand £1000 renewal fee, right??

On that basis, do I have any justification for challenging the charge?

I really welcome any friendly or professional advice, as it seems like there's no clear-cut way of dealing with this common problem.

ognum

You are renting from the wrong agency, my letting agent charges me as a landlord £20 for a tenancy renewal. The tenant is charged nothing. I am happy with this.

custardcream1000

When we renewed with our current property we had a choice to either -
- pay a fee if we wanted to be on a rolling contract with the option to terminate early (so a break clause if you like).
- pay no fee if we agreed to keep the contract as it was already, which means we have no option to leave before the tenancy ends.

We chose the latter as we knew we would not leave before the tenancy contract ends. Maybe it is the same with your agency, and you are having to pay as you are asking them for a change to the original contract?

pinteresque

Thanks so far. Just to clarify, we have not asked for any changes to the agreement. We want things to stay just as they are. The only small difference is that I have changed my surname by deed poll, but I don't care whether that is amended on the agreement or not.

I guess the key thing is, is it too late for me to turn round and say that I want to go into a rolling periodic tenancy? If I can do that, then nothing gets renewed, and no renewal fees.

donfanatico

pinteresque wrote: »

Thanks so far. Just to clarify, we have not asked for any changes to the agreement. We want things to stay just as they are. The only small difference is that I have changed my surname by deed poll, but I don't care whether that is amended on the agreement or not.

I guess the key thing is, is it too late for me to turn round and say that I want to go into a rolling periodic tenancy? If I can do that, then nothing gets renewed, and no renewal fees.

I am not an expert, but IIRC you do not need to do anything at all, nor sign anything, it will automatically go into rolling after the current one expires.

pinteresque

donfanatico wrote: »

I am not an expert, but IIRC you do not need to do anything at all, nor sign anything, it will automatically go into rolling after the current one expires.

That's what I think, but I wish I had known that before they phoned me and I verbally agreed to renewing the contract. No, I haven't signed the agreement yet, but I did say I wanted to renew and they went to £120-worth of effort... to reprint the document and send it to me...

DRP

pinteresque wrote: »

On that basis, do I have any justification for challenging the charge?

I really welcome any friendly or professional advice, as it seems like there's no clear-cut way of dealing with this common problem.

The phone conversation might muddy the waters, but if it were me I wouldn't return the form, but write a letter confirming you're happyto stay on SPT.

I would copy the landlord in to the letter and also speak to him and reassure him that you wish to stay long-term but can't afford the exorbitant renewal fee.

donfanatico wrote: »

I am not an expert, but IIRC you do not need to do anything at all, nor sign anything, it will automatically go into rolling after the current one expires.

exactly!

G_M

Read:

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?)

donfanatico

pinteresque wrote: »

That's what I think, but I wish I had known that before they phoned me and I verbally agreed to renewing the contract. No, I haven't signed the agreement yet, but I did say I wanted to renew and they went to £120-worth of effort... to reprint the document and send it to me...

Verbal doesn't mean anything. Unless its on paper and signed you are ok

tim123456789

ognum wrote: »

You are renting from the wrong agency, .

as a tenant, 99 times out of 100, you don't get a choice

ognum

tim123456789 wrote: »

as a tenant, 99 times out of 100, you don't get a choice

I think it is now noticeable than some homes with particular agencies stick on the market far longer than other similar properties.

certainly in my area there are very savvy renters who read and write on the agency review sites.

I don't think it is entirely true there is no choice. Renters need to ask questions at the start of the tenancy, read the agent reviews and be aware.

In my area on any one day within a small price band there are 10s of properties available. Both landlords and tenants need to reject the poor agencies.