Letting Agency Charging Admin Fees to Release Deposit

darkvader

Hi,

Not sure if this is the norm or legal but my letting agent is charging us £90 as Finalization Fee to release our deposit. We have never been charged such a fee before by any agent and wanted to know if this is legally allowed.

The deposit must only be taken towards any work required on the property rented and is a straight forward process to release once agreed by both parties. I am already contesting the £100 renewal fee they are trying to charge me but just realized this £90 as finalization fee which is very high and not fair

Any experience or examples that agents are allowed to deduct admin fees from the actual deposit?

Thanks
DV

Guest101

You need to look at the contract, sometimes its legal, sometimes not. without wording its hard to say.

There is no cost to release the deposit, but there may be a cost to inspect the property upon exit.

I dont believe they can take £90 from your deposit however, and would need to take you to court for those costs (though i'm not 100% on this as fact - so lets see what others think)

darkvader

They put a clause in the contract that I agree to pay 10% of 1 month's rent as finalization fee however I checked on DPS and it clearly states just because a clause exists does not make it right. The agency must clearly prove why the fee is valid

This finalization fee has nothing to do with check out or inventory as it says its a final fee in the contract. Also it was clearly documented that check out and inventory is paid by the landlord. This fee is specifically charging me £90 to release my own money hence my question

Thanks
DV

Guest101

In that case, i cant see any reason why they think they can do this, and i'd raise a dispute with the DPS.

They cant just deduct your deposit for no reason

darkvader

Aah, so I opened the contract and read the exact word and it states this fees is towards finalization of the tenancy agreement which would be charged from the deposit.

We did pay about £400 for the reference/credit checks and admin fee to write up the tenancy when we first rented the property 2 years back so not sure why they are charging this admin fee out of my deposit now.

Little more digging to be done tomorrow morning before I finalize my thoughts on contesting the deductions

Thanks
DV

Guest101

£400 fees, blimey! I wouldn't pay that.

I know agency's must make money, but that's quite steep.

IE the work involved, cost and salaries + 20-30% wouldnt equal £400

G_M

It's really very simple.

The deposit the tenant's money, and is held against damage, rent arrears etc.

If it is not returned in full, the tenant can appeal against the deduction and the LL/agent mustprove damage/arrears etc.

If the LL wishes to charge some kind of additional fee ("finalise the tenancy agreement"? How?) that is a seperatematter.

darkvader

Well I think it was around £150 per person plus VAT which was around £330 but I am going to contest this

On another note of contention, if I may

1. When Year 1 was about to end, I was contacted 2 months before renewal to extend and the renewal fee of £100 including VAT would be waived and I said yes
2. Never having heard again, I contacted few days before tenancy end date and got the reply its all fine and was sent the extension to tenancy which said clearly it was a fixed extension of 12 months
3. I asked if I could have a normal extension so I can leave anytime rather than stay for 12 months and was told if you want such an extension then it has to be written up, signed and I will have to pay the renewal fees. I said no thanks I will stay the 12 months
4. I get the extension in the post, ask if anything more to be done and told that its all recorded on the system, please keep the extension with you
5. 2 months before our extension gets over, we are called to ask again if we want to renew or leave. This time we decided to leave. Very clear here that the agency calls me 2 months before the fixed term is over

Now guess what - I am being charged £100 renewal fee because I did not sign the extension 1 year back. Because I did not sign, it defaulted to a non normal extension!!! They pretty much contradicted points 2 and 3 in one go. Not only was I told if it was a non fixed extension it needs a separate contract but I will be charged renewal fees which why I accepted the fixed term extension!

Is it only me who thinks these guys are trying to screw me over?
I am fighting this but they are still saying no so with all email proof and their miscommunication I am going to DPS next week

DV

PasturesNew

More hidden renting fees... makes you spit. You can write off £1000/year in random fees if you're unlucky.

Sucks to rent....