Agency Contract Renwal Fees

darce87

Hi,

We've decided to extend our tenancy in our house. The rent has gone up slightly, and the length of the tenancy will be 12 months with a 6 month break.

The agency has charged us £270 to renew this contact. Surely they just change a date, and the rent amount and press print?

Does anyone know a way to negotiate or avoid paying this ridiculous fee?

Thanks

Werdnal

You don't actually need to "extend" the tenancy at all. The date after your fixed term ends, if you have not left or given notice, the tenancy converts to a Statutory Periodic Tenancy or SPT (do a search as this comes up all the time).

The SPT carries all the existing terms and conditions of your existing tenancy, except you can give 1 month's notice to leave, and LL needs to give 2 month's notice if he wants to apply for possession of the property.

Renewals are just a money making exercise for agents, and they will likely tell you "Oh we don't do SPT's" but as long as you are happy not to be bound in for the full 6/12 months, insist that you do not need to renew. Likely the agent are also charging the LL (telling them they must renew otherwise your tenancy will be "illegal" or some such waffle - sadly LLs tend to believe the "higher intelligence" of their agents). Can you contact the LL direct, explain that you want to save them and you the cost of a renewal and are happy to remain on an SPT.

I have let property since 2000, and all my tenants get an initial 6 months Fixed term, then convert to SPT at the end. One tenant stayed nearly 6 years, never having signed a renewal!

DRP

Assuming you have a fairly ok relationship with the LL, then i would contact them directly. Tell them you are happy to stay for a further 6/12/whatever months and unfortunately cannot afford the 270 quid (which seems totally extortionate, even by LA standards) but are happy to continue under the SPT.