Tenancy 'Renewal Fee'

ollyver27

Hi there,

My current letting agent is trying to charge me and flatmate £200 total (£100 each) to renew our contract. I could understand this if our circumstances had changed, but they use the same reference forms we submitted, and it is just billed as a 'renewal fee'.

Also, they do not offer the option to go on a statutory periodic tenancy at all.

Email:

Your options are:-

- leave at the end of the tenancy, in which case your final day in the property is 21.2.14
- renew for a further 6 or 12 months, the renewal fee is £200 (total) and a new tenancy is put in place

As part of the renewal process you will be re-referenced using the forms you completed when you moved in - if any details have changed and you wish to remain in the property we require you to complete and sign a new form (a blank one is attached).

Relevant things in the contract:

Ending the Tenancy (Determination of the Tenancy by the Tenant(s))

9.8 If the Tenant intends to vacate the Property at the end of the Term, or at any later date, he agrees
to give the Landlord at least 1 month’s notice in writing.
9.9 If the Tenancy has become a Statutory Periodic Tenancy any Notice served by the Tenant must
be served on the Landlord at least month prior to vacating the Property; such Notice to expire on
the day before the Rent due date.

2.6 If the tenancy is continued as a Statutory Periodic Tenancy then the Rent will increase annually
on the anniversary of the 1st Rent due date by the amount stated for the annual increase in the
Index of Retail Prices (all items) as quoted for the month immediately prior to the anniversary of
the 1s Rent due date in any given year. This is without prejudice to the right of the Landlord to
seek to end this agreement and recover possession of the Property at the end of the Term;
pursuant to Section 21 of the Housing Act 1988 (or any amendments thereof). The Rent will not
be reduced below the figure stated at page 2 of this agreement at anytime.

Can't find anything regards to their obligations on this, and doesn't mention a renewal fee.

Can anyone help on this? And if you need any more info from me pls let me know.

Thanks for your help

nidO

This is just one of the way lettings agents like to ream both their tenants and landlords for extra cash, charging a fee (usually to both) for drawing up a new contract which generally involves nothing more than changing the dates on the old contract.

If you don't want to pay the fee, your alternative is to simply tell the agent that you aren't willing to pay a fee for a contract renewal and are happy to move to a statutory periodic tenancy thanks very much, they might huff about it but ultimately its down to the landlord whether they're happy with that, and most landlords aren't likely to kick a tenant out who's paying their bills just because they wont sign for a further 6/12 months.

Bear in mind however that signing for a new period does protect you from rent increases for that period, where on a statutory periodic tenancy the landlord can increase your rent.

Pixie5740

I'm guessing you're in England as LA are not allowed to charge such fees in Scotland.

You might find a section 21 was issued when your tenancy started so the LL could start the eviction process at the end of your fixed term. Do you know if one has been issued?

It might be worth contacting the LL directly and saying you are happy to stay in the property on a periodic tenancy. Ultimately it's the LL who can evict you, not the LA. No doubt the shysters will also charge the LL some fee if they manage to get you to sign a new fixed term tenancy.

EDIT: I didn't see nidO's post as I was busy typing away. The advice is more or less the same.

ollyver27

Thank you both for the advice!

Pixie5740 wrote: »

I'm guessing you're in England as LA are not allowed to charge such fees in Scotland.

You might find a section 21 was issued when your tenancy started so the LL could start the eviction process at the end of your fixed term. Do you know if one has been issued?

It might be worth contacting the LL directly and saying you are happy to stay in the property on a periodic tenancy. Ultimately it's the LL who can evict you, not the LA. No doubt the shysters will also charge the LL some fee if they manage to get you to sign a new fixed term tenancy.

EDIT: I didn't see nidO's post as I was busy typing away. The advice is more or less the same.

How do I find out whether a Section 21 was issued?

Thanks

ollyver27

Also, if I sent them an email requesting an auto-periodic and they refused, would they still have to give 2 months? Or can they tell me to leave right on the end date of the shorthold contract?

Thanks

CKhalvashi

ollyver27 wrote: »

How do I find out whether a Section 21 was issued?

Thanks

It will be with the paperwork.

I issue as a matter of course, and have always been happy for my tenants to go onto periodic on condition bills are paid on time; they're sometimes issued as 'worst case' scenario. I don't deal with an agency, however.

theartfullodger

They can refuse periodic but it will happen anyway if you remain in the property for 1 second after end of fixed term.

Stupid, ignorant agent. I'd simply ignore them..

As above, contact landlord & see what he says: Any sensible ll with half-a-brain would prefer a "good" tenant who pays on time to agent fees & a tenancy gap. Even if LL says no to periodic it will happen anyway.

Sadly not all landlords are sensible nor may they have even half-a-brain! (I am a landlord...)

Cheers!

corbyboy

Contacting the landlord would be an excellent idea. Especially since the agent will probably call the landlord and tell him "the tenant doesn't wish to renew so is going to move out."

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?)

ollyver27

Thanks for all your advice.

One more question. If we were to go with the send letter to LL option stating we want periodic and don't want to pay the fee - could we then get an email/letter back saying 'fine - but the rent has now gone up by £100' or something similar?!

Thanks again,

CKhalvashi

ollyver27 wrote: »

Thanks for all your advice.

One more question. If we were to go with the send letter to LL option stating we want periodic and don't want to pay the fee - could we then get an email/letter back saying 'fine - but the rent has now gone up by £100' or something similar?!

Thanks again,

It's possible.

If you're looking at a long term let, tell the LL this. I've knocked around £50 a month (4%) from a rental price knowing that I'm not going to have voids and I'll have tenants that will look after the property. The same tenants are still living in the property 7 years later.

If the property was empty for one month a year, it would cost me £1200 each year, so to offer £600 from the rent each year is the best solution all round.

CK