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Extortionate tenancy renewal fee
pedgepuk
Posts: 111 Forumite
Hi all,
My tenancy of 18 months runs out mid May 2014 and have been at the property since May 2010, renewing twice so far, rent paid on time, no issues or concerns with the landlord or the landlord with me, the landlord has been good over the years and I’m sure they’ve viewed me as a good tenant. I live on my own and have my kids stay over every other weekend and the property is close to where they live here in London, and so convenient. The landlord knows this and was able to come to negotiate a minimal rent increase last time round without the agent controlling the over inflated percentage increase they always recommend.
Last week I received a courteous email from the letting agent (Kinleigh Folkard & Hayward) asking me if I’d received a letter from them requesting if I’d like to continue/renew my tenancy agreement or move out of the property. No letter was received and I replied back to that effect.
Now, I’ve just found out that they want to charge £210 including VAT for the renewal which is an increase of £54 since I last renewed in November 2012. I find this excessive to say the least and unacceptable to only change a couple of lines/dates in the contract. It’s an online agreement portal they use to facilitate the changes in the agreement and to append digital signatures, thus no actual pen/pencil writing required. The landlord also has to pay the same fee as per one of the clauses in the contract.
I’ve received another email and a couple of voicemails from the agent asking me to make a decision as my contract states that the marketing of the property will start on the penultimate month before the end of the term, meaning mid-March.
The landlord owns 10 out of the 14 properties in the building and has always used the same agent for tenant searches, agreements and collection of rent. The landlord manages the property.
With that all said I’m wondering what my options are to avoid this extortionate renewal fee. I’m inclined to contact the landlord and ask for a periodic tenancy although I can’t see anything in my contract regarding periodic clauses other than a definition shown below.
The other important clauses in my agreement are also below:
I appreciate any advice and thanks in advance.
P
My tenancy of 18 months runs out mid May 2014 and have been at the property since May 2010, renewing twice so far, rent paid on time, no issues or concerns with the landlord or the landlord with me, the landlord has been good over the years and I’m sure they’ve viewed me as a good tenant. I live on my own and have my kids stay over every other weekend and the property is close to where they live here in London, and so convenient. The landlord knows this and was able to come to negotiate a minimal rent increase last time round without the agent controlling the over inflated percentage increase they always recommend.
Last week I received a courteous email from the letting agent (Kinleigh Folkard & Hayward) asking me if I’d received a letter from them requesting if I’d like to continue/renew my tenancy agreement or move out of the property. No letter was received and I replied back to that effect.
Now, I’ve just found out that they want to charge £210 including VAT for the renewal which is an increase of £54 since I last renewed in November 2012. I find this excessive to say the least and unacceptable to only change a couple of lines/dates in the contract. It’s an online agreement portal they use to facilitate the changes in the agreement and to append digital signatures, thus no actual pen/pencil writing required. The landlord also has to pay the same fee as per one of the clauses in the contract.
I’ve received another email and a couple of voicemails from the agent asking me to make a decision as my contract states that the marketing of the property will start on the penultimate month before the end of the term, meaning mid-March.
The landlord owns 10 out of the 14 properties in the building and has always used the same agent for tenant searches, agreements and collection of rent. The landlord manages the property.
With that all said I’m wondering what my options are to avoid this extortionate renewal fee. I’m inclined to contact the landlord and ask for a periodic tenancy although I can’t see anything in my contract regarding periodic clauses other than a definition shown below.
The other important clauses in my agreement are also below:
Definitions
“Term” or “Tenancy” (set out in paragraph 1 of this Agreement) includes any extension or continuation of the contractual Tenancy or any statutory periodic Tenancy arising after the expiry of the original Term.
“Term” or “Tenancy” (set out in paragraph 1 of this Agreement) includes any extension or continuation of the contractual Tenancy or any statutory periodic Tenancy arising after the expiry of the original Term.
Terms
12.2. To permit the Premises to be viewed at all reasonable times during the penultimate month of the Tenancy in normal working hours including weekends, following a prior request and upon giving at least 24 hours’ notice in writing, by any person who is, or is acting on behalf of, the Landlord, or the Agent, who wishes to view the Premises with a prospective purchaser or tenant of the Premises.
12.3. To permit the Premises to be viewed at all reasonable times during the final month of the Tenancy in normal working hours, including weekends, following a prior request by any person who is, or is acting on behalf of, the Landlord or the Agent, who wishes to view the Premises with a prospective purchaser or tenant.
12.2. To permit the Premises to be viewed at all reasonable times during the penultimate month of the Tenancy in normal working hours including weekends, following a prior request and upon giving at least 24 hours’ notice in writing, by any person who is, or is acting on behalf of, the Landlord, or the Agent, who wishes to view the Premises with a prospective purchaser or tenant of the Premises.
12.3. To permit the Premises to be viewed at all reasonable times during the final month of the Tenancy in normal working hours, including weekends, following a prior request by any person who is, or is acting on behalf of, the Landlord or the Agent, who wishes to view the Premises with a prospective purchaser or tenant.
Individually Negotiated Clauses
30.1 Landlord’s Break Clause – Non specific
Notwithstanding the provisions contained earlier in this Agreement relating to the term of the tenancy the Tenant agrees that the Landlord shall have the right to terminate the Tenancy by giving to the Tenant not less than three calendar months notice in writing to end the Agreement. The notice is to be sent by first class post or delivered by hand to the address of the Premises as shown in this Agreement. The notice must expire at the end of a relevant period of the Tenancy which is the day before the rent normally falls due. Upon expiry of the notice this Agreement shall cease except that the Landlord and the Tenant can pursue their legal remedies against the other for any breach of any pre-existing rights under the Agreement apart from the pre-existing right to a fixed term contract which is subject to this break clause.
30.2 Tenant’s Break Clause – Non-Specific
Notwithstanding the provisions contained earlier in this Agreement relating to the term of the tenancy the Landlord agrees that the Tenant shall have the right to terminate the Tenancy by giving to the Landlord not less than three calendar months notice in writing to end the Agreement. The notice is to be sent by first class post or delivered by hand to the address shown in clause 28.1 in this Agreement. The notice must expire at the end of a relevant period of the Tenancy which is the day before the rent normally falls due. Upon expiry of the notice this Agreement shall cease except that the Landlord and the Tenant can pursue their legal remedies against the other for any breach of any pre-existing rights under the Agreement apart from the pre-existing right to a fixed term contract which is subject to this break clause.
30.1 Landlord’s Break Clause – Non specific
Notwithstanding the provisions contained earlier in this Agreement relating to the term of the tenancy the Tenant agrees that the Landlord shall have the right to terminate the Tenancy by giving to the Tenant not less than three calendar months notice in writing to end the Agreement. The notice is to be sent by first class post or delivered by hand to the address of the Premises as shown in this Agreement. The notice must expire at the end of a relevant period of the Tenancy which is the day before the rent normally falls due. Upon expiry of the notice this Agreement shall cease except that the Landlord and the Tenant can pursue their legal remedies against the other for any breach of any pre-existing rights under the Agreement apart from the pre-existing right to a fixed term contract which is subject to this break clause.
30.2 Tenant’s Break Clause – Non-Specific
Notwithstanding the provisions contained earlier in this Agreement relating to the term of the tenancy the Landlord agrees that the Tenant shall have the right to terminate the Tenancy by giving to the Landlord not less than three calendar months notice in writing to end the Agreement. The notice is to be sent by first class post or delivered by hand to the address shown in clause 28.1 in this Agreement. The notice must expire at the end of a relevant period of the Tenancy which is the day before the rent normally falls due. Upon expiry of the notice this Agreement shall cease except that the Landlord and the Tenant can pursue their legal remedies against the other for any breach of any pre-existing rights under the Agreement apart from the pre-existing right to a fixed term contract which is subject to this break clause.
I appreciate any advice and thanks in advance.
P
0
Comments
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Standard bullying tactics by the letting agent.
You don't have to go on to a fixed term if you do not wish to.
It does give you additional protection from eviction for 6 months as there is a break clause, and the rent cannot be increased during the term. It obviously gives the landlord some piece of mind too.
However, if you get on well with your landlord and they're content with the fact you wish to remain there then they have nothing to lose by letting the contract go onto statutory periodic. Note that it doesn't actually require anyone permission, its simply what happens automatically when the fixed term comes to an end.
My advice, ignore the agency and write to your landlord stating the agency are being unreasonable and you wish to remain in the property but would like the tenancy to roll onto periodic.
The agency gain a lot of money for very little work by charging a renewal fee, and seem to forget that they must act in the landlords best interests, not their own, which is why they're so aggressive about it.
You don't have to accept any viewings they may arrange. If they do attempt to gain entry with viewers, complain to the landlord and change the locks.*Assuming you're in England or Wales.0 -
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?)0 -
SerialRenter wrote: »You don't have to accept any viewings they may arrange. If they do attempt to gain entry with viewers, complain to the landlord and change the locks.
yes, OP must allow viewings as per section 12.3.0 -
jjlandlord wrote: »yes, OP must allow viewings as per section 12.3.
Come on, you know better than to state things like that as though they were a fact.0 -
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jjlandlord wrote: »They are a fact.
Breach of contrat has always the potential to bite you if it leads to a loss for the other party.
Not if that term is unfair or unenforceable.0 -
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jjlandlord wrote: »How is such term either?
It's neither but they do not have to allow viewings under the right to quiet enjoyment. I'm sure you're aware of this.
It wouldn't be a material breach of contract anyhow...Thinking critically since 1996....0 -
somethingcorporate wrote: »It's neither but they do not have to allow viewings under the right to quiet enjoyment. I'm sure you're aware of this.
Quiet enjoyment does not mean being able to ignore the right of access agreed.
There is a lot of misunderstanding on what quiet enjoyment is.
Even if it is only a minor breach one can sue for compensation for loss.0 -
In this case there would be no loss to compensate for.
The OP wish's to remain a resident, the agency would have no reason to arrange viewing even if the OP doesn't wish to continue on a fixed term.
As for section 12.3, this thread could become a 50 page monster of back and forth arguing trying to get to the bottom of it. As far as I can tell, there's not been any court case which has made a definitive judgement on the matter, and until that happens it's all just speculation.
Although if there has been any such cases please do post them because I'm genuinely interested in the outcome, far more so than arguing about it.*Assuming you're in England or Wales.0
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