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Tenancy check out fee payment promptly required 2.5 months before end of agreement.

Hi guys,

Essence: Landlord requires prompt payment of checkout out and renewal admin fees 2.5 months before the end of tenancy.

Whole story:

Last year me and my flatmate singed a 12 months fixed period AST agreement. It ends on 28th of August 2014. The landlord is a big lettings agency from Wood Green, London. Suddenly on 1st of May my landlord started asking us if we want to extend the agreement. It was 4 months before the end of current agreement. We didn't know so we just replied the truth: "We don't know yet if we want to sign new agreement". Later in the beggining of June landlord started bugging us again asking about extending the agreement. We made a decision that I will stay in the apartment and my flatmate won't. We informed the landlord. Then instantly the landlord send us invoices requiring "prompt" payment of renewal admin fee for me and check out admin fee for my flatmate. Landlord wants me to sign new AST agreement and pay new deposit as soon as possible. This is happening 2.5 months before the end of current agreement. A new deposit is required as legally the tenant will change, as the tenant was me and my flatmate, now I will be a single occupier. Requiring this payments 2.5 before the end of agreement is not fair for me. And I don't have money to pay this at the moment. Is this legal? I would like not to accept the invoice and tell landlord to wait till August.

Please help! Any advice is welcome. Thank you.
«13

Comments

  • thequant
    thequant Posts: 1,220 Forumite
    Hi guys,

    Essence: Landlord requires prompt payment of checkout out and renewal admin fees 2.5 months before the end of tenancy.

    Whole story:

    Last year me and my flatmate singed a 12 months fixed period AST agreement. It ends on 28th of August 2014. The landlord is a big lettings agency from Wood Green, London. Suddenly on 1st of May my landlord started asking us if we want to extend the agreement. It was 4 months before the end of current agreement. We didn't know so we just replied the truth: "We don't know yet if we want to sign new agreement". Later in the beggining of June landlord started bugging us again asking about extending the agreement. We made a decision that I will stay in the apartment and my flatmate won't. We informed the landlord. Then instantly the landlord send us invoices requiring "prompt" payment of renewal admin fee for me and check out admin fee for my flatmate. Landlord wants me to sign new AST agreement and pay new deposit as soon as possible. This is happening 2.5 months before the end of current agreement. A new deposit is required as legally the tenant will change, as the tenant was me and my flatmate, now I will be a single occupier. Requiring this payments 2.5 before the end of agreement is not fair for me. And I don't have money to pay this at the moment. Is this legal? I would like not to accept the invoice and tell landlord to wait till August.

    Please help! Any advice is welcome. Thank you.


    So basically LL wants a check out and check in fee for a place you are not going to be moving out of.


    Others are more qualified to give advice, so will leave to them.
  • thequant: The check out fee is for my flatmate, and renewal fee is for me. It is not fair, but it is legal. The issue is in the timing. I still have 2.5 months on current tenancy agreement and they want these fees to be paid already.
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are you sure Landlord is a letting agents ?
    Letting agents normally act as agents for a real Landlords dealing with all paperwork and managing of the property such as repairs etc
    Why do you need a to pay a second deposit ?
    The agent is only trying to tie you down to another 6/12 months contract or get the property back on the market and sign up new tenants
    This property is in London where the rental market is craxy
  • thequant
    thequant Posts: 1,220 Forumite
    thequant: The check out fee is for my flatmate, and renewal fee is for me. It is not fair, but it is legal. The issue is in the timing. I still have 2.5 months on current tenancy agreement and they want these fees to be paid already.


    Unless the timing is specified in your contract, He can issue all the invoices they want, you are under no obligation to pay them.
  • thequant wrote: »
    Unless the timing is specified in your contract, He can issue all the invoices they want, you are under no obligation to pay them.

    Thank you thequant. You say that I'm no obligation to pay the invoices. On what basis do you claim so? In the AST the admin fees are specified, but nothing about the timing is mentioned.
  • dimbo61 wrote: »
    Are you sure Landlord is a letting agents ?

    I've been told so when letting the apartment. But I'm not sure. Does it matter?
    dimbo61 wrote: »
    Why do you need a to pay a second deposit ?

    As the previous deposit is for me and my flatmate. New deposit will be only for me. They treat me like I'm moving out and moving in as a new tenant. They want to make new checks if I can afford the apartment!
  • thequant
    thequant Posts: 1,220 Forumite
    Thank you thequant. You say that I'm no obligation to pay the invoices. On what basis do you claim so? In the AST the admin fees are specified, but nothing about the timing is mentioned.


    If no timing is specified, then it comes down to what is reasonable as to when payment is due.


    In the event of a dispute a court will ultimately decide what is reasonable.


    Being invoiced for a check out which will not happen until 2.5 months time is not what I call reasonable.


    There is also the issue of "consideration", the consideration in this case is you pay for a check out, LL does a check out.


    Until the LL fulfils his consideration he has no power of enforcement for you not fulfilling your consideration
  • BobQ
    BobQ Posts: 11,181 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    edited 15 June 2014 at 6:04PM
    Hi guys,

    Essence: Landlord requires prompt payment of checkout out and renewal admin fees 2.5 months before the end of tenancy.

    Whole story:

    Last year me and my flatmate singed a 12 months fixed period AST agreement. It ends on 28th of August 2014. The landlord is a big lettings agency from Wood Green, London.

    Unlikely that the landlord is the letting agency. I assume the agency is acting for a landlord.
    Suddenly on 1st of May my landlord started asking us if we want to extend the agreement.

    When you say "suddenly", you mean you got a letter.

    I think you will find that it is normal practice for an agent to contact the landlord and the tenant about this time. The agent wants to know if he needs to find a new tenant and whether the landlord wants to keep letting. There is no immediate rush but it is helpful for all concerned to know what the likely position will be .
    Later in the beggining of June landlord started bugging us again asking about extending the agreement. We made a decision that I will stay in the apartment and my flatmate won't. We informed the landlord. Then instantly the landlord send us invoices requiring "prompt" payment of renewal admin fee for me and check out admin fee for my flatmate.

    Even on an AST the landlord needs to give you 2 months notice (assuming you are abiding by the agreement) so asking you if you want to sign a new agreement at this time seems sensible.

    That said there is no reason for you to do so. But you will then probably get two months notice to ensure that if you simply do nothing he is best placed to evict you in August. (or strictly to start proceedings if you have not moved out)
    Requiring this payments 2.5 before the end of agreement is not fair for me. And I don't have money to pay this at the moment. Is this legal? I would like not to accept the invoice and tell landlord to wait till August.

    Please help! Any advice is welcome. Thank you.

    I do not think you should have to pay the inventory fee until the inventory has been done in August unless your tenancy agreement states otherwise.

    Its entirely up to you if you sign the new tenancy agreement and when. Obviously the sooner you sign it, the sooner you will have continuity of living there and know you do not need to move. The later you sign it the more uncertainty that exists. Landlords like continuity of a good tenant, but when something unusual happens like one tenant wants to leave and one stay, it creates some additional risks.

    Maybe you just need to discuss it with the agent and explain when you are content to sign the new agreement?
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • thequant wrote: »
    If no timing is specified, then it comes down to what is reasonable as to when payment is due.


    In the event of a dispute a court will ultimately decide what is reasonable.


    Being invoiced for a check out which will not happen until 2.5 months time is not what I call reasonable.


    There is also the issue of "consideration", the consideration in this case is you pay for a check out, LL does a check out.


    Until the LL fulfils his consideration he has no power of enforcement for you not fulfilling your consideration

    Thank you thequant. Your answer is brilliant and I will quote it in an email reply to the lettings agency. Where can I read about the issue of "consideration"? I would like to know more about it.
  • BobQ wrote: »
    I think you will find that it is normal practice for an agent to contact the landlord and the tenant about this time. The agent wants to know if he needs to find a new tenant and whether the landlord wants to keep letting. There is no immediate rush but it is helpful for all concerned to know what the likely position will be

    Thank you BobQ. This is a first reply that is calming me down. You're right. There may have a need to know if I'm staying 2 months before the end of the agreement.
    BobQ wrote: »
    Even on an AST the landlord needs to give you 2 months notice (assuming you are abiding by the agreement) so asking you if you want to sign a new agreement at this time seems sensible.

    Ok, I did't know that they have to give me a notice.
    BobQ wrote: »
    I do not think you should have to pay the inventory fee until the inventory has been done in August unless your tenancy agreement states otherwise.

    I appreciate your opinion here. All the agreement states is:
    To pay the costs of the check-out inventory ... at the conclusion of the tenancy agreement in the sum of £85 + VAT
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