Tenancy Renewal Fees and Moving to Periodic Tenancy

Twillyson

Hi everyone,

I'm looking for some advice regarding renewal fees and periodic tenancy. My girlfriend and I have been privately renting a property for the past year and the fixed term contract ends on 17.02.15.
I've recently been sent a letter from the letting agents saying that the tenancy renewal fee of £125 is due by 17.01.15, and that the rent will increase by a further £25pcm.

This is our first time renting and to me that fee seemed very steep and is not a payment I'll be rushing to make, so I was hoping to move to a periodic tenancy in order to waive the fee and give us some more flexibility. I presumed the letting agents have probably given the landlord a renewal fee too, so it was my intention to contact the landlord and see if he was okay about moving to periodic (whilst assuring him that I have no intentions to leave in the next year or so).
However, the landlord's contact details aren't in my contract as the letting agent is acting on their behalf, and when I called the letting agent to request the landlord's details, she said she wasn't able to provide them for this reason.

I therefore explained to her that I would not like to pay the renewal fee and instead move to a periodic agreement, but she said she didn't think the landlord would agree to this, as he would want the security of another fixed term contract. She agreed to contact the landlord and ask the question but I know she'll come back to me to say this isn't an option (as they don't gain from this situation).

I know I'm legally allowed to let the contract run into periodic so long as I continue paying rent, but I don't want to then receive our 2 month's notice period from the landlord as we're very happy there and don't want to move.

What options do I have, other than paying the £125 on top of a rent increase?
Any advice would be really appreciated!

stator

Is your tenancy agreement between you and the agent, or you and the landlord?

If it's between you and the landlord make a written request for the landlords details. Don't do anything over the phone, agents lie over the phone.

Otherwise just ignore them and allow it to become a periodic. Pay the increased rent if they gave you proper notice.

If you don't want to take the risk of getting 2 months notice (it's a small risk) then you have to pay.

Pixie5740

Twillyson wrote: »

This is our first time renting and to me that fee seemed very steep and is not a payment I'll be rushing to make, so I was hoping to move to a periodic tenancy in order to waive the fee and give us some more flexibility. I presumed the letting agents have probably given the landlord a renewal fee too, so it was my intention to contact the landlord and see if he was okay about moving to periodic (whilst assuring him that I have no intentions to leave in the next year or so) .

Fair assumption that the LA will also be charging the LL. I would necessarily contact the LL though unless I was issued with a Section 21 (check that you haven't already been issued one). I would just let the tenancy become periodic and start paying the £25 rent increase.

Twillyson wrote: »

However, the landlord's contact details aren't in my contract as the letting agent is acting on their behalf, and when I called the letting agent to request the landlord's details, she said she wasn't able to provide them for this reason.

The LA is talking rubbish (quel surprise) and you are legally entitled to your LL's contact details.

Twillyson wrote: »

I know I'm legally allowed to let the contract run into periodic so long as I continue paying rent, but I don't want to then receive our 2 month's notice period from the landlord as we're very happy there and don't want to move.

What options do I have, other than paying the £125 on top of a rent increase?
Any advice would be really appreciated!

If you do get issued with a Section 21 because the LL wants you to sign another fixed term (get this from the horse's mouth) and you really want to stay there then you'll just need to suck up the £125 fees.

G_M

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?)

Twillyson

stator wrote: »

Is your tenancy agreement between you and the agent, or you and the landlord?

If it's between you and the landlord make a written request for the landlords details. Don't do anything over the phone, agents lie over the phone.

Otherwise just ignore them and allow it to become a periodic. Pay the increased rent if they gave you proper notice.

If you don't want to take the risk of getting 2 months notice (it's a small risk) then you have to pay.

The agreement is between us and the landlord. The contract states:
The landlord: (Management Company Name) C/O (The Agent & full address)

Is the risk of getting handed a Section 21 from LL really a small risk? My inclincation is to let tenancy become periodic but I really can't afford for them to call my bluff and give me notice.

As a first step I'll request the landlord's details in writing. Is there any situation whereby the agent wouldn't be allowed to provide these details?

G_M

Twillyson wrote: »

As a first step I'll request the landlord's details in writing. Is there any situation whereby the agent wouldn't be allowed to provide these details?

No

Landlord & Tenant Act 1985

Quimoi

Twillyson wrote: »

Is the risk of getting handed a Section 21 from LL really a small risk? My inclincation is to let tenancy become periodic but I really can't afford for them to call my bluff and give me notice.

Frankly, if your landlord is lucky enough to have a tenant who doesn't cause problems, pays their rent on time and is willing to accept an annual rent increase then they would be mad to issue a s21 over £125.

FWIW - I would agree that the risk is small.

stator

Twillyson wrote: »

The agreement is between us and the landlord. The contract states:
The landlord: (Management Company Name) C/O (The Agent & full address)

Is the risk of getting handed a Section 21 from LL really a small risk? My inclincation is to let tenancy become periodic but I really can't afford for them to call my bluff and give me notice.

As a first step I'll request the landlord's details in writing. Is there any situation whereby the agent wouldn't be allowed to provide these details?

I was in the same position as you, although the fee they wanted was smaller. Every 6 months they demanded £50. To begin with I paid them because I couldn't afford to move. After they did this a few times and tried to raise the fee I just ignored them and let it become a SPT. This was a certain rental agency who's name has something to do with trees. After it become a SPT they left me alone and I haven't been evicted.

Unfortunately there is no way of knowing for sure, so it's a risk you have to judge for yourself. Best bet is to contact the landlord, they usually don't want to pay money just for a new AST but sometimes they may have a reason for wanting one.

Either way don't phone them, send all correspondence by post. People don't lie so easily when it's written down.

SerialRenter

I'm currently 4 months into this situation.

I let the tenancy transition to a SPT and have not paid the increase.
As of yet i've not been served a S13 or S21.
However the letting agents have been unrelentingly pestering me at every given opportunity arguing that "We want a fixed term to ensure we have assurance you're not going to leave".

Evicting to ensure that someone doesn't leave seems a little counterproductive to me. Which is probably why i've not been given notice.

If you can cope with a bit of stress (being pestered) and are willing to take a bit of a risk, i'd say go for it. But keep it amenable, try not to get into an argument!

jjlandlord

SerialRenter wrote: »

However the letting agents have been unrelentingly pestering me at every given opportunity arguing that "We want a fixed term to ensure we [STRIKE]have assurance you're not going to leave[/STRIKE] get paid".

Fixed that for you

penguine

Most likely the agent will be charging the landlord to renew the contract too, not just you, so the landlord may be happy to have you go on to periodic and save themselves the fees.

We moved into rented in 2011 and rented out our own flat. When the first year was up we asked our landlords if we could go on to periodic and also asked our tenants if they wanted to go to periodic. This saved us several hundred pounds, not just that year but when the second year was up too.