PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
The Forum is currently experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

(not) renewing AST - advice needed

2

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If you are uncertain about wanting to stay a full 12 months, don't sign a 12 month contract without Break Clause.

    And don't rely on a vague verbal asurance that the LL will accept 2 months notice - it's the written contract that will be relied on when the time comes I guarantee!

    Going periodic is a gamble. There's a good chance (85%? though I don't know the landlord) that nothing will happen and you'll be ablt to stay as long as you want. Evicting you would cost money. Having a month or two with no rent costs money. Advertising for a new tenant costs money.

    But if the LL has signed such an absurd contract with his agent, he might conclude the extra agents costs make eviction cheaper. Though of course the reason the agent charges this (if it's true) is that they (agent) don't get to charge you and the LL the renewal fee, so the LL is also saving that, just as you are.

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?
  • mnorthern

    Tell us the final date on your current 12 month contract, then we'll know what to advise.

    it's the first week of Feb actually
  • G_M wrote: »
    If you are uncertain about wanting to stay a full 12 months, don't sign a 12 month contract without Break Clause.

    And don't rely on a vague verbal asurance that the LL will accept 2 months notice - it's the written contract that will be relied on when the time comes I guarantee!

    Going periodic is a gamble. There's a good chance (85%? though I don't know the landlord) that nothing will happen and you'll be ablt to stay as long as you want. Evicting you would cost money. Having a month or two with no rent costs money. Advertising for a new tenant costs money.

    But if the LL has signed such an absurd contract with his agent, he might conclude the extra agents costs make eviction cheaper. Though of course the reason the agent charges this (if it's true) is that they (agent) don't get to charge you and the LL the renewal fee, so the LL is also saving that, just as you are.

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    what you wrote made total sense, i actually went through a similar situation last year, when i didn't renew at first, and let it lapse in February, where I continued as a periodic tenant up to late May - which is when I started being harassed with hourly text messages and phone calls and emails from both agents and LL, so finally decided to sign the agreement, which they backdated so it appears it was renewed on time (but never gave them the cheque for the renewal fee). I returned the agreement together with a leaflet I found on the internet issued by the OFT saying that forcing someone to renew their agreement against their will is very naughty indeed, and explaining the renewal fee would be unenforceable (after talking to a lawyer friend).

    I really hoped that the situation wouldn't repeat itself this year but it did. So I do think you're right saying the odds are 85% that I will not be kicked out, but I will most likely be harassed again. Which is still very stressful and undesirable.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    mnorthern wrote: »
    The Landlord says that if he lets my agreement lapse into periodic, he will have to pay the EA every month a penalty = equal to rent amount. Same applies if he stops using their services and wants to retain me.

    It's possible that your landlord genuinely believes that - but even if he does, it's also possible that he's wrong.

    I once had a landlord whose letting agent told him it was impossible to put the rent up unless a new fixed term was agreed at the same time. They also told him both landlords and tenants were legally required to pay an annual fee for "executing the contractual extension deed". I put him straight! He ended up sacking the agents, they threatened to sue him for all sorts of things (but never did), and I got several years' worth of periodic tenancy out of it.

    Definitely talk to your landlord. But whatever you do, don't sign a 12 month contract unless you're prepared to pay rent for 12 months.
  • mnorthern
    mnorthern Posts: 26 Forumite
    edited 12 January 2016 at 2:55AM
    The LL is not a stupid guy but I think he did sign a really stupid agreement with the agents, maybe didn't read the small print, and I believe that this agreement is totally unfair for both him, and extremely unfair on me because my legal rights are essentially being taken away ( the tenancy can practically never lapse into periodic ). This is something that he could protest if he wanted to, I have seen these sort of clauses flagged up by the OFT, but he seems uninterested in pursuing that route. I guess there's no incentive for him to do so.

    That, or I'm being lied to by both the EA and the LL who just want 12-month security at any cost.
  • I am sorry you are in this situation. I had similiar, in that my LL (no agent involved) insisted on me signing two one year and one two year tenancy agreements. He was very clear that if I didn't I'd be evicted. The council told me that if I didn't sign and he evicted me, I'd be regarded as making myself voluntarily homeless as 'every LL had a right to a signed agreement. After the first year, I knew he wasn't going to do repairs and what I was in for, so wanted a periodic tenancy so if I did find a way out (I didn't), I wouldn't be (for example) tied in forever to the property.

    But its a situation I didn't solve until I was finally able to move into the emergency accommodation I am in now (and that's another story lol). You won't be able to do this if single.

    I agree that tenants have little protection. I didn't find any until he finally said he wanted to sell and evict me. Even then he tried to get bailiffs round before the Possession Order was up (and I didn't owe any rent at all).
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    edited 12 January 2016 at 10:42AM
    Another poster recently asked me why I had such a bee in my bonnet about landlords using letting agents. Well this is why. There are landlords out there who are pretty clueless and somehow think that by using a letting agency everything will be hunky dory. However, since the landlord is clueless (ignorant) then they have no idea how to select the right letting agency or understand what they're agreeing to.

    OP, your tenancy can become periodic. It's statutory law and that your landlord's hard cheese if it costs him more. He's the one who signed the co tract with the letting agency after all.

    I also find it disgraceful that your fixed term was back dated like that. Cowboys (or cowgirls if I'm being PC about it) yee ha!

    Edit: Although the landlord may or may not takes steps to evict if you choose the SPT route. So the question is, are you feeling lucky?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Not really relevant to the OP, but for interest:


    * Letting agents: how should a landlord select or sack?
  • mrginge
    mrginge Posts: 4,843 Forumite
    Pixie5740 wrote: »
    Another poster recently asked me why I had such a bee in my bonnet about landlords using letting agents. Well this is why. There are landlords out there who are pretty clueless and somehow think that by using a letting agency everything will be hunky dory. However, since the landlord is clueless (ignorant) then they have no idea how to select the right letting agency or understand what they're agreeing to.

    Hi pixie,

    Have you considered that maybe the LL may know exactly what they're doing, or are you just assuming that they are 'clueless' based on the tiny amount of information provided by the OP and your own inherent bias?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    mrginge wrote: »
    Hi pixie,

    Have you considered that maybe the LL may know exactly what they're doing, or are you just assuming that they are 'clueless' based on the tiny amount of information provided by the OP and your own inherent bias?

    Would a landlord who knew what he/she was doing sign a contract with a letting agency that would increase the fees if a tenancy became periodic? This type of contract would mean that tenants had to pay renewal fees every year, or if they choose to leave the landlord would end up paying more tenant finder fees. Would you sign up to a contract like this mrginge?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.5K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.3K Spending & Discounts
  • 243.5K Work, Benefits & Business
  • 598.2K Mortgages, Homes & Bills
  • 176.7K Life & Family
  • 256.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.