Letting Agency Renewal Fees

brisk

I self-manage a property in London but I used a letting agency to find my tenant. My contract with the letting agent states there is a fee to be paid for tenancy renewal (5% +VAT, periodic basis included). The tenant has contacted me well in advance of the expiration of the current tenancy term requesting to renew.!

If I draft a new Tenancy Agreement & deal directly with the tenant (avoiding the letting agent), can I avoid paying the renewal fees? Would it be likely they would actually take me to court?

elverson

Is it an Assured Shorthold Tenancy? If so then at the end of the fixed term, they can just keep paying you and the tenancy will become periodic by default. No need for any further paperwork unless you or they really want another fixed term.

harrys_dad

The letting agent will quite likely be charging the tenant a renewal fee too. Follow the advice above and just let it become periodic; save yourself and the tenant money.

brisk

thanks guys but as mentioned above, the terms and conditions clearly state the renewal fee applies also under a periodic basis.

harrys_dad

brisk wrote: »

thanks guys but as mentioned above, the terms and conditions clearly state the renewal fee applies also under a periodic basis.

Not quite sure what you mean by that. There is no new tenancy agreement, no new tenant, so how can there be a fee? What is it 5% + VAT of? Can you copy and paste the terms and conditions here?