Letting Agency Woes

catflap11

Hi All

I’m currently renting a flat through an agency, it was originally on a 6 month AST to run till September 2017, however I was contact back in July by the letting agents to offer me a new fixed term contract to commence when the new contract expired. At this point I asked if I could move onto a rolling periodic tenancy to which they agreed.

Moving on several months and no further contact, I handed my notice in to move out at which point I was told that there was a £66 contract renewal fee outstanding for the move to periodic tenancy. Obviously I queried this, as my understanding is that once an AST ends with no new fixed term, it automatically rolls over into a periodic tenancy.

I was subsequently sent a photocopy of the page from the original tenancy agreement, and it does state that there is an “admin fee” of £66 for “negotiating” with the landlord a switch to periodic tenancy. My concern is if I argue the morality of this charge they will make life difficult when it comes to returning my deposit.

My question is, do I suck it up and pay this charge or do I fight it? and do I have a leg to stand on since it is listed in the original contract?

Thanks

Comms69

Well you need to be arguing the legality of the charge, not the morality.


I'd personally just ignore them, your deposit is protected so should be safe

catflap11

Ok thanks, so even though this charge is listed in my original contract, it would still be worth querying?

geoffken

Certainly morally although you would NOT win legally as you signed to T & C when you started tenancy.
Sorry but you will not win this one although you could appeal to their better nature !!!!???? as they had no costs other than a phone call.

Comms69

geoffken wrote: »

Certainly morally although you would NOT win legally as you signed to T & C when you started tenancy.
Sorry but you will not win this one although you could appeal to their better nature !!!!???? as they had no costs other than a phone call.

Given that a tenancy becomes periodic by law, I'd suggest the OP has every chance of 'winning'. But hey, what do I know

FBaby

As a minimum, you could query, politely, as to the reason for the fees since from your understanding, there is nothing for them to do or negotiate.

catflap11

Thanks, I have raised this with them and I got their stock answer that it was in the original agreement signed, although they did have the decency to sound a little sheepish when I pointed out that they were in effect, charging £66 to make a phone call to the landlord.

Oh well, as I am buying my own place this is the last time I will have to deal with Letting Agencies as a tenant! thanks for the help.

Pixie5740

Ask the letting agent exactly what they negotiated for £66 given that a Statutory Periodic Tenancy is statutory law. There is nothing to negotiate.

pmlindyloo

These are your choices.

1. Pay the fee and move on.
2. Do not pay the fee and let them take you to court.

The problem is that you have signed a contract that had this clause in it and therefore have no defence that you did not know about it.

A judge may find that this is an unfair term in the contract but they may not. (Googling suggests that it could go either way)

First you could raise a written complaint to the letting agent (how to do so should be on their website).

Second you could report them to their association (should be on their website)

The above complaints should defer the matter for a while and may even see the fee dismissed.

Once you have tried these routes then you can make the decision whether you pay or not.

Is this a national letting agent? If so go straight to the Head Office with your complaint.

In the light of the government consultations about this I would be inclined to make a challenge.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/656211/Govt_response_to_consultation_on_banning_letting_fees.pdf

Good luck!

catflap11

Great, Thanks very much for everyones input. I shall post an update once I have any more news.

Fosterdog

Did they agree to the periodic agreement during your single phone call to them? If they did then there was no negotiation on their part, you simply called them to inform them that you didn’t wish to sign up for another fixed term to which they agreed without even contacting the landlord for their input. Even though you signed the original argreement they would have a tough time justifying charging £66 for doing nothing, it was your statutory right to go onto a periodic tenancy.