Renewal tenancy fee

Quicklite

Hello guys,

Just have a query re: an unexpected tenancy renewal fee. Have rented a flat since early last year. Paid £320 "application fee" initially, to the estate agent, got a 6 month AST. Renewed every six months since (twice now, fixed term, free of renewal fees each time). Bills always paid on time. The landlord has recently inspected the flat before the next renewal, we were agreeable to moving forward with another 6 months (LL doesn't like periodic tenancy / and I prefer flexibility, hence why 6 month each time).

The estate agent drafted the paperwork. However, this time asking for a £105 renewal fee each time going forward. It wasn't mentioned at all until now. Spoke briefly with someone at the estate agent, they've suggested it's a new per renewal cost.

If one may speak frankly, was a bit annoyed at the new fee, more annoyed it wasn't given any heads-up. The cost obviously incentivises a longer AST, but I'm not ready to sign 12 months. When you get these new fees as a tenant - there isn't much you can do, right? other than politely asking the estates agency to perhaps make the 105 a yearly cost instead of per renewal? (just cough-up the money / or move elsewhere?)

The first knee-jerk reaction was to move elsewhere (been wanting for a while now - not quite ready though), then one realises that the cost of doing so is higher / won't know the fees are better elsewhere / and perhaps the fees are getting phased out gradually anyway.

(Seems the Tennant Fee Bill is in the second reading stage / guess I'll probably have a mortgage by the time that comes in). https://services.parliament.uk/Bills/2017-19/tenantfees.html

danlewi2

I had an email from the letting agent regarding our renewal of our tenancy and they want £125 to renew it as well, we renewed last year and I don't recall paying it then but they also screwed up the tenancy paperwork several times. I queried what the fee covered and they advised the emails/phone calls and sending out of the paperwork. I also mentioned the ban on letting fees and there response was well that's not been approved yet so the fee still stands, so I guess we have to suck it up and pay it.

CM66

Assuming the letting agents and landlord are different, i would contact the landlord directly about it.


Chances are its the letting agents adding the fee, and the landlord has no idea about it!

Grezz24

id suggest that while you dont like periodic tenancy agreements, that you move to it anyway. There is no fee that way and you still have notice periods to protect you where required.

G_M

Either

* pay the fee or
* speak to the landlord or
* negotiate a lower fee with the agent or
* move to a periodic tenancy and avoid the fee




* 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?

Quicklite

Thanks, guys - this LL does not do periodic tenancy. Spoke to him - he suggests he's paying the same cost to the estate's agent people (pretty sure they're not suppose to charge for the same things / alas do not have the effort to look further). Estates people are firm on this. Will cough up on this, call it a life's lesson, and speed up have a flat.

Times like this when the estate agent has decided to put up what is the seemingly arbitrary fee to the consumer (they probably have their biz reasons I'm sure) - I can't wait for the Tennant Fee Bill to become legislation. It's not that simplistic though I know, as the rent will probably partially absorb those fees.

Blondetotty

The landlord may not like periodic tenancies but that's neither here nor there. Do nothing, it will roll over onto one automatically.

Pixie5740

Quicklite wrote: »

Thanks, guys - this LL does not do periodic tenancy. Spoke to him - he suggests he's paying the same cost to the estate's agent people (pretty sure they're not suppose to charge for the same things / alas do not have the effort to look further). Estates people are firm on this. Will cough up on this, call it a life's lesson, and speed up have a flat.

Times like this when the estate agent has decided to put up what is the seemingly arbitrary fee to the consumer (they probably have their biz reasons I'm sure) - I can't wait for the Tennant Fee Bill to become legislation. It's not that simplistic though I know, as the rent will probably partially absorb those fees.

Have you read the information in the link G_M kindly provided which can also be found in all the other many, many threads about tenancy renewal fees on the forum?

Contractual Periodic Tenancy - the provision for it would already be in your tenancy agreement

or

Statutory Periodic Tenancy - it's statutory law!

System

There seems to be a lot of people asking about renewal fees that agents charge and the general advice is to "just go on to a periodic so no fee" or " just go periodic the landlord/agent cant make you sign for another fixed term" whilst this advice is technically right the agent or landlord can serve notice if they wished and this would cost the tenant a lot more than just a renewal fee.


With the Tenant Fee ban due to take effect from April 19 agents and Landlords may become more accommodation when it comes to renewal. Only time will tell

Pixie5740

Simonr66 wrote: »

There seems to be a lot of people asking about renewal fees that agents charge and the general advice is to "just go on to a periodic so no fee" or " just go periodic the landlord/agent cant make you sign for another fixed term" whilst this advice is technically right the agent or landlord can serve notice if they wished and this would cost the tenant a lot more than just a renewal fee.


With the Tenant Fee ban due to take effect from April 19 agents and Landlords may become more accommodation when it comes to renewal. Only time will tell

It's not "technically right" it is legally correct.

You are correct that the landlord or the letting agent could serve notice to end the periodic tenancy but a Section 21 notice does not end the tenancy, that can only be done by the tenant or a court. The letting agent can't take the tenant to court but the landlord can so if it's the letting agent insisting on the renewal (which it often is....renewal fees....kerching!) and threatening a Section 21 let them go for it, they can't act on it. As for the landlord, would any sensible landlord get rid of a perfectly good, paying tenant because of a periodic tenancy? No they would not. Who would risk void periods and more tenant finder fees over a periodic tenancy?

ognum

All my tenants are now on automatic periodic terms. In the past I have had tenants who have requested a new fixed term agreement to give them security and this has been given at no cost.

All the agent has to do is change a date on a form, I won’t let mine charge and they actually don’t charge any tenants.

Move and find a decent LL.