Renewal tenancy fee

Smi1er

G_M wrote: »

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

^^This

LL doesn't do periodic tenancy?

Tell them that's what you're moving to and continue paying the rent. Why would a LL evict a paying tenant??

danlewi2

Should the renewal fee be stated in the previous tenancy agreement? or can they just change it as they please?

saajan_12

danlewi2 wrote: »

Should the renewal fee be stated in the previous tenancy agreement? or can they just change it as they please?

No, you're negotiating a new agreement so either party can demand whatever conditions they like. You could demand red velvet cake as your fee for signing. The LL/LA could demand £100000 as a fee for signing. Or whatever.

If both don't agree and nothing is signed, you automatically move to a periodic tenancy.

danlewi2

Many thanks - I think they forgot to charge us last year - but think we will just pay up - as want the security of the year.

macman

Point out to your LL that it will cost him considerably more than £125 to find a new tenant should you give notice, or if you refuse to sign a new tenancy agreement and he then issues an S21.

System

Pixie5740 wrote: »

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?

Sorry yes wrong turn of phrase and again you are correct what sane landlord would evict a tenant because they wont sign a new fixed term but it happens. I was just trying to bring to the fore that sometimes it is better to just sign a new agreement and avoid any hassle from the not so good landlords and agents of which there are a few. Sometimes good advice doesn't have to be you can just do it because the law says you can, there is always a bigger picture to be had

G_M

If you want long term security, why not ask for a 2, or even 3, year contract?


You get 2/3 years security.
Landlord knows you can't leave so gets rent security.
No need to pay renewal fee next year.


The agent of course will hate this idea.........

danlewi2

was considering that - are hoping to purchase in the future as well so do want to leave our options open to a degree. Would this not be one of the fees that will be banned as part of the bill going through parliament? Assuming though our rent increase will be more sizeable next year so the % fee take by the agent covers the shortfall of not being able to charge it?

G_M

danlewi2 wrote: »

was considering that - are hoping to purchase in the future as well so do want to leave our options open to a degree. Would this not be one of the fees that will be banned as part of the bill going through parliament? Assuming though our rent increase will be more sizeable next year so the % fee take by the agent covers the shortfall of not being able to charge it?

If the renewal fee is £100, and assuming the agent takes 10% of rent, the rent would have to increase by £1000 over the year to re-coup the agent's lost renewal fee.


That's £83 pm.

danlewi2

fair point! thanks for your help and advice