Change of Tenancy Fee?

rubygloommel

Hello everyone, I've made an account so I can ask for some advice RE the new fees for rentals in England please.

The current contract for my flat is a joint one with one other person, it runs out next month and I am finding someone else to come live in the flat once the current contract has expired.

The letting agent has said they want to charge £50 for a change of tenancy fee. Originally they claimed it was a reference fee, but I pointed out that wasn't allowed under the new laws. I can see that a 'change in tenancy' fee of up to £50 is still legal, but is that was this is? From what I understand, a fee of that kind refers to changes in existing contracts (such as if I wanted to change flatmates before the current one finishes next month), not to *new* contracts - even if that new contract has one of the existing tenants on it from the current contract?

There's no mention of renewal fees or anything in my current contract, which itself was made and signed on the 19th of June and so presumably covered by the law changes too? The rent is being increased slightly which I have agreed to on condition of some maintenance being done (including sorting a mould problem in one bedroom).

Are the letting agents correct in charging the fee?

G_M

How is the new occupant being dealt with? Either

1) your current tenancy will be ended, your deposit returned, and a brand new tenancy created in the new joint names, with a new deposit being paid and protected, or

2) the existing tenancy will be 'assigned', with the new tenant taking over from the departing tenant, ideally via a Deed of Assignment.

If 2) above, clearly it's a change of tenancy and a fee ca be charged.


The Gov guidance to landlords says:

Q. What do you mean by a change to a tenancy?

A change to a tenancy is any reasonable request to alter a tenancy agreement. This could be making changes to the tenancy agreement to enable:

•pets to be kept in the property
•a change of sharer in a joint tenancy
•permission to sub-let
•a business to be run from the property•or any other amendment which alters the obligations of the agreement

rubygloommel

Hi, thanks for the reply. I believe the situation is more akin to the second scenario, although it's a bit of a mix. The current tenancy ends in Nov and the new person won't move in until after that date - they won't be put on the existing contract that's expiring. A new contract will be made and signed for the new dates, although from previous experience the letting agency will ask us to sort the deposit between ourselves rather than refunding and asking us to pay back in. So is this more of a scenario 2?

I've changed the tenancy a few times previously and a new contract has always been drawn up every time, we've never had anything called a Deed of Assignment I don't think.

G_M

If a new tenancy is being created, then the LL should

* deal with the deposit, and protect it again with the new tenants names
* provide a gas report (if not, no S21 can be served)
* provide and EPC (as above)
* do 'Right To Rent' checks
* provide the gov leaflet
* optionally do a check-in inventory (the previosu one will be invalid and useless to the LL)
All the above is standard stuff legally required for any new tenancy.

One issue with the tenants passing the deposit between themselves is that it means the incoming tenant has never paid a deposit to the landlord. Therefore the LL has no obligation to return it to the tenant when they leave. Legally, the tenat would have to chase the departed tenant, to whom he paid his deposit, for its return - highy unlikely to be successful!

The new tenant should insist on paying his deposit to the LL (or LL's agent), and get a receipt.


So if the new tenancy is due to start some (days? weeks?) after the fixed term of the old tenancy has ended, what happens in between?

A 'Periodic tenancy' will be created in the joint names of the two original joint tenants (the fact that one has left does not end his liability). That will only end if one or other joint tenant serves proper notice, or, more likely in this case, if an Early Surrender is agreed by both joint tenants with the landlord.

rubygloommel

Okay so what they usually do is do the references and right to rent checks and make up a new contract with the gas report and everything. We've only ever had the original inventory although they do a check of the flat whenever my flatmate has changed. So in that case, does it indeed count as a new tenancy and not a *change* of tenancy with respect to the fee?

I'll raise the deposit issue with them as you're probably right. They're likely to make a fuss but your points are valid about eventually getting the deposit back.

The current tenancy is due to finish Nov 25th, with the new one to start immediately on the 26th.

G_M

rubygloommel wrote: »

Okay so what they usually do is do the references and right to rent checks and make up a new contract with the gas report and everything. We've only ever had the original inventory although they do a check of the flat whenever my flatmate has changed. So in that case, does it indeed count as a new tenancy and not a *change* of tenancy with respect to the fee?

Clearly it's a new tenancy.


You or the outgoing tenant should request the return of your deposit for the tenancy that is ending. If that does not work, put in a request for its return direct from the deposit scheme (see their website for how to request this).


If the inventory pre-dates the creation of the tenancy (ie it was done several tenant-changes ago, with a new tenancy each time) then it will never be accepted by a court or deposit scheme arbitrator, which means the LL cannot rely on it to prove damage or dirt in support of any claim he makes from your deposit.

rubygloommel

Okay, thank you very much for the help. I was only confused because they were trying to claim the fee for the 'change in tenancy,' but it didn't sound right to me. I'll speak to them about the deposit too once we're at that stage.

One more quick question - I double-checked the date of the current tenancy and it was all signed and dated on the 19th of June (2019). We'd been working to get it sorted for quite a bit longer than that but that's the date when everything was completed and signed off. Should we not have been charged a fee for that tenancy as it came after the 1st of June? We were charged £120 when they made it up and did references, etc.

G_M

If the previous tenancy agreement specified a £120 fee for renewal, then that can be charged up till June 2020.


If it did not, then the £120 fee was illegal since it was after 1st June 2019.

rubygloommel

Okay, thanks again.