Fee for renewing tenancy?

W.Ford

I have been renting my current house for just under 6 months, at the time we moved in we were told (by the letting agent) that the house was ours for a minimum of 6months and after 3 months they would contact us to see if we wanted to either extend it by another 6months of if we wanted to keep it on a monthly basis after the six months, i.e we had to give a months notice if we wanted to leave and the landlord had to do the same if he wanted us to leave. The letting agent did not contact us after 3 months but i did not worry.

Today I have received a a letter stating that if we would like to renew our tenancy for another six months then we are required to pay a fee of £60 to cover the cost of our 'extension document'. The alternative option on the form provided is to choose to vacate the property at the end of 6months.

This £60 charge was not mentioned at any point when we originally agreed to rent the property and I feel that it is a quite underhand and I am reluctant to be forced to pay it. Is this a fairly common practice as i have never come across it before and do I have grounds for a complaint?

guppy

Common with rip off agencies I'm afraid. No doubt they will then be going back to the LL and claiming a fee from him too.

Find out who your LL is, if you don't know and contact him direct. He may (or may not) be willing to cut the agency out of the deal and just deal with you direct from now on. Especially if you hint that you will move if you have to pay the fee, he can always pay it himself to avoid a void period.

Alternatively, just ignore the agency and keep on paying your rent while staying in the property. Did you receive a Section 21 Notice to Quit when you signed the original contract? If not, you will go on to a monthly tenancy once the 6 months is up. The LL has to give two months notice to evict you.

Good luck, personally I think these renewal fees are a complete scam.

W.Ford

No we didnt get a section 21 notice, a monthly tenancy would suit us fine as well so il do that. Thanks for the advice guppy.

guppy

Might be worth checking that's ok with the LL though rather than just ignoring the agency though...you don't want to upset the LL and then get your notice (unlikely).

dave76

When I moved from 6 month tenancy to rolling periodic tenancy a few months back I was told this:

As detailed in the tenancy agreement should the tenancy be renewed or revert to a periodic tenancy then a fee is payable of £80.00 plus £14.00 VAT. Total £94.00

But they never actually sent me an invoice or anything for it and have not asked for it to be paid since. I do wonder if they will try and take it out of my deposit when I move out soon but I will strongly oppose that. When I asked what it was for they tried to say it was for the admin involved (which as I understand it is nothing as the 6 month agreement automatically reverts to a periodic tenancy) and for the time in inspecting the flat - however I arranged to be in 3 times for a flat inspection and they never turned up, I should be charging them for my time!

When I move out they are going to charge me 50+VAT too - theives!

barnaby-bear

W.Ford wrote: »

I have been renting my current house for just under 6 months, at the time we moved in we were told (by the letting agent) that the house was ours for a minimum of 6months and after 3 months they would contact us to see if we wanted to either extend it by another 6months of if we wanted to keep it on a monthly basis after the six months, i.e we had to give a months notice if we wanted to leave and the landlord had to do the same if he wanted us to leave.

Almost the landlord has to give you TWO months, you only have to give him ONE.... no terms can override basic tenancy law like this.

clutton_2

i know that some letting agents fees seem high - but i do wonder why almost universally on this board some folks (mainly tenants) seem to assume that letting agents should work for nothing at certain times ? Reprinting off a new tenancy agreement, (and now on AST renewals depositing the deposit in the new schemes) and making phone calls to the tenant, or arranging to visit them at home or work to get the agreement signed - takes time and time is money in any job.

give us a break !!


i charge 10% - a mere £50 a month for one property - and some months all i do is collect the rent and pay the landlord - and yet during other months, most of that £50 is taken up with phone calls and postage and visits to tenants who are not in (when you have written in advance more than once)


letting agents earn their money - they most certainly do

svmitche

I've never NOT had to pay a fee to renew, although you should have been advised of the charges when you began your tenancy. The first agency I rented from were real scam merchants and charged £125 for each renewal - thankfully we moved out afer 6 months so were saved the fee. The next one charged £68.50 per renewal, but as we renewed on a yearly basis it was only due once per year. Our current agency charges £50 for a renewal, so we will have to pay it, but barring accident (touch wood!) we should be able to renew once per year as before.

I know letting agencies have to work for their money, but sometimes they do seem to be charging a great deal of money for old rope and don't seem to be doing their job particularly well. In my experience my last agency never earned their fee as they were total crap!

guppy

clutton wrote: »

i know that some letting agents fees seem high - but i do wonder why almost universally on this board some folks (mainly tenants) seem to assume that letting agents should work for nothing at certain times ?

Don't think you should work for nothing, clutton

But I'm afraid if I were a tenant in a landlord managed property, I'm afraid I wouldn't want you to do any more work once you've let me the property on a six month contract.

Once that's expired, I'd be quite happy to continue on a periodic tenancy without being disturbed. Paying fees and my my share of your 10% commission just isn't good moneysaving Sorry!

clutton_2

"" I'm afraid I wouldn't want you to do any more work"

then i would be breaking the law - landlords have to undertake a CORGI gas inspection annually - or face huge fines, landlords are responsible for repairs - or can face fines, landlords are responsible for their tenants behaviour and the peace of the neighbourhood - or face fines - landlords want to know that their property is being looked after so need inspections of their property.

these are all things that both landlords and agents have to do by law

its not about "moneysaving" its about complying with the law.

franklee

clutton wrote: »

i know that some letting agents fees seem high - but i do wonder why almost universally on this board some folks (mainly tenants) seem to assume that letting agents should work for nothing at certain times ?

The reason being that the charge was not mentioned upfront:

W.Ford wrote: »

This £60 charge was not mentioned at any point when we originally agreed to rent the property and I feel that it is a quite underhand and I am reluctant to be forced to pay it.

If the agent wished to charge such fees then they need to say so in writing before the contract is signed. Agents cannot just make up extra fees after the event.

clutton wrote: »

Reprinting off a new tenancy agreement, (and now on AST renewals depositing the deposit in the new schemes) and making phone calls to the tenant, or arranging to visit them at home or work to get the agreement signed - takes time and time is money in any job.

For which the fees need to be declared to the tenant whilst they are still free to walk away, otherwise the tenant will think these fees come out of the 12% plus management charge that the agent charges the landlord. The agent I use charges the landlord not the tenant for these services, I've never had to pay them directly.

clutton wrote: »

give us a break !!

Maybe you missed the bit where the OP explains the fee was not mentioned at any point when he originally agreed to rent the property? I do not see any "break" should be allowed for inventing fees out of thin air after the customer has signed. Clearly this would not be tolerated in any other business so why should tenants put up with it? (PS You now owe me five pounds for having answered your post ).

clutton wrote: »

i charge 10% - a mere £50 a month for one property - and some months all i do is collect the rent and pay the landlord - and yet during other months, most of that £50 is taken up with phone calls and postage and visits to tenants who are not in (when you have written in advance more than once)

I suspect this charge is made to the landlord? I've never heard of a tenant paying 10% a month

W.Ford, write to the agent explain that as the fee was not declared up front then you will not be paying it. See if the agent is a member of ARLA or any other body and report them.