Letting agent charges

yksi

Yes I do - apologies there it was late!

ljcash

Thank you 😂

ljcash

So I’m coming up to renew my tenancy agreement and the agent holds £3000 as a deposit as I have no guarantor . I still don’t have a guarantor but have always paid my rent (last 7 years) and I said because of you law can I have majority of my deposit back (I expect them to keep 5 weeks rent £875 x 5 ) and he said no because you don’t have a guarantor . (I’d heard there was a cash holding scheme where they hold onto some of the money ) he said you can use it for last 3/4 months of your rental agreement for this new contract if you decide to move next year . Is this correct ? As I wanted some of my deposit back , needed it really due to lockdown and not having much work . Can anyone advise please ? 

anselld

If some of the money was described in the contract as rent in advance from the outset then it can continue to be retained.  However, if it was all security deposit (eg is the full amount protected in a scheme?) then the excess above 5 weeks must be returned on contract renewal.

ljcash

It was just a deposit - I messaged him yesterday and he said he needs to keep it to cover himself or I need a guarantor : homeowner who is working 

greatcrested

ljcash said:

Hi
can anyone tell me what letting agents can charge for , I’m coming up to signing a new years contract (I’ve been here for 7 years) and I think I’m right in saying I shouldn’t be charged anything for new agreement . I also want some of my deposit back (I paid 3k - as I didn’t have a guarantor and my rent is £875 a month now) can anyone advise me on what I should get and also if I do get some of my deposit back are they allowed to charge me a fee of putting it in a rent deposit scheme - thanks in advance 

So I’m coming up to renew my tenancy agreement and the agent holds £3000 as a deposit as I have no guarantor . I still don’t have a guarantor but have always paid my rent (last 7 years) and I said because of you law can I have majority of my deposit back (I expect them to keep 5 weeks rent £875 x 5 ) and he said no because you don’t have a guarantor . (I’d heard there was a cash holding scheme where they hold onto some of the money ) he said you can use it for last 3/4 months of your rental agreement for this new contract if you decide to move next year . Is this correct ? As I wanted some of my deposit back , needed it really due to lockdown and not having much work . Can anyone advise please ? 

There are 2 options:

1) based on the current contract, the £3000 is a deposit. With a monthly rent of £875, the LL can only keep a deposit of £4375  (5 times) and must return the balance of £625. If he does not, use the process in the link I provided earlier.

2) if he offers you a new contract on different terms, which specifies that part of the £3k (eg £625) is 'advance rent', then you will not need to pay that amount of rent in the final month ( ie you pay 875 - 625 =£250). I don't see how this helps the LL though!

What he cannot do though is call it a deposit and treat it as advance rent at the same time - it is either one, or the other, as specified in the contract.

Furthermore,

3) if he does offer a new contract, defining the £3K differently, you are no obligation to agree. You can simply remain under the existing terms but on a periodic basis (month by month), and reclaim the £625 as described above.

4) he cannot now demand a guarantor. You have an existing tenancy so see 3) above.

5) yes, he can charge a 'reasonable amount' to change the terms of the tenancy but

a) only if you request it and

b) only if you agree to the change (see 3) above!

Tenant Fees Act 2019: guidance for tenants (updated July 2019)

See also
Post 4: 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?

ljcash

Thank you I appreciate it - I’m going to office tomorrow and I’m thinking is he going to charge me £125 fee I get charged every year when I renew .... I thought he couldn’t as this was now stopped ? 

anselld

Not sure about GC's figures ... monthly rent of £875 is £201.92 per week so five weeks is £1009.62, so they should be returning the best part of £2000.
They cannot charge a renewal fee.
They can charge reasonable fee for contract changes required by the Tenant but this should not apply since you do not require any changes.
They can only retain the full £3000 if they do not renew and continue on periodic.

ljcash

Yes I thought that about figures thank you 

greatcrested

Yeah my figures are rubbish! I based them on 5 months rent instead of 5 weeks - don't ask me why! Sorry....

Ignore my figures, but the principle is the same.

As for the £125 fee - that has been answered at least twice, and you can read the government information in the link provided too.