Lettings management - is it mandatory to renew an AST?

allygate

We have had a rental property for a long time that we handed over to a letting agent to manage from last year. The end of the tenancy is coming up and the agent asked what our intentions were. We told them that we are happy for the tenants to continue at the same rent under a periodic tenancy.

The agent then invoiced us for £300 for "Tenancy agreement fee". I talked to the tenant and both them and us are happy to continue on a periodic tenancy without signing a new contract.

When I talked to the agent they said that there has to be a 12 month AST in place and that the fee for that is £300, asked me to refer to the terms I signed.

These are the relevant sections in the ToB talking about renewal -

Surely the agent can't force a new agreement can they? It's just a bit confusing.

I would appreciate your thoughts!

tom9980

You told them to let the contract roll over to periodic, they did nothing more than contact you. I would sack them frankly, they clearly wish to milk you and the tenant for every penny.

grumiofoundation

You are correct that they (that is to say you as they are your agent) cannot force a new tenancy agreement upon the tenants.

Ask them what legislation requires a 12-month AST to be in place. 

In the event a new tenancy is signed you will likely have to pay fees. However if either you, or the tenant, does not agree then this new agreement cannot be signed, so don't think you would need to pay - although agents may try and convince you a new agreement is needed (even for a periodic tenancy), which they can then charge you for (even though a new agreement is not needed). 

allygate

tom9980 said:

You told them to let the contract roll over to periodic, they did nothing more than contact you. I would sack them frankly, they clearly wish to milk you and the tenant for every penny.

I wish I could! They have been completely useless since March. Furloughed (or laid off) lots of customer service staff, all phones go to voicemail, emails take days to get answered. Absolutely useless. The only thing that moves them to action is a formal complaint, it's a real pain. The earliest I can end the contract is at 24 months I've marked the date!

allygate

grumiofoundation said:

You are correct that they (that is to say you as they are your agent) cannot force a new tenancy agreement upon the tenants.
Ask them what legislation requires a 12-month AST to be in place. 
In the event a new tenancy is signed you will likely have to pay fees. However if either you, or the tenant, does not agree then this new agreement cannot be signed, so don't think you would need to pay - although agents may try and convince you a new agreement is needed (even for a periodic tenancy), which they can then charge you for (even though a new agreement is not needed).

Yeah, I'm not going to sign anything and I will make that very clear. They will probably pressure the tenant to ask me for a new AST once I say that. Let's see.

Comms69

allygate said:

grumiofoundation said:

You are correct that they (that is to say you as they are your agent) cannot force a new tenancy agreement upon the tenants.
Ask them what legislation requires a 12-month AST to be in place. 
In the event a new tenancy is signed you will likely have to pay fees. However if either you, or the tenant, does not agree then this new agreement cannot be signed, so don't think you would need to pay - although agents may try and convince you a new agreement is needed (even for a periodic tenancy), which they can then charge you for (even though a new agreement is not needed).

Yeah, I'm not going to sign anything and I will make that very clear. They will probably pressure the tenant to ask me for a new AST once I say that. Let's see.

So speak to your tenant yourself? 

princeofpounds

I can't see that slippery clause holding up in court. There are no terms to negotiate and there is nothing that needs to be confirmed in writing. Ultimately there is no new tenancy agreement so there cannot be a fee for it.

Official complaint through their internal process, followed by threat of reporting to their professional standards scheme and/or raising a claim in the small claims court.

allygate

princeofpounds said:

I can't see that slippery clause holding up in court. There are no terms to negotiate and there is nothing that needs to be confirmed in writing. Ultimately there is no new tenancy agreement so there cannot be a fee for it.
Official complaint through their internal process, followed by threat of reporting to their professional standards scheme and/or raising a claim in the small claims court.

I think that's what I'll have to do. The two times I've complained, they've rolled over both times without me having to take it to the TPO. I just got a bit thrown off by their insistence that a new AST is absolutely needed.

Thanks for all your comments, much appreciated!

theartfullodger

Probably depends on whatever your agreement with them was.  I can't read it from here.  Simply write/email to them asking where did you agree to such a fee.

One of my agents does occasionally bill be surprising (small) amounts.  Haven't argued so far as property more that 1,000 mile round trip away.

Other agent I've never in 14 years been unhappy with charges, albeit they sometimes "forget" to pay me.

greatcrested

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?

Post 9: Letting agents: how should a landlord select or sack?

Both links from:

** This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

You need to

a) read your contract and

b) take contol of your employees

macman

Inform the LA that you will not be paying their unjustified bill, and then invoice them for your time wasted over this matter: £50 would be reasonable.