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Tenancy Renewal Fee


St.Ives
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Try telling them that you don't want a new contract and that you are happy with a rolling periodic tenancy. They may try and threaten you but the LL is generally more concerned with keeping a tenant and avoiding a void.

If the 2 month notice thing worries you then you could try just refusing to pay the fee and see what happens, I suspect not much (probably just annoying letters demanding payment), or possible take a different angle and say that you are not happy with the fee for only a 1 year contract and ask for 5 years minimum.

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If you don't renew the contract you go onto a mandatory 1 month rolling contract. Shouldn't have to pay for that i suppose but may not work in your favour.

When my 1 year tenancy was up i got a letter telling me my options, i dont think they would have charged if I went for another year - but i cant be sure. Seems unfair to me.

I would make sure your getting moneys worth, has the boiler been serviced/checked in the last year, etc.

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  • 4 weeks later...
  • 2 months later...

I have a similar dilemma. My 1 year tenancy has just passed the renewal date and the increased rent has come out the bank.

I've not signed another year's tenancy yet because I want to go onto a rolling statutory periodic one.

1- Do I have to tell the EA I want to remain on a periodic tenancy?

2- Can the EA force me to pay their renewal fee when I'm not actually renewing?

Thanks guys

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I have a similar dilemma. My 1 year tenancy has just passed the renewal date and the increased rent has come out the bank.

I've not signed another year's tenancy yet because I want to go onto a rolling statutory periodic one.

1- Do I have to tell the EA I want to remain on a periodic tenancy?

2- Can the EA force me to pay their renewal fee when I'm not actually renewing?

Thanks guys

Nope and Nope

I like the easy questions :)

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I phoned the estate agents in regards to SPT and they checked on their system about the property. They said it has to be a minimum of 6 months..


Is this at request of the landlord or typical EA lies?


I hadn't seen about SPT in the tenancy agreement but I found it mentioned and it said it has to be agreed by the landlord. The EA exclusively does renting.


Edited by Assume The Opposite
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I think that the law trumps the EA or the LL and when an AST becomes periodic then one months notice required from the tenant and two months from the LL. Sure both parties can agree six months with break clauses and Bruce Banner IIRC generally always has six or 12 months left on his agreements ie he negotiates a new longer agreement way before the current one run out.

Between six and eighteen months. I negotiate a further twelve months when there is six months to run.

No renewal fee, no new contract, just an email exchange where both parties agree to extend the existing contract, this becomes a binding legal agreement. A verbal agreement is also legally binding, just more difficult to prove.

Edited by Bruce Banner
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I phoned the estate agents in regards to SPT and they checked on their system about the property. They said it has to be a minimum of 6 months..

Is this at request of the landlord or typical EA lies?

I hadn't seen about SPT in the tenancy agreement but I found it mentioned and it said it has to be agreed by the landlord. The EA exclusively does renting.

The bit in the agreement is irrelevant, legally you do not have to move out at the end of your tenancy, you do not have to agree anything with the landlord about SPT and there is feck all they can do about that.

Whether they then give you notice is a different question but it's worth being aware of the actual situation which is you WILL by default go onto an SPT with one months notice the minute your tenancy ends

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Whether they then give you notice is a different question but it's worth being aware of the actual situation which is you WILL by default go onto an SPT with one months notice the minute your tenancy ends

The tenancy has already ended so it's already on a SPT. I'm going to pop in and ask them why it has to be 6 months minimum.

If it has to be 6 months minimum at the landlords request then fair enough..

If it has to be 6 months minimum cause the estate agents wants it to be then that's rubbish right?

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The tenancy has already ended so it's already on a SPT. I'm going to pop in and ask them why it has to be 6 months minimum.

If it has to be 6 months minimum at the landlords request then fair enough..

If it has to be 6 months minimum cause the estate agents wants it to be then that's rubbish right?

Sorry, Im not quite understanding what you are asking

If you are on an SPT then "what" is it you are saying has to be 6 months?

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Six month periodic?! Never heard of it.

If you were paying rent once every 6 months then I think when it becomes periodic you keep paying every 6 months. It's unusual but it did happen to a girlfriend of mine where the landlord wanted the first 6 months rent in advance, so she ended up with a 6 month rent period.

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Tenancy renewal fees are made up of a small bit of the letting agents time but also they will usually pay for legal documents, usually an annual charge, there are other factors such as the new right to rent checks when ever a new tenancy is created.... Saying all this some agents do charge way too much £20 should be sufficient to cover costs as they are getting paid by the landlord...

Some landlords don't like tenants to go onto SPT as the tenant could leave at an awkward time such as just as just before Christmas where renting back out would be difficult, a prime example of this would be student lets where if you miss the intake of new students re-letting could take time.

A lot of BTL mortgages state that the AST should be from 6 months to 12 months, which can be a big factor in not allowing longer tenancies....

Personally I hate letting agents as most of the charges to tenants are ridiculous, unfortunately cant see it changing any time soon.

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So are you saying that the terms of the BTL mortgage out rank the law ie at the end of the AST fixed term the contact going periodic does not apply.

No I never mentioned Periodic in that sentence but I was trying to give incite into why either a new AST or renewal AST landlords generally use 6 months or 12 months rather than longer or shorter.

To answer your question which im pretty sure you know, unless notice has been given then the AST will automatically go onto a periodic tenancy agreement, thats from a tenants perspective, the reason some landlords can get jumpy is you may not know a tenant can leave the property on the last day of the AST and not have to give any notice... Note if you stay even a day longer the AST turns into a periodic agreement and notice must be given... Although in practice im sure this rarely happens it gives incite into why letting agents and landlords like to push tenants into signing a new agreement, although I guess for a letting agent it is also about the fee they can charge...

My sister rented a house a while back, she had been their about 2 years and had renewed at the end of the first year for a 1yr AST, at the end of this she wanted to stay on for a few more months, the estate agent tried to push to get them to sign a new AST, they only wanted to stay on a few more months however the landlord did not want that as it would have meant having to try and find a tenant in the middle of December which is kind of understandable so basically they had the choice of sign a new 1yr AST or leave, now I know they could have just pretended they would leave then when they didnt the landlord would have to serve a section 21 giving at least 2 months notice and this would have given them the time they needed but in a civilised world they made alternative arrangements.

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My sister rented a house a while back, she had been their about 2 years and had renewed at the end of the first year for a 1yr AST, at the end of this she wanted to stay on for a few more months, the estate agent tried to push to get them to sign a new AST, they only wanted to stay on a few more months however the landlord did not want that as it would have meant having to try and find a tenant in the middle of December which is kind of understandable so basically they had the choice of sign a new 1yr AST or leave, now I know they could have just pretended they would leave then when they didnt the landlord would have to serve a section 21 giving at least 2 months notice and this would have given them the time they needed but in a civilised world they made alternative arrangements.

You sister had three choices

Sign new AST

Leave

Just stay and go periodic and simply inform the landlord that was what was happening

Its perfectly civilized, no pretense needed, you simply don't discuss anything with the agent when coming to the end of the AST, the reason people don't do this is many tenants are beholden to the landlord, people seem to forget.. the tenant is the customer therefore the landlord should be grateful to have a tenant and not the other way around

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Just to update you guys.. I went into the EA and asked why I had to do the AST of 6 months minimum. Turns out it is what landlords and the EA prefer. I then took a chance and mentioned the reason for wanting to go onto a SPT was because I'm buying a house...

No problem! They were quite understanding and they seem to be used to it.. No renewal fee, no 6 month AST, remain on a SPT. :P:)

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You sister had three choices

Sign new AST

Leave

Just stay and go periodic and simply inform the landlord that was what was happening

Its perfectly civilized, no pretense needed, you simply don't discuss anything with the agent when coming to the end of the AST, the reason people don't do this is many tenants are beholden to the landlord, people seem to forget.. the tenant is the customer therefore the landlord should be grateful to have a tenant and not the other way around

If she had not signed the AST with 2 months to go they would have served a section 21 eviction notice, thats how landlords get round the avoiding the periodic agreement. Its all very well not discussing if the agent also does not discuss but not so civilized when the agent asks you and you dont reply... The tenant is the customer I agree but its not the same as a supermarket and the landlord does not have to rent to you so its best to have a good civilized relationship with your landlord.

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Serving a s. 21 notice does not prevent a Statutory Periodic Tenancy from arising. The law says that a SPT arises at the end of an AST unless there is a court order or "by surrender or other action of the tenant." So if the AST ends, and T remains in occupation, an SPT arises. Also it it something of a misnomer to describe the s. 21 notice as an eviction notice, though I know it is commonly known as one it does give rise to the false impression among many landlords and tenants that T must leave when the notice expires. That is not so.

As to the minimum length of an AST, it is true that theoretically these could be as little as one day, however from the landlord's point of view the minimum is now effectively 6 months for new tenancies: a landlord can no longer serve a s. 21 notice within the first four months of an AST.

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