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How can I avoid Tenancy Renewal Fees ?

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Author Topic: How can I avoid Tenancy Renewal Fees ?  (Read 199 times)
Newbie
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« on: February 22, 2020, 08:50:55 PM »

Hello all,

I would like your help as my Tenancy agreement  (12 months term short assured)  ends in one month and the Letting Agency insists on a renewal of 6-month term and not 12 months.
We do not want to pay renewal fees every 6 months.......
Should we ask for a periodic tenancy (although we prefer another 12 months term renewal without renewal fees )?
 
Letting agency sent me the below message
 

We are emailing to inform you that the Tenancy Agreement for the above property is due to expire on the ..... March 2020.

RENEWING YOUR TENANCY:
 
Please make a payment of 90 if you wish to renew your tenancy agreement, the landlord has confirmed you may renew for a term of 6 months.

If you do intend to extend your tenancy agreement, but your renewal fee has not been received prior to the expiration date of your current contract, the renewal fee would be sent to a debt collection company and any incurred fees would be payable by the tenant.


Unfortunately, there was a clause in the agreement stating that we have to pay 90 for the renewal, so should I pay it and ask for periodic tenancy, or ask for a periodic tenancy without paying the fee?

I am very confused and I will very much appreciate any help

Thank you
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« Reply #1 on: February 22, 2020, 09:27:18 PM »

The tenancy started before June 2019 so the renewal fee is currently allowed. I'm sure you know this, but just stating it for completeness. After June 2020 it would not be allowed. So it would be your last one (if you stayed on). The fee could be much larger... 90 is money for old rope, of course, but it's not extortionate. I might swallow it, knowing it'd be the last time. It is OK for you to ask for 12 months, it is OK for you to ask for periodic. If you just stay on then a SPT arises automatically, but people might not be happy with your actions. You could try a bit of brinkmanship, I suppose.

In this situation it looks like there's no advantage to the Agent, in regards your fees, to insist on 6 months... possibly they are misleading the Landlord into paying more, regular, fees. That is not your problem, of course.
Newbie
Posts: 3

I like property

« Reply #2 on: February 23, 2020, 01:17:59 PM »

Thank you for your reply.
We have asked for 12 months renewal but the Agent (might be the landlord as well ? ) insists on a 6 months term. We stay at this property for 18months in total so far ( initial tenancy of 6 months and then 12 months). Now they are asking for 6 months instead of 12months.
The agent asks us to pay the fee first and then they will send us the agreement to sign in. But we would like to know what kind of clauses will be included in. They might include a renewal fee again in the new agreement? Of course, we won't sign it, but I reckon they try to take money from both us the tenants and the landlord.
In the last renewal of 12 months, they asked for a rent rise of 25 pounds, which as the landlord told us the agent keeps for admins fee, so the landlord still receives the rent with no increase of those 25 pounds per month. Not sure of course if this is the case -if the landlord is honest with us.

I will ask for a copy of the renewal first before I pay the 90 pounds fee.

What do you think?

Many thanks again for your help
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« Reply #3 on: February 28, 2020, 10:19:36 AM »

Agreement first, payment later - sure.

Rent rises - unrelated.

There cannot be a renewal fee in the next tenancy - statutory law. Things have changed. Let them try.
Newbie
Posts: 3

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« Reply #4 on: March 21, 2020, 03:34:22 PM »


Hi,

Letting Agency sent me a draft copy of the renewal agreement, which has a renewal fee  again !!!

To my reply : we do not want to sign-in the new agreement with a renewal fee , this is why we have asked to receive a copy of the new contract agreement.

Please prepare and send us a different contract agreement without a renewal fee.

Letting Agent replied:

In regards to your query about the renewal fee; as your agreement is an Assured Tenancy the renewal fee is still valid, the recent legislation which came into place relieving tenancy fees is applicable to Assured Shorthold Tenancies only.

So far we had 2 shorthold tenancies ( first for 6 months and second for 12 months) . Now they insist on having a 6-month tenancy renewal and they ask for an Assured Tenancy ?

Can you help me please?

Many thanks
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« Reply #5 on: March 24, 2020, 03:17:50 PM »

You should probably research the differences between an Assured Tenancy and an Assured Shorthold Tenancy. I am a little bit confused about your situation re. an existing Assured Tenancy. I cannot tell if you are having the wool pulled over your eyes by an Agent who is trying every trick they can think of to collect fees... it's interesting.
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