Admin charges when renewing tenancy

[rosiecotton]

Hi - asking for help this time!

I've been living in my current flat for nearly 4 years now. I originally had a 12 month agreement and after that it was renewed so I was on a month-by-month agreement.

My boyfriend moved in with me last August and I notified the letting agent. They sent me a new tenancy agreement to sign with both our names on it, and put the rent up which I agreed to. At no time do I recall any paperwork stating that the type of agreement had changed, and there is no mention of this in the actual agreement papers.

Now I have received a notice stating that the tenancy agreement will come to the end of its six month period in February 2007 and asking me for my preference - whether I want it to be month-by-month or a further six or twelve month tenancy.

They are now asking for £58.75 to continue with the tenancy on a month by month basis.

I was already under the impression that I was on a month by month contract (although they clearly claim differently) so why should I now pay an administration fee for this?

The galling thing is that we are saving up for a deposit on a bigger place, but we won't have quite enough cash by February. So we'll be moving out in a matter of months anyway, and as we are counting every penny it's a pain having to pay almost £60 for admin fees for another couple of months in the property.

Just wondered if there was anything I could do, or do I have to grin and bear it!

[demon_x_slash]

I think you had what was called a 'rolling tenancy'; that after the fixed term had expired, you just continued to pay rent, without signing a new contract until your OH moved in? Depending on what the contract says, you may have been tricked into changing it into a six-month...

Whatever the case, £58 is not a true reflection of their costs - most agents have copies of contracts that they just pull out and photocopy, get you to sign, and then file away again - you can't tell me that that process costs £58, especially if you go into their offices to sign it rather than arrange a home visit.

It's similar to the banks in the aspect of contract between two parties - unfair clause to the detriment of one party - not a genuine pre-estimate of costs - so you could adapt a template letter to ask for a breakdown of the charge. However, I personally would wait for Nightmare4Banks, or maybe even PM hir; s/he seems to be top dog in these situations!

Incidentally, my letting agent tried to charge us £70 for a simple renewal of contract - the above pull, photocopy, sign, and file! They'd already sent us the papers to sign so we got them all signed and arranged, then I stormed into the office and demanded an address for which to send a written complaint, in my best ANGRY voice; while the visibly shocked girl flapped around getting me a business card with a company address on it, I laid the contract down on the desk and told her that they'd requested these papers signed as well. Got the card, walked out - never heard of this ridiculous £70 again...

[roger56]

Originally Posted by rosiecotton

Just wondered if there was anything I could do, or do I have to grin and bear it!

You are entitled to ask to go to a periodic tenancy, if the landlord agrees
you should not need to pay any further admin fees related to renewal of tenancy agreements. Some agents "forget" to tell you this as they don't make money from it - admin fees are seen as a nice earner for some. Some even try to charge the landlord as well!!
I rent one property and avoid dubious estate agents with lots of charges for tenants - I ask to see their schedule of charges for both myself and the tenant before doing business with them. They must also be members of the ombudsmans scheme. I'm alway open to rolling tenancies, no one can plan their life in 6 / 12month blocks it's ridiculous.

Good luck with the house move. This leaflet on unfair terms is useful for tenants (chose the one titled Unfair tenancy terms )
Unfair terms guidance
Check you new tenancy contract out before signing.

[callumsgran]

They tried doing this to us and when i said i didnt want to re-sign for 12 months said they dont do statutory periodic tenancies only fixed term!

[roger56]

Originally Posted by cillitbanger

They tried doing this to us and when i said i didnt want to re-sign for 12 months said they dont do statutory periodic tenancies only fixed term!

In that case they were in effect terminating your tenancy ie giving you the statutory notice period. See these notes - the fixed term and periodic tenancy para:

Residential Tenancies, Rent Act Tenancies, Assured Tenancies, Assured Shorthold Tenancies

My guess is the agents just want the additional regular income from admin charges etc, it may well raise them £100-£200 for very little work.
I would not let through such an agent.

[rosiecotton]

OK I wrote to them stating that I had not agreed to alter the terms of my tenancy agreement and even if I had, £58.75 was not a reasonable charge for the administration they would be carrying out.

I was expecting a fight, but they've just rolled over and agreed to waive the fee.

Hurrah

[demon_x_slash]

Nice one