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£100 Administration charge


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Me again!

 

Our letting agency want to charge £100 + VAT admin charge when we leave the flat.

 

We had a 6 month AST, then a rolling tenancy. When we signed for the rolling tenancy no new contract was issued, but I think we were bound by the original terms which never mentioned a check out fee.

 

1. Should I request what the admin charge covers?

2. Is it excessive in the unfair terms in tenancy / Unfair terms in consumer contracts?

3. If I complain about the charge can it have repercussions on my guarantors or even me?

4. on checking out, can I receive a receipt that shows the tenancy has ended, my guarantors aren't related to that property and my name is not black listed?

 

 

 

Thank you .

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1) Yes

2) Difficult to say without answer to 1

3) Possibly references, but I doubt it

4) I dont know exactly what you mean - the tenancy is ended by you leaving basically.

 

Also, as I said before I doubt the admin charge is enforceable as you were not informed prior to taking up the contract.

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

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You are legally bound by the terms of the letting contract.

 

But no one is going to write this £100 figure into that agreement. The agreement will simply say, in general terms, that you are liable to pay an "administration charge" on termination of the tenancy. If it doesn't say so, make a fuss.

 

But don't just look for a figure of £100 + VAT, because it won't be there.

 

No, the term is NOT capable of being an unfair term. That Act relates only to unfair exclusion clauses in a contract, excluding someone's liability to you, not to ordinary contract terms.

 

If you complain, it can't have repercussions for you, unless you are hoping to get a good reference from this landlord for your future use.

 

It's essential to get written evidence that the tenancy has ended, otherwise you remain liable for the rent until the landlord himself ends the tenancy, e.g. by re-letting the premises.

 

You are only likely to find yourself blacklisted if a Court judgement is granted against you, for an unpaid bill. So if they sue, watch out! But that will take months, and is unlikely to occur if you don't leave a forwarding address!

Note

 

This is a self-help forum in which users share their experiences. Assistance is offered informally, without any assumption of liability. Use your own judgement; obtain advice from a qualified and insured professional if you have any doubts.

 

This posting gives general guidance only. It is not an authoritative statement of the law. Consult a Solicitor for specific advice before deciding on any course of action.

 

 

Further information:

 

Assured and Shorthold tenancies - A guide for tenants

 

Renting and Leasehold - Advice from Shelter

 

 

All posts are opinion only

 

 

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Ed, not entirely true - it is unfair if that is not the actual cost to the letting agents of them moving out...

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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Ed, not entirely true - it is unfair if that is not the actual cost to the letting agents of them moving out...

 

I have to disagree. Article 6(2) of The Unfair Terms in Consumer Contracts Regulations 1999 says that the assessment of fairness of a term shall not relate...to the adequacy of the price or remuneration, as against the goods or services supplied in exchange.

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I have to disagree. Article 6(2) of The Unfair Terms in Consumer Contracts Regulations 1999 says that the assessment of fairness of a term shall not relate...to the adequacy of the price or remuneration, as against the goods or services supplied in exchange.

 

 

Does that mean that they can basically charge me what they want as long as they say it is for an administration charge?

 

Surely that can't be right, otherwise they could turn around tomorrow and tell me I have to pay £500 in administration charges and make up a reason for it.

 

It seems an unfair balance of power. Next time I will be looking to go to a landlord direct I think.

 

Thanks for all the posts though!

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If you complain, it can't have repercussions for you, unless you are hoping to get a good reference from this landlord for your future use.

quote]

 

 

How awful that you aren't able to complain for fear of not getting a good reference. I've always paid my rent on time, kept the place clean and will leave it spotless. Yet they have you where they want you charging as much as they like because as a tenant you need a good reference. Can't wait not to deal with letting agencies!

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I have to disagree. Article 6(2) of The Unfair Terms in Consumer Contracts Regulations 1999 says that the assessment of fairness of a term shall not relate...to the adequacy of the price or remuneration, as against the goods or services supplied in exchange.

 

IMO, this is challengable under the "unfair penalty" area of contract law. I agree, not clear cut however.

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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An agreement to pay a fixed charge for a service provided, even if excessive, is not a penalty. A penalty can only arise only when there is a breach of contract.

 

This web page Penalty or Liquidated Damages – A question of enforceability although Australian, sets out the basic position. The leading case of Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd referred to is an English case.

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Fair point, I stand corrected. I think I was concentrating too much on the fact it was an admin charge brought about by the termination of the tenancy :).

7 years in retail customer service

 

Expertise in letting and rental law for 6 years

 

By trade - I'm an IT engineer working in the housing sector.

 

Please note that any posts made by myself are for information only and should not and must not be taken as correct or factual. If in doubt, consult with a solicitor or other person of equal legal standing.

 

Please click the star if I have helped!!

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