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Tenency Renewal Question

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  • Tenency Renewal Question

    Hi guys,

    Looking for advice really. I rent a property through a letting agency. The initial term recently expired and I was emailed about renewal and agreed and signed contracts etc to then receive another email requesting payment of £114 for the renewal.

    My question is whether this is legit if it hasn't been mentioned previously. I am asked to make payment by bank transfer using the same reference number as my rental payment. Could the letting agent deduct their fee from the rent payment and indicate to the landlord my payment was less? I am loathe to pay this fee purely because it wasn't mentioned previously and also it seems a steep charge for them reprinting five sheets of A4.

    Where do I stand from a legal point of view if I refuse to pay it?

    Thank you!
    Tags: None

  • #2
    From 1 June 2019 all upfront fees for tenants will be banned. What you can’t be asked to pay

    If you sign a new tenancy or renew your tenancy after 1 June, you can’t be asked to pay for:
    • referencing
    • credit and immigration checks
    • administration
    • renewing your contract
    What you can still be asked to pay

    The only fees that you can be charged will be:
    • for the cost of replacing a key if you lose one
    • if you are more than 14 days late with your rent
    • if you want to change your tenancy or bring it to an end
    How much you can be charged

    At the moment there are no rules setting out how much letting agents can charge.
    Different agencies often charge different fees for the same service.

    Letting agents must clearly set out the fees they charge on their websites and in their offices. They must tell you:
    • the cost of each fee including VAT
    • what the fee covers

    Applicable in England

    Comment


    • #3
      Originally posted by Aaabbb View Post
      Hi guys,

      Looking for advice really. I rent a property through a letting agency. The initial term recently expired and I was emailed about renewal and agreed and signed contracts etc to then receive another email requesting payment of £114 for the renewal.

      My question is whether this is legit if it hasn't been mentioned previously. I am asked to make payment by bank transfer using the same reference number as my rental payment. Could the letting agent deduct their fee from the rent payment and indicate to the landlord my payment was less? I am loathe to pay this fee purely because it wasn't mentioned previously and also it seems a steep charge for them reprinting five sheets of A4.

      Where do I stand from a legal point of view if I refuse to pay it?

      Thank you!
      Whilst post #2 is good going forward, it doesn't apply to you as it's only May now.

      I would simply write back to them stating that they had not mentioned the fee prior to the renewal taking place and therefore you entered into contract with them on that basis and that your contract in law is based solely on the terms set out in the tenancy agreement plus the offer email/letter. Had a fee been mentioned prior you may have come to a different determination as to whether to renew, but in any event their failure to disclose it prior to entering into contract with you means that you will not be paying it.

      They are not entitled to deduct fees from your rental payment unless the tenancy agreement specifically states it, also might be worth checking a renewal fee isn't mentioned in there before writing back to them.

      All agents are rushing at the moment to try to renew with tenants early before the 1st of June to get their fees for doing by proportion to what is charged nothing.
      COMPLETING AN N180 DIRECTIONS QUESTIONNAIRE (SMALL CLAIMS TRACK) GUIDE

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      Comment

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