Letting agents fees - AST renewal - yes or no?
Discussion
Mrs & I have just come to the end of 1 years contract of an assured shorthold tenancy - the renewal documentation from the letting agent - in addition to the contracted raise pegged to RPI (5.3% in april 
) is tryng to charge us £150 for a 'contact addendum'
This strikes me as a crock of s
t as - as i understand it - outside of the initial AST period the agreement defaults to a periodic tenancy, and there is no benefit signing up to another AST - particularly as they are after 150 quid for the privalige...
we don't pay the letting agents, but rather the landlord directly - so there is pretty much nothing of benefit as i see for us or the landlord in the additional costs...
any advice from landlords, tennants or legal types most gratefully recieved
) is tryng to charge us £150 for a 'contact addendum'This strikes me as a crock of s
t as - as i understand it - outside of the initial AST period the agreement defaults to a periodic tenancy, and there is no benefit signing up to another AST - particularly as they are after 150 quid for the privalige...we don't pay the letting agents, but rather the landlord directly - so there is pretty much nothing of benefit as i see for us or the landlord in the additional costs...
any advice from landlords, tennants or legal types most gratefully recieved
This was a matter considered in the Landmark High Court Judgement between The Office of Fair Trading –v- Foxtons December 2009, a copy of which can be downloaded from http://www.bailii.org/.
My understanding is, and I am not a solicitor, is that Foxtons, or any other agent, are allowed to continue to charge renewal commission, IF that clause/condition is clearly stated in any Contract or the original Tenancy Agreement.
One previous poster to the OP post, stated that the OP should deal direct with the Landlord, thereby seeking to avoid the renewal commission/payment. In the above Judgment Foxtons were allowed to still receive the commission/payment even if the tenant renewed direct with the landlord, that being allowed for a period of 2 years.
As a with any clauses on Tenancy Agreements, so long as they are lawful, then the time to object is prior to signing the Tenancy Agreement, and not after, or in the OP’s case upon the renewal of the tenancy.
There is nothing to stop the OP negotiating with the agents in a friendly approachable manner, who knows they might agree either a cancellation or reduction in the renewal fee/payment.
The Op is correct to say that after the fixed period of an Assured Shorthold Tenancy, then the tenancy becomes a Periodic Tenancy, with the OP/Tenant enjoying the same legal rights of tenancy.
The advantage for the agents/landlords in renewing the Tenancy Agreement, apart from the renewal commission, is for them to enjoy a further secure fixed term of tenancy, a point that should be used by the OP in any negotiating of the renewal payment.
If the OP refuses to take up, or rather renew the Tenancy Agreement, then the agents can either do nothing or give the OP two months Notice to end the tenancy.
My understanding is, and I am not a solicitor, is that Foxtons, or any other agent, are allowed to continue to charge renewal commission, IF that clause/condition is clearly stated in any Contract or the original Tenancy Agreement.
One previous poster to the OP post, stated that the OP should deal direct with the Landlord, thereby seeking to avoid the renewal commission/payment. In the above Judgment Foxtons were allowed to still receive the commission/payment even if the tenant renewed direct with the landlord, that being allowed for a period of 2 years.
As a with any clauses on Tenancy Agreements, so long as they are lawful, then the time to object is prior to signing the Tenancy Agreement, and not after, or in the OP’s case upon the renewal of the tenancy.
There is nothing to stop the OP negotiating with the agents in a friendly approachable manner, who knows they might agree either a cancellation or reduction in the renewal fee/payment.
The Op is correct to say that after the fixed period of an Assured Shorthold Tenancy, then the tenancy becomes a Periodic Tenancy, with the OP/Tenant enjoying the same legal rights of tenancy.
The advantage for the agents/landlords in renewing the Tenancy Agreement, apart from the renewal commission, is for them to enjoy a further secure fixed term of tenancy, a point that should be used by the OP in any negotiating of the renewal payment.
If the OP refuses to take up, or rather renew the Tenancy Agreement, then the agents can either do nothing or give the OP two months Notice to end the tenancy.
Edited by Wings on Wednesday 23 June 11:40
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