Deterrent letting agent fee for Statutory Periodic Tenancy

by Readers Question

13:37 PM, 15th February 2016
About 3 years ago

Deterrent letting agent fee for Statutory Periodic Tenancy

Make Text Bigger
Deterrent letting agent fee for Statutory Periodic Tenancy

I had a letter recently from my letting agent regarding renewal of my tenancy, and there was a £75 charge for moving to an SPT. As I had done a little research I questioned this fee, and the response I got was that the fee is there as a deterrent which I thought nothing more of.Deterrent

I signed the form indicating my intent to move onto an SPT (I guess accepting that I would pay the fee). After a few days the letting agent got in contact saying that they were having trouble convincing the landlord to allow us to stay on as an SPT, but they would keep trying (whether or not they were lying I don’t know).

A few days later I got another email saying that the landlord had accepted and I can now pay the fee.

I have since been wondering if I really have to pay this fee. Can they make me pay this? Is it even legal to charge a “deterrent fee” for this?

On another note the renewal fees for 6 or 12 months were only £30 which is why I feel that this is a bit unfair.

Thanks

Rob



Comments

Gary Dully

23:18 PM, 15th February 2016
About 3 years ago

Rob,

As a Landlord, this sort of practice drives me nuts with my letting agents and makes me deeply mistrustful of their services.

They are taking advantage of your lack of knowledge and more than likely your landlords as well in an attempt to raise more revenue.

Under current statute your tenancy becomes an SPT automatically and it is a legal right that they have no control over.
So what exactly are you paying for?

If you want the protection of another AST Fixed Term, (Chargeable), you will create another tenancy, if you want to drop to 2 months protection of notice from your Landlord, (Dependent on your payment intervals), you will go to a Periodic Tenancy.

They should also renew your deposit protection and issue the 'Prescribed Information' , should you go to an SPT or new AST.

There are pros and cons of allowing this to happen, that it would be better discussed before trying to extort money out of you and your Landlord.

Paul Franklin

14:50 PM, 16th February 2016
About 3 years ago

Reply to the comment left by "Gary Dully" at "15/02/2016 - 23:18":

I don't think you have to re-protect deposits or re-issue prescribed information anymore if it was done correctly for the initial tenancy. As of last summer I think, when the Deregulation Act was passed.

Luke P

14:52 PM, 16th February 2016
About 3 years ago

And if you don't pay, you're tenancy will become SPT anyway...it's automatic and nothing they can control.

Don't pay and wait. They could serve notice, but I doubt that instruction would come from the landlord and they'll back off.

Chris Byways

17:01 PM, 16th February 2016
About 3 years ago

Reply to the comment left by "Gary Dully" at "15/02/2016 - 23:18":

Hey Gary, you could try BestLet in Cambridge,they know just how to do it. But don't!

https://www.landlordtoday.co.uk/breaking-news/2016/2/local-letting-agent-guilty-of-unlawful-eviction


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Change to Universal Credit rent arrears payments

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More