Rolling tenancy - agents want to charge a fee for this?

Rifte · 17 Jan 2017 at 08:24

Landlord myself.

An agent I used to use a few years ago tried this with some GREAT tenants that I had in one of my properties.

Fortunately the tenant had my contact number and spoke to me about wanting to sign another 12 month AST, but the agency were expecting another fee.

I spoke to the agency and told them that I would take my property on myself unless they waived the fee.

Fee waived.

Agents.....skim from every end available to them.

Efour · 17 Jan 2017 at 08:27

Parasites gotta suck blood from somewhere....

SeatIbiza · 17 Jan 2017 at 09:13

Remember you go onto what is called a statutory periodic tenancy. The landlord has to give you 2 months notice and you can give 1.

Having it written into the contract is cheeky as hell that you have to pay. Because, put simply, you don't. And there isn't anything they can do about it and no judge (not that it'd ever get that far) would side with an estate agent.

Semple · 17 Jan 2017 at 09:31

Yeah that does sound like they're trying to take you for a ride.

Probably even more so with the upcoming ban on fees chargeable to the tenant. They're probably trying to make a quick buck before the ban comes into place.

Rifte · 17 Jan 2017 at 10:36

Semple said:
Yeah that does sound like they're trying to take you for a ride.

Probably even more so with the upcoming ban on fees chargeable to the tenant. They're probably trying to make a quick buck before the ban comes into place.

IMO wont make any difference for the agents. Once the ban gets implemented I am honestly expecting a letter through from my agents informing me that 'due to circumstances beyond their control' my landlord fees are going to increase.

Bald-Eagle22 · 17 Jan 2017 at 10:46

Swifty55 said:
You will automatically go onto a rolling contract after the fixed-term, if the landlord wishes to do so.

Can't see how the agents can charge for this. I personally wouldn't entertain them on the matter also when it arises...

Errrr no,you won't . The tennant and landlord have to agree what they want to do as now you have to inform your tenancy deposit protection scheme if the tenancy is periodic or not .

I know as my tennant pulled me up on it .

The use of agents to a larger part in my mind is useless unless you live to far away to manage things yourself .

In 12 years of letting 2 properties I have never had an issue with a tennant for anything . Using a local agent to advertise on rightmove and deal with everything else myself . Simply I ask to for a work reference confirming a permanent position and salary . I also ask for the last three months bank statements to see income and outgoings.

Rifte · 17 Jan 2017 at 10:57

Bald-Eagle22 said:
The use of agents to a larger part in my mind is useless unless you live to far away to manage things yourself .

In 12 years of letting 2 properties I have never had an issue with a tennant for anything . Using a local agent to advertise on rightmove and deal with everything else myself . Simply I ask to for a work reference confirming a permanent position and salary . I also ask for the last three months bank statements to see income and outgoings.

Something I wish I could do.....but living 5k miles away....I need an agent

Skillmister · 17 Jan 2017 at 11:03

Bald-Eagle22 said:
Errrr no,you won't . The tennant and landlord have to agree what they want to do as now you have to inform your tenancy deposit protection scheme if the tenancy is periodic or not .

Errr, yes you will.

You don't have to agree anything with the landlord, it changes automatically. Obviously if the landlord doesn't want you on a periodic tenancy they can request you enter into a new long term one but there is no obligation to do so.

I just checked my old tenancy on DPS which I left this time last year (but the other tenant stayed on). It was a 6 month tenancy in July 2014 but has been periodic ever since that ended with no agreements with the landlord:

Deposit ID #########
Deposit status ACTIVE
Deposit Details
Tenancy start date 18 July 2014
Period of tenancy 6 Months
Monthly rental amount £550.00
Deposit paid £550.00
Date deposit paid 18 July 2014

Jamesyboyjim · 17 Jan 2017 at 11:12

Whenever our tenancy was due for another year and the agents wanted to charge 90 quid to sign a new contract I used to just ignore them, eventually they'd ask the landlord who'd call us and ask what we were doing, we'd always say "we want to stay, tell the estate agents"

Just used to repeat this process until the agents would stop requesting money. We always paid our rent on time, looked after the place, rarely ever needed to ask for anything to be fixed and never had any real issues so the landlord was keen on us. No chance I was paying those stupid fee's to sign another year though.

ColdAsIce · 17 Jan 2017 at 11:20

Bald-Eagle22 said:
Errrr no,you won't . The tennant and landlord have to agree what they want to do as now you have to inform your tenancy deposit protection scheme if the tenancy is periodic or not .

I know as my tennant pulled me up on it .

The use of agents to a larger part in my mind is useless unless you live to far away to manage things yourself .

In 12 years of letting 2 properties I have never had an issue with a tennant for anything . Using a local agent to advertise on rightmove and deal with everything else myself . Simply I ask to for a work reference confirming a permanent position and salary . I also ask for the last three months bank statements to see income and outgoings.

If neither party sends notice before the contract is due to end, then it automatically moves into a rolling contract.

Bald-Eagle22 · 17 Jan 2017 at 11:30

Skillmister said:
Errr, yes you will.

You don't have to agree anything with the landlord, it changes automatically. Obviously if the landlord doesn't want you on a periodic tenancy they can request you enter into a new long term one but there is no obligation to do so.

I just checked my old tenancy on DPS which I left this time last year (but the other tenant stayed on). It was a 6 month tenancy in July 2014 but has been periodic ever since that ended with no agreements with the landlord:

I would get in touch with your scheme , it's only protected for designated dates . You might not be covered .

http://www.depositprotection.com/help/browse/insured/agent-landlord/end-of-tenancy

Skillmister · 17 Jan 2017 at 11:38

Bald-Eagle22 said:
I would get in touch with your scheme , it's only protected for designated dates . You might not be covered .

http://www.depositprotection.com/help/browse/insured/agent-landlord/end-of-tenancy

Important note: If you do not take any action, the deposit will be automatically closed on the tenancy end date and will not be able to be reinstated.

The fixed term tenancy has become periodic, do I need to do anything?
Yes, you should change the deposit status to periodic, either via your online account or by completing an End of Tenancy form, which can be requested by calling 0330 303 0030.

If we are not informed that the tenancy has become periodic before the tenancy end date, the deposit will be closed on the tenancy end date and will not be reinstated.

That didn't happen so either the information is new, outdated, or they don't actually take action on it.

Either way, I moved out a year ago so I don't really care!

Bald-Eagle22 · 17 Jan 2017 at 11:42

ColdAsIce said:
If neither party sends notice before the contract is due to end, then it automatically moves into a rolling contract.

Agreed, it's called a Statutory Periodic Tennancy .

The point I am trying to make is that as a landlord you have a duty to your tennant to confirm this and inform your DPS ( deposit protection scheme ) provider . Mosts if not all DPS schemes will end the protection at the end of the tennency providing no cover for the tennant.

To answer the OP the cost involved is minimal admin work but £99 plus vat seems a reasonable charge for an agency , come and work at Foxtons in Mayfair as this runs into thousands for these simple tasks.

As I said I'm a self vetting landlord and none of my tennants are charged anything other than rent and deposits.12 years 2 properties and 5 tenancies later I have no complaints - just greed.

dl8860 · 17 Jan 2017 at 14:28

I've had the dreaded warning email from managing agents that our fixed term contract is about to end and to contact them regarding renewal. I know they will do their best to sign us up for another year at some fee (would guess £150-200). Last time this happened (different flat different agent) I negotiated down from £190 to £90, but still don't even want to pay that much and would be less bothered about being booted from here anyway.

Guess I'll just speak to the landlord if possible and try and agree statutory rolling. In my mind, the landlord will be happy to keep us on any basis as we're such good tenants. Very little chance of booting good tenants just because they don't sign for another minimum term contract right?

Semple · 17 Jan 2017 at 15:44

dl8860 said:
I've had the dreaded warning email from managing agents that our fixed term contract is about to end and to contact them regarding renewal. I know they will do their best to sign us up for another year at some fee (would guess £150-200). Last time this happened (different flat different agent) I negotiated down from £190 to £90, but still don't even want to pay that much and would be less bothered about being booted from here anyway.

Guess I'll just speak to the landlord if possible and try and agree statutory rolling. In my mind, the landlord will be happy to keep us on any basis as we're such good tenants. Very little chance of booting good tenants just because they don't sign for another minimum term contract right?

Yeah i would go over the agents and speak directly to your landlord.

I'm not a landlord, but i suspect any landlord worth their value would rather current tenants stay on a rolling contract (assuming no issues - obviously), than have to re-advertise/vet new tenants and potentially end up with someone who's going to cause issues.

Swifty55 · 17 Jan 2017 at 15:50

Bald-Eagle22 said:
Errrr no,you won't . The tennant and landlord have to agree what they want to do as now you have to inform your tenancy deposit protection scheme if the tenancy is periodic or not .

Me said:
You will automatically go onto a rolling contract after the fixed-term, if the landlord wishes to do so.

Please read my post before trying to be smart with the "errr".

Rifte · 17 Jan 2017 at 17:04

Semple said:
Yeah i would go over the agents and speak directly to your landlord.

I'm not a landlord, but i suspect any landlord worth their value would rather current tenants stay on a rolling contract (assuming no issues - obviously), than have to re-advertise/vet new tenants and potentially end up with someone who's going to cause issues.

This 100%

Also if the existing tenants leave, I also get new costs associated with a new let.

But....for me the most important thing is a tenant that doesn't cause any drama and respects the property. For a number of years I have refused to increase the rent of a particular property of mine (despite the agency indicating that I should) because the tenants are sooo good.

Bald-Eagle22 · 18 Jan 2017 at 10:35

Swifty55 said:
Please read my post before trying to be smart with the "errr".

Not trying to be a smart arsenal Swifty I'm trying to tell tennnants that although nearly everyone will go onto a Statutory Period Tennancy you need to confirm this with the agents or your Landlord. They need to inform your DPC or it becomes invalid . You will not be protected.

This is where the cost comes in and I was try9ng to explain this to the OP.

Bald-Eagle22 · 18 Jan 2017 at 10:37

Rifte said:
This 100%

Also if the existing tenants leave, I also get new costs associated with a new let.

But....for me the most important thing is a tenant that doesn't cause any drama and respects the property. For a number of years I have refused to increase the rent of a particular property of mine (despite the agency indicating that I should) because the tenants are sooo good.

Agreed , I have a tennant that has not had a rent review in 6 years . Nothing my end has increased in cost and I want as nigh on 100% occupancy.

Although the mortgage interest relief monster is coming over the hill , Standby ,

Rifte · 18 Jan 2017 at 10:39

Bald-Eagle22 said:
Although the mortgage interest relief monster is coming over the hill , Standby ,

Oh yes....

Completed my SA a few months back and the relief figure will be VERY different in a few years time