Agent fee for periodic tenancy?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Agent fee for periodic tenancy?

    Hi,

    I have a simple question for which I hope there is a simple answer. My tenancy agreement (i am the landlord) is close to expiry and the agent seems to think that they are due fees again even if the tenancy agreement moves to a periodic tenancy. I understood that I have to pay if the tenancy was renewed or extended (i.e. a new fixed term) but does moving to a periodic tenancy mean that the tenancy has been renewed or extended?

    The contract implies I only have to pay fees on extension or renewal of the tenancy. Does renewal/extension of tenancy also include periodic tenancy?

    The exact wording for extensions and renewal is as follows:

    "The Landlord shall pay the Agent the fee in respect of each extension and renewal of a tenancy as if it were a new letting irrespective of whether or not the negotiations were carried out by the agent."

    There is no other wording in the contract that suggests anything meaningful (to answer my question) on top of the above text I have quoted.

    From what I read a periodic tenancy is just a continuation of the existing tenancy so it is not being renewed or extended. But not entirely sure so would appreciate your views.

    Many thanks

    #2
    There is no such thing legally as an extension or renewal of a tenancy as far as I am aware. The wording used in the legislation is replacement tenancy. An SPT is a new tenancy that arises by statute and so if they try to make you pay, ask them where in the legislation it says that an SPT is an "extension" or a "renewal".

    Comment


      #3
      Thanks for the reply DPT57.

      I should also have noted in my original post that the contract mentions the following:

      "The [% of gross rent] fee is due for the entire agreed term of the tenancy..."

      But I assume this does not imply that I have to pay a fee on a SPT, which you mention is a new tenancy and therefore not part of the agreed term of the tenancy and thus no fee is payable.

      Comment


        #4
        A SPT is a new tenancy, but it's clearly not an extension and I don't see how it can be considered a renewal.

        Also, they don't do any work for a SPT to be granted, I'm not sure how they can justify any such fee given the judgments in OFT v Foxtons.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

        Comment


          #5
          Thanks KTC. So it looks like the agent was trying it on!

          I maybe getting ahead of myself but based on what I have said what the contract says, does going onto a NEW fixed term contract with the same tenants mean that I also do not need to pay the fee? They would not really be doing any work either in this case.

          Comment


            #6
            Originally posted by leasee123 View Post
            "The [% of gross rent] fee is due for the entire agreed term of the tenancy..."

            But I assume this does not imply that I have to pay a fee on a SPT, which you mention is a new tenancy and therefore not part of the agreed term of the tenancy and thus no fee is payable.
            I think that's probably pushing it.

            Comment


              #7
              Even, from what i understand, my situation is similar to the OFT vs Foxtons case?

              Comment


                #8
                Also some of the rent was paid upfront for the current tenancy; due to my tenants not having enough income. If the tenancy moves to a SPT, what happens to the rent payable in this case, is paying the rent two months in advance ok; since I understand I need to give two months notice for tenants to vacate? Note I have never had a single issue with my tenants.

                Comment


                  #9
                  Originally posted by DPT57 View Post

                  I think that's probably pushing it.
                  So does that mean I would have to pay the fee if it moves to a SPT?

                  Comment


                    #10
                    No, unless you offer a new Fixed Term Tenancy.

                    Comment


                      #11
                      Thanks, so it looks like they certainly can not charge fees if the tenancy lapses to a SPT but they can if another fixed term tenancy is created.

                      I will discuss directly with the tenants about moving to a SPT. I did have one question which may complicate things; the original tenancy has some of the rent paid upfront whilst the rest is paid monthly. How would the rent payments work for a SPT?

                      Comment


                        #12
                        I think Mariner probably means you don't have to pay a specific renewal fee. The ongoing fees that are a percentage of your rent should continue to apply.

                        Comment


                          #13
                          But i thought as per post #2 SPT is a new tenancy so no fees would apply?

                          Comment


                            #14
                            I do not pay any on a regular basis. The only fee i ever paid the agent was an upfront fee at the start of the tenancy; the fee was for finding the tenant.

                            Comment


                              #15
                              Originally posted by leasee123 View Post
                              I do not pay any on a regular basis. The only fee i ever paid the agent was an upfront fee at the start of the tenancy; the fee was for finding the tenant.
                              OK. My misunderstanding. I thought your statement about paying a percentage of the rent suggested you were paying fees monthly. In that case, I agree that no fee should be payable

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X