Renewal fee for no renewal?

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    Renewal fee for no renewal?

    Hello everyone,

    The current AST I have in place with my tenants becomes a rolling monthly soon. Will I need to continue paying agency fees?

    The agency basically does nothing now. I manage everything. The document I signed at the start with them states 'the agreed percentage fees are based on the total gross rental for the duration of the tenancy agreement and are due at the commencement of the tenancy'.

    There is more wording around this later in the document:
    - For each renewal/extension of an existing tenancy commission is charged of the 'rent reserved' under the renewal agreement (whether or not negotiated by us)
    - The same rate will prevail for the remainder of the tenancy (whether or not negotiated by us)

    Thanks!

    #2
    If they are on the ball they will be pressing for another 6/12 month tenancy and want their cut.

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      #3
      They have tried, but the tenant is not willing to sign a new agreement and I don't mind so much, so we are heading for a monthly rolling.

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        #4
        I pay them nothing, all my tenancies go periodic.

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          #5
          Thanks for the replies. I'm just wondering if I can be forced to pay based on the wording above... Thanks.

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            #6
            You may still have a legal obligation to pay them, depending on your agreement with them as it is still the same T which they placed. Don't ignore them, communicated and negotiate a get out so you don't have something hanging over you.

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              #7
              'the agreed percentage fees are based on the total gross rental for the duration of the tenancy agreement and are due at the commencement of the tenancy'

              Unless there is a tricky definition of "tenancy agreement" no fees will be payable after the agreement ends.

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                #8
                Thanks all.

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                  #9
                  Originally posted by Section20z View Post
                  If they are on the ball they will be pressing for another 6/12 month tenancy and want their cut.
                  One person's 'on the ball' is another person's 'mercenary' or 'lacking integrity'.
                  There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

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                    #10
                    Don’t pay them anything and, if they bring it up, ask them how the plan to avoid the outcome of the “Foxtens case”.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                      #11
                      Their charging model does seem to be open ended. I can't seriously be expected to pay these guys the equivalent of a months rent for years and years to come just because they helped setup the initial agreement (especially given they literally do nothing now)...

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                        #12
                        Originally posted by abbb053 View Post
                        Their charging model does seem to be open ended. I can't seriously be expected to pay these guys the equivalent of a months rent for years and years to come just because they helped setup the initial agreement (especially given they literally do nothing now)...
                        The clause you quoted does not (appear to) say that though that may be what was intended. tt only says that if there is a definition of "tenancy agreement" which includes all future tenancies with the same tenant. Even if you have that, the law says it will only be enforceable if clearly pointed out before you signed.

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