L lets direct to T- so why renewal fees?

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    L lets direct to T- so why renewal fees?


    We're renting a 6 bed property directly from our landlord, there is no agency involved. We're currently negotiating remaining in the property for another year (this is our second currently) and replacing two of the existing tenants with new ones at the same point (friends of ours). However the landlord has stated that we will need to pay renewal and reference fees of the following:

    £75 pp for renewal
    £100 pp for reference
    Note new tenants apparently need to pay both

    Firstly I question are we really are obliged to pay these fees in our situation? (ie directly renting from the landlord) There is no agency involved, so surely no "agency renewal fees" exist ~ ok so maybe perhaps some nominal admin fees but surely not this order of magnitude?

    Secondly, these have jumped up by £25 for each charge from: £50 pp for renewal, £75 pp for reference, since our last renewal (~5 months ago) and switching a tenant mid-contract (~3months ago)

    The landlord doesn't seem to agree that these numbers need justifying, so how can we ensure these apparently arbitrary amounts are fair? They certainly don't seem so.


    The landlord can make up any fees he likes - you don't have to carry on there. The charges do sound excessive. Seems like he styles himself on fees a letting agent would charge.
    I can understand referencing and credit checking the newcomers but I charge nothing for a renewal and do not do ongoing checks - paying the rent is enough.

    Freedom at the point of zero............


      Things to remember...

      This is a totally new tenancy.

      You can retain the old tenancy and not sign a new agreement - but the 2 departing tenants will remain liable until that tenancy ends.

      If you do not sign agreement, the landlord has the right to evict you using the section 21 process.

      If you are being credit checked again, thatmay be because he has rent-guarantee insurance which demands all tenants are credit checked when a new tenancy comes into being - maybe?

      I can't see why the newcomers need to pay a renewal fee - what are they renewing?

      So... Yes the fees seem steep, but there is no legislation to prevent this.

      You either smile and pay up; or
      You don't and risk eviction etc.

      Best to try a bit of negotiation first though.


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