Rent increase and renewal fees

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  • Rent increase and renewal fees

    Hi, I have today had a letter from the managing agents to inform me that the rent is being raised from 27th November and there is a administration charge of £36 for drawing up the fresh AST paperwork.

    Is this fair ?

  • #2
    Are you landlord or tenant? What does your agreement say regarding payment of landlords costs?
    [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

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    • #3
      mr

      I am the tenant, and have read the agreement and can't find a mention of increases.

      The way I am looking at it is, the agent/landlord has requested a raise and it's reasonable, going from £595 to £615 but I don't see why I should pay the renewal fee.

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      • #4
        Suggest that you are happy for the increase and to continue renting but you want to do so on the basis of a periodic tenancy. The agent can only charge you if they are actually preparing an agreement.

        If they insist on a written renewal then tell them, and the landlord, that you would rather leave than pay the £36 - I bet they'll change their minds. The property only needs to be empty for two days and he's already lost more than £36 in rent.
        My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

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        • #5
          mr

          Thanks for that reply. Does it not need a new agreement then if the rent has gone up ?

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          • #6
            Is your current tenancy coming to the end of it's fixed term?

            If so, you have a choice. At the end of the fixed term you can either:

            1 - Agree a new contract - which seems to attract a fee - although I would argue the fee is unenforceable.
            2 - Stay on the current contract at the same rent on a month by month basis (see section 5 of the 1988 Housing Act)
            3 - leave

            If you choose '2' the landlord can increase the rent by serving you with a section 13 notice.

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            • #7
              mr

              Thanks for your reply, we have been on contract since feb 2009 so are on periodic.

              What I am asking is, if the rent is being raised does there have to be a new agreement drawn up ?

              Also if we are served with a section 13 notice does that suffice as a new agreement ?

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              • #8
                Originally posted by bobbybobster View Post
                What I am asking is, if the rent is being raised does there have to be a new agreement drawn up ?
                No. You and your landlord can mutually agree to a new rent, or your landlord can serve a Section 13 to raise the rent.



                Originally posted by bobbybobster View Post
                Also if we are served with a section 13 notice does that suffice as a new agreement ?
                No. A Section 13 is used to raise the rent during a periodic tenancy.

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                • #9
                  I suggest you read the information on the Governments website www.opsi.gov.uk which will tell you how the S.13 (Form 4B) operates and how you can appeal. There's almost certainly guidance on this website too so use the search facility or look on the home page.
                  The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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