Leaving my house and arrangement Fees

Tenant Discussion
1

Hi There,- I am looking for some advice, everything online seems a bit contradictory.

I am looking at leaving my house after a year and four months. My estate agent is asking for a series of fees for me to leave the contract.

For context, I live with four other girls (five inc me) who are staying in the house. We signed a new contract in feb to represent the increased rent cost (a previous girl also left at the year mark when the costs changed so new girl signed on at the same time).

I have given two months notice.

They are trying to charge me for three things before I leave. (Not including what they potentially take out of my deposit)

  • Contract change £50
  • £130 referencing cost for the new girl, charged to me.
  • £100 for a replacement wardrobe that broke, due to the mold making the wood pretty fragile. (I asked for it to be removed when I moved in, as it was already broken and moldy then but the landlord said I would have to pay so I left it) Outside of my deposit check.

Do they have grounds to charge me for all of these?? It sounds like I will have to pay at least the contract change.

2

Hi, There are plenty of well informed legal eagles on this forum, i’n not one of them , But:

Are all these charges written down in your contract or in a notice that all tenants received ?

Was the agent transparent in displaying the charges or otherwise informing you at the time you signed the contract.?

Was an inventory done at the time of your move in for your room furniture and communal furniture if any ? and was it noted that the wardrobe was failing at that point? And Mold ?? that rings alarm bells that the house is potentially not a habitable HMO?

The Girl who left in Feb, what did she get charged, was it the same contract fee and referencing?

Referencing fee seems high, does it actually mean advertising for, sifting of and referencing a new tenant?

Which is more involved and costly perhaps.

Best.

3

… as is your right to do under the Renters’ Right Act. However, this will end the tenancy for everyone and the agent will need to create a new one either with the remaining four or with a replacement that you are under absolutely no obligation to find.

They cannot charge any tenant including you for the contract change or the referencing cost. That is illegal under the Tenant Fees Act.

Do you have an inventory that lists the wardrobe and its condition? If not, then you can dispute the charge when they attempt to claim it from your deposit and they will not be able to prove it has been damaged by you and you should be fine.

4

Try this guidance on tenancy fees act

Source: GOV.UK https://share.google/QWfadqsSGNHG4XcA3

Referencing is definitely illegal. Contract change ok.

Damage not unless they prove happened during tenancy

5

Hmmm… I wonder if this is an ambiguity because of the RRA. Previously, fixed terms meant that a change of shared tenancy would require someone leaving to find a replacement because the tenancy had to continue until the end of the fixed term. Now, anyone in a joint tenancy can give two months’ notice at any time and cause the tenancy to be continually ended and a new one begun. In these circumstances, it hardly seems fair to charge the £50 for a “change of tenancy” when the tenancy is actually ending and a new one beginning.

In any case Eleanor, if you find someone to replace you, the guidance David has linked to states that they would not be justified in charging you this.

2 Likes
6

This is one of the things that landlords have been complaining about since the Bill was published. In a joint tenancy there could in future be much more turnover of tenants and much higher costs for landlords as agents would not be allowed to charge anything to the tenants as theyre just exercising their statutory right.

1 Like
7

Hello, are you in Student accommodation. I believe that the rules may be different in designated student accommodation.

1 Like
8

Thanks Tate,

I will check out the link from David :slight_smile:
I have found a replacement for the room who is a friend of a friend, So the estate agents do not have to find a replacement.

9

Hi David,

Thanks for the reply!

This doc says ‘Generally, the costs charged for early termination must not exceed the loss incurred by the landlord (usually the loss in rent resulting from your decision to leave and/or the costs of re-advertising or referencing), or the reasonable costs to the agent (such as referencing and marketing costs).’

and

‘However, they could reasonably charge a fee to cover any referencing and advertising costs that they have incurred because of you leaving early, but they should be able to provide evidence to demonstrate these costs.’

Would this make the referencing legal right?

10

The clause you’re quoting has now largely been superseded by the RRA. The tenant can give 2 months notice without penalty.

1 Like
11

@Eleanor21 dont think so - because you havent ‘left early’ and there’s no ‘early termination’ - instead you have given the 2 months notice required, and are paying the rent for the final 2 months?

If you were leaving earlier than the 2 months notice, then yes I think under this guidance they could potentially charge for referencing, but as they would have faced the same costs anyway [had you served out the 2months notice and they referenced a new tenant], you might say they havent incurred additional costs because you moved early. Not sure which way the Tribunal/a judge would rule on it, you could ask Shelter or legal advice whether there are any precedents. Referencing via Openrent is £30 so if they try charging much more than that they’d need to justify why. £130 sounds a lot.

good luck

1 Like
12

Hi all,

Thanks for your replies. Does anyone know of this information being written down anywhere? I have received this reply from my estate agents.

'I can confirm that the fee for the replacement tenant’s referencing, Right to Rent and Anti-Money Laundering checks is £120.00 inclusive of VAT. Please find attached a copy of the landlord’s statement showing the charge incurred for these checks.

Under Schedule 1, Paragraph 6 of the Tenant Fees Act 2019, where a tenant requests a variation, assignment or novation of a tenancy, a landlord or agent may charge up to £50, or a higher amount where the charge reflects the reasonable costs incurred as a result of the tenant’s request.

As this is a tenant-requested change to the tenancy agreement, the costs incurred in processing the replacement tenant application are recoverable where they are reasonable and evidenced. In this case, the landlord has incurred a charge of £120.00 inclusive of VAT for the replacement tenant’s referencing, Right to Rent and Anti-Money Laundering checks.

In addition, there is a £50.00 inclusive of VAT tenancy variation fee to cover the preparation and execution of the tenancy variation documentation and updating of the tenancy records.

Accordingly, the total fee payable to proceed with the change of tenant is £170.00 inclusive of VAT.’

13

Have you contacted Shelter or Citizens’ Advice to ask them? I’d be interested to see what they say.

Under the RRA, you have the right to leave any tenancy agreement without charge at any point. There are no fixed terms. It doesn’t matter whether the tenancy is a joint tenancy or not. I don’t see how these fees are justified particularly because you found a replacement, but I’m not a lawyer and we are in somewhat uncharted waters here with the RRA being so recent.

1 Like
14

@Eleanor21

Erm it’s written clearly in the Tenancy Fees Act guidance

"The only payments in connection with a tenancy that you can be asked to
make are:
<>
• payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
• payments associated with early termination of the tenancy, when requested by the tenant
"

also

"Q. Can a landlord or agent ask me to pay a check-out fee at the end of a tenancy?
No. A landlord or agent cannot charge you for any services connected with the termination or ending of a tenancy. If the tenancy was entered into before 1 June 2019 and you agreed in your contract to pay exit fees, such as check-out or inventory fees, then a landlord or agent could only charge these fees up until 31 May 2020. Since 1 June 2020, the term requiring that payment is no longer be binding on you.
"

Also

.
"Q. Can a landlord or agent charge me a fee for a change of sharer?

Yes. Where you request a change of sharer, a landlord or agent is entitled to charge you for any costs incurred for amending the tenancy agreement up to £50 (inc. VAT), or for any reasonable costs incurred if these are higher than £50. The general expectation is that this charge will not exceed £50. In some circumstances, it may be appropriate for this to be higher. In any case, a landlord or agent should be able to demonstrate to you that any fee charged above £50 is reasonable and provide evidence of their costs. You should ask your landlord or agent to provide evidence in the form of receipts or invoices. Any costs that are not reasonable are a prohibited payment.

Note: A landlord or agent cannot charge you for any changes to an agreement before it is entered into, for example, if you request to remove specific clauses or provisions from a tenancy agreement before it is signed.

Q. I have found a suitable replacement tenant, can the landlord or agent still charge more than £50 for a change of sharer fee?

It is unlikely that a landlord or agent could justify charging a fee above £50 in this circumstance. The costs involved in referencing the replacement tenant, re-issuing the tenancy agreement and protecting the tenancy deposit should be small. You
could also offer to obtain such a reference voluntarily (a landlord or agent cannot require you to do this though) to further reduce the costs incurred by the landlord or agent. There are a number of third-party organisations which will carry out
professional referencing checks for you at a small cost – for example, a full tenant reference check can cost up to £30. A landlord or agent should be able to demonstrate to you that any fee charged above £50 is reasonable and provide evidence of their costs. You should ask your landlord or agent to provide evidence in the form of receipts or invoices. Any costs that are not reasonable are a prohibited payment."

All in the guidance

https://share.google/QWfadqsSGNHG4XcA3

  1. As you have given 2 months notice which is the max that can be required by the landlord under RRA, you have ended the tenancy and there is no ‘early termination’ - you have paid up to and including the 2 months (ending the date before a rental period). So they can’t charge anything for ‘early termination’. Think in that case tenancy contract ends so there is no contract change either. The creation of a new contract is a matter between new tenants and LL and absolutely nothing to do with you.

Best

1 Like
15

HI David,

That is incredibly helpful! That makes it very clear.

My estate Agents have given me their final answer which is not budging from their initial request for both the £50 and the £130. So I will be requesting a meeting with the ombudsman annoyingly.

Thanks!

16

Yeah! I will give them a visit soon I recon :slight_smile:

17

@Eleanor21 just repeat to agents that as you have given notice the tenancy has ended so no early termination fees or contracts changes are due. If they wish to try to charge other tenants for a new tenancy agreement that would also be a prohibited fee under the Tenancy Fees Act

You can also point them to RRA updated guidance below and mention that the fine for prohibited payment (1st time offence) is £5000

For your former fellow tenants it will be worth reminding them that as you have given notice the tenancy ends and they will need a new tenancy agreement with the LL otherwise they have no right to stay.

Best

--

Tenant Fees Act amended by the Renters’ Rights Act 2025

Prohibited payments

Landlords or letting agents will not be able to require tenants or any person acting on behalf of a tenant or a guarantor to make specific payments when:

  • arranging the grant of or assigning a tenancy

  • granting a tenancy

  • continuing a tenancy

  • changing or varying a tenancy

  • ending a tenancy

  • a tenant has breached a tenancy agreement

  • giving a reference for a former tenant

Tenants (or anyone acting for a tenant) or a guarantor must also not be required to:

  • take out a loan

  • pay for insurance

  • enter into a contract for a service

This covers any fee or charge related to a tenancy except for those permitted in schedule 1 of the Act.

Tenant Fees Act 2019: statutory guidance for enforcement authorities - GOV.UK Tenant Fees Act 2019: statutory guidance for enforcement authorities - GOV.UK

1 Like
18

All agents have to by law be members of a redress scheme. That’s where you should start. Ask the agents to provide you with the contact details of the scheme that they are part of. They will want to avoid that so perhaps going in to their office armed with the info that David has provided along with your request for the scheme contact details might make them think twice about pursuing this.

If not, write to the redress scheme and take it from there.

By the way, check your contract for what the LL can claim from your deposit. It should state what is allowable. What you don’t want is him trying to deduct these fees from your deposit. That would be sneaky.

19

Provided your notice to quit is valid - in writing, at least 2 months long, expiring on the first or last day of a tenancy period, the tenancy will end for everyone and there is nothing the landlord can do about it. If you havent already, then serve the notice now. The agent is completely wrong about his ability to charge you any fees for you leaving. You can either choose to ignore his message and let him discover the reality for himself or tell him now that he should read s20 of the Renters Rights Act and do some training as a matter of urgency.

1 Like
20

I think it should be valid, I gave them notice in Jan saying I was moving at some point in July and again gave notice start of may.

They sent me this email threatening to take it out of my deposit. Saying they have had this thing happen before.

Are they allowed to threaten this???

This is the email:

Thank you for your email.

I acknowledge your position and note that you have referred the matter to The Property Ombudsman.

The fees requested relate to the costs incurred by the landlord and agent in connection with the proposed change of tenant. As previously advised, evidence of the landlord’s costs has been provided.

For completeness, I should also note that we have dealt with a similar matter previously where a departing tenant disputed equivalent charges after they had been deducted from their deposit. The dispute was referred to MyDeposits for adjudication, and following a review of the evidence provided by both parties, the adjudicator found in favour of the landlord and allowed the charges claimed. Whilst I appreciate that each case turns on its own facts and evidence, it demonstrates that such charges can be considered recoverable where they are properly evidenced and reasonably incurred.

As there is now a formal complaint in progress, I do not believe it would be productive for us to continue debating the interpretation of the legislation by email. We will, of course, cooperate fully with any investigation and provide the Ombudsman with all relevant documentation and information required to review the matter.

In the meantime, our position remains unchanged, and I have noted your comments on file."