Hi all,
Just come to the end of the 12 month letting contract and plan to let it automatically become monthly. Letting agent have charged £250 +vat to allow it to default to monthly, is this right? What work have they done for the £250?
‘‘Our fees for the renewal is £250 +VAT and this stands also with a periodic fee however you will need to pay £250 +VAT and an additional £60 if you wish to have a rental increase within a monthly rolling contract via a section 13.’’
Thanks in advance.
What are the terms of the contract you signed with them? Charging for letting it go periodic is atrocious practice, but if you signed terms with them that state this, you are contracturally obliged.
You can serve the S13 yourself and it will cost you nothing. It’s not hard to do.
An annual tenancy renewal is just a means for letting agents to charge fees. It is likely that they will have something in their contract that states that they still get the fees whether you renew or let it go periodic. This could be an unfair term in the contract which would need to be challenged. Citizens Advice may be…
It is illegal for agents to charge fees if a contract rolls onto periodic and they did nothing. There is case precedent.
David Smith advised on a webinar last year tell them this and tell them to take you to court if they want their fees. They will lose
[Foxtons: hidden fees in lettings agreements with consumer landlords]
Office of Fair Trading (OFT) closed consumer enforcement case.
On 25 February 2008, the Office of Fair Trading (OFT) issued High Court proceedings against Foxtons Limited under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs). The OFT sought a declaration on the application of the UTCCRs to certain terms in Foxtons lettings agreements with consumer landlords. The OFT also sought an injunction against Foxtons preventing it from using the terms in future contracts.
I agree. This is not a charge your agent is allowed to make. Challenge it now.
Thanks for the reply’s, had a look at foxtons and that seems to be around not making clear the fees at the start. In this case this fee is clearly outlined in the contract. I have spoken to a few other local letting agents and they do not charge for going periodic, and my current letting agent can’t explain to me what work they have performed to justify the charge. So does seem an unfair charge to me but it’s in the contract so lesson learnt won’t be using this agent again.
We actually know the tenants so are thing about managing this property ourselves and giving the letting agent their notice.
What is the wording of the clause?
That’s the key
They have to stipulate certain terms and I’m guessing they have not so you can challenge it
Just because there is a clause does not make it legal so you may not have any obligation to it !
The only people that will have it worded correctly are foxtons
Putting a lot of faith in a letting agency with a somewhat dubious track record there 
I think you’re giving up too quickly. Just because its in the contract doesn’t mean its enforceable. If a court/tribunal ruled that it breached the Unfair Terms in Consumer Contracts Regulations 1999 then the agent could not collect it. I would be inclined to write to the agent stating that you believe that the clause is a breach of those regulations and see what they say.