Hi, I recently signed a contract for a room in a share house, paid deposit, advance rent etc via OpenRent. due to personal reasons, I decided not to move in which I informed landlord & we agreed to go for deed of surrender/ early termination. I signed the documents. The landlord said, I (tenant) have to pay £79 as Tenancy Creation service charge as that room is again going back to market via OoenRent & Open rent asks for £79 tenancy creation fees per room advertised. she paid the same when I signed in the contract assuming I will be moving in. Now if she pays it again (as I am not moving in), she will be the charged twice within small span of time. My first question is, in such situation am I legally bound to pay the tenancy creation fees, even if I never moved in to the property? Secondly am I entitled for any deed of surrender/ early termination fees? Thanks
It’s you who asked to end earlier. Why on earth would you be ‘entitled’ to anything? LL will be out of pocket having to pay to find new tenant, create new tenancy, lost rent in the meantime etc. So of course you can expect to have to pay. LL could have insisted you gave 2 months notice and paid 1st two months rent as per your contract. They have actually been very generous to you. And yet you feel you should be entitled to more.
Look at ‘tenancy fees act guidance for tenants’ which explains exactly what you can be expected to pay. Normally 50 quid for contract changes or reasonable costs if LL can evidence more. Try contacting any solicitors and ask how much a deed of surrender costs - doubt youll find one for under £79 and many solicitors will charge very much more.
Good luck
Hi David. Thanks for your reply. Sorry I am new in the UK housing market. I checked her messages & she meant tenancy creation fees £79. The landlord said, I (tenant) have to pay £79 as Tenancy Creation service charge as she paid the same when I signed in the contract assuming I will be moving in. Now if she pays it again (as I am not moving in), she will be the charged twice within small span of time. My question is, in such situation am I legally bound to pay the tenancy creation fees, even if I never moved in to the property? Thanks for your help
Legally the fees you can be charged for are set out in the guide i mentioned. They can charge for financial loss you have caused
Guidance says
" Payments when you end the tenancy without giving the correct amount of notice
If you give less than the minimum amount of notice to end the tenancy, your landlord can require a payment. This cannot be more than the amount of rent due until the minimum notice period ends (2 months starting on the day rent is due).
You can talk to your landlord and ask for a shorter notice period."
See also
"
Early termination charges
If you ask to leave your contract before your agreed notice period ends, the landlord does not have to agree. If they do agree to let you break the contract early, they can charge you an early termination fee. This fee covers the financial loss the landlord suffers because you are leaving early.
The landlord can legally ask you to cover the rent until a new tenant moves in, as well as the reasonable costs they incur to find that new tenant. However, the total early termination fee cannot be more than the total amount of rent you would have paid if you had stayed for your full notice period."
If all you have to pay is 79 quid not 2 months rent as per your contract commitments, you have got a very good deal tho havent you?
LL has allowed you to escape an obligation for 2 months rent at considerable cost and inconvenience which will be way more than £79. Why do you think you should pay nothing?
Best
Yes, the landlord is allowed to charge you their costs under these circumstances, but must refund you the rent and balance of the security deposit. They would also be entitled to claim the holding deposit if you paid one
Yes, the LL is entitled to the 79 quid.
You are lucky that he isn’t me. I would’ve made you pay your notice period.