Renewal fees & statutory periodic tenancy

[brynleye]

As a landlord I have an assured tenancy agreement which will expire at the end of March . I and the tenants are both happy to allow the agreement to become a statutory periodic tenancy as we are both unsure of our future plans. We are not seeking any changes such as a rent increase etc . Does this mean we can notify the letting agents that we and the tenants are not going to pay their renewal fees ? ( The agreement we signed with the letting agents is for 5 % for renewal although the small print says this covers both renewals and / or extension

[Mortitia]

You would have to quote us the actual wording of the contract to be sure. Since you are not planning a renewal nor extension but allowing the contract to roll on into an SPT then nothing should be payable.

Personally I would do nowt until the agent contacted me or the tenants (unless agent is doing full management then I would contact them as they will debit your account with the fees). Tell the tenants not to re-act to any thing sent by the agent but to contact you.

[Trenners]

Hi

I agree with Mortitia - if you are neither extending or renewing then no agency fee should be due and this should be firmly challenged if the letting agent "chances their arm".

Even if you have a fully managed service - no additional fee should be due .... because no additional work is being undertaken by the agent. Recent case law (against Foxtons in London) supports this.

Additionally, if you decide to RENEW a tenancy then the deposit will need to be re-protected in a Government Deposit Scheme and you will need to pay re-protection fees again! Another reason not to renew!

Mark