Updating post from Reddit.
So the estate agent want £850 to print a renewal contract for ne to sign...or they said I don't have to and the contract can become a rolling contract with some disadvantages. I don't want to hand over £850 for ten sheets of paper...who sorts out the "monthly rolling basis" paperwork? Is there any?
£850 is insane! My high end EA only charge £150 and that’s a rip off. Just let them go onto rolling.
There is no paperwork for the monthly rolling basis aka a periodic tenancy.
It just continues on the same terms as the existing tenancy.
Advantages are that you can give notice if required, and not spending £850
Only disadvantage is that your tenant can give you notice.
I would not be spending £850 on this. It's basically just a good way for your agents to make money.
I agree totally with this comment - let it move to rolling periodic tenancy - I let mine go to periodic after the initial term.
I think is both good for the Landlord and the Tenant - I know that both sides can give notice at any time - 2 months for the Landlord and 1 month for the Tenant but it gives flexibility to both sides if situations change. If you have a property which will let as soon as it goes on the market then changes in tenants should not create any long void periods.
You can still change the rent on the anniversary of the Tennacy and that may need a form from the letting agent which they usually charge for :(
Especially given the renters reform bill is likely to come in within 12 months so there’s a chance the tenancy will be converted to periodic before the fixed term is up in any event
Renters reform bill coming next year, so there might be no point.
850 is way to much.
You may also want to set any rent increases now.
That’s a lot of money for a renewal fee. Are you sure they don’t mean the new rent will become £850?. Some of largest high street estate agents only charge up to £180 for a tenancy renewal. You would be better off to let the contract roll onto a periodic basis. Speak with your tenant and find out their future plans, if they’re willing to stay and don’t have any changes coming up then rolling contract would be best, you’ll avoid the ridiculous fee. £850 could be used to find another tenant for the property..
Thank you.
You don't need to sign anything. It'll automatically become rolling.
I imagine that's probably what the EA also want to happen for that kind of price. They have priced it so that people don't pick a new one.
Thank you.
Read your existing contract, it should state the terms of what happens at the end when it moves to a rolling basis. Short version though is if you are happy with the notice periods and amount of rent, probably not worth the price.
Change agents.
I can do it for you for £100
Just do the contract yourself! It doesn’t have to be an estate agent. You can go to the site Open Rent and they offer a product “ tenancy creation that includes contract! And cost £50. But I would just do it yourself for free!
Great... the estate agent said if I do that, the tenant might give up paying the council tax and I would be liable ...they said also that some mortgage lenders won't allow rolling contracts...are these just scare tactics??
Yup. Tenants are still responsible for council tax without a letting agent.
Don’t listen to agents, they are after quick money. From summer most contracts will be rolling once the Renters Bill is in place. Then you will have challenges getting possession of your property, so you might want to research this topic and see if you want to continue renting. And if yes, you should def consider increasing the rent as a lot more new expenses are coming landlords way…
Thank you.
Mine costs £150 (which I think it a rip off but then steal at locks in another year). 850 cannot be correct - you need to call them and argue this - ridiculous amount of money
Agents do not seem to know what agency means. Neither do landlords.
As a tenant, the EA will push the tenant to request a new contract as well! Be aware of that. They want to avoid losing out on £850 so if they can't push you, they will try the other end.
My letting agent charged me £15 plus vat for agreeing a new tenancy with my tenant in February.
It's literally one press on send and 2 electronic signatures. They get extra management charges as the rent went up.
From 1 June 2019, when the Tenant Fees Act came into effect, it's illegal for a letting agent to charge you fees when you rent a new property, or renew your tenancy.
My agent charges £95 inc VAT
I thought letting fees were capped now.