Can an estate agent take money out of your security deposit for unpaid renewal fees?

[fortheloveofmum]

Hi all, asking this for my Aunt. There has been some dispute between her and her letting agents as to wether she still owes them a fee for a renewal.

They have told her that if she doesn't pay they will just take it out of her security deposit at the end of the tenancy anyway, is this right? I thought that the security deposit could only be used for unpaid rent or damage to the house but I've never rented before so I'm unsure?

No, legally they can't take any of her deposit to cover fees/rent etc.

yes they can.
unpaid rent, utilities etc can be with held.
if your Aunt goes to the TDS she will lose.

Maelstop sorry that’s bollocks they can take it for unpaid rent/fees. It will be in the prescribed information she will have been given

@birdladyfromhomealone hi, yes I knew unpaid rent could, didn't know about utilities but this is neither of those. This is the estate agents own fees.

And agents fees if she hasnt paid them.
She could make a claim with the TDS and let them decide.
If nothing else it will hold her deposit return for a few months.
She should pay it as it could put off other LL from renting to her.

Not sure she will have to check with the deposit people she is registered with. Never dealt with an agent, have heard some shocking stories from tenants though. This renewal thing though sounds like highway robbery to me.

It depends what her lease says ...

However, the deposit is generally held to protect the Landlord and it's held contractually between the two parties to the lease. If the LL has to pay the fees that she doesn't, yes, it can be deducted from the deposit.

If the fees relate to an agreement outside of the lease, no, the agent can't deduct from the deposit.

I would also question any deductions in relation to utilities. The LL wouldn't be obliged to pay a tenant's debt in relation to utilities and if they stepped in to clear these, it would compromise any ability of the tenant to reach an agreement with the utility co. re. payment plans etc.

I did read through all the info she was given and it said that money from the deposit could be taken for unpaid rent or damage to the house. It didn't say anything about unpaid fees, she would normally pay it but I think she has had a lot of problems with them and they have charged her too much for some previous fees which they have admitted but not refunded her which is why she is a refusing to pay this fee as it is actually less then they have already overcharged her if that makes sense.

I would have thought a renewal fee would only apply if the tenancy was renewed? So they offer another 12 months tenancy, with a £100 fee to renew, aunt says no thanks I'll leave at the end of current tenancy, and they can take the £100 from the deposit? Is that right?

Our water utilities say we are responsible from the day the tenant leaves, we have to notify them immediately.

Does she have any communication from the letting agency that confirms she was overcharged and by how much?

If so advise her not to pay any more fees.