can estate agents charge us not to renew a tenancy agreement?

[kveta]

We've been in our rental property for 18 months, and initially had a 6 month contract as the estate agents don't offer 12 month ones. At the end of the 6 months, we paid 50 quid to have a 12 month tenancy agreement, but received no paperwork, so were a bit miffed by the fee. However, we had a newborn at the time so didn't put any effort into complaining.

We've just received a letter telling us to either renew a fixed term tenancy agreement for 50 quid + VAT or don't renew but don't move out (so a month to month rental) for 25 quid + VAT. The 25 quid fee is new since last year.

Is this an acceptable fee when we get nothing in return? If not, do you know how I could go about challenging the estate agents?

Thanks :)

L&T Lawyer here, whilst there would be no legal requirement to have a new tenancy drawn up it would give you a bit more security of tenure. I.e no s.21 (2 month) notice to expire before end of fixed term - or break clause. But obviously you will also be tied in.

I think it is pretty fair for the agent to charge for a new agreement - just pester them to make sure you geta copy! but think the 25 charge for no renewal is a bit .

Are your agents members of ARLA? If so you could contact them to ask their thoughts, If not I would go to the lettings manager and ask them for the basis for this charge. Ask them to point to the terms of the contract that allow for such a charge to be made.

Good luck

thanks stoppingat3 - will go and question them tomorrow :)

Most Estate Agents do not charge a fee for signing tenancy contracts.