Here is a question to the blog clinic from Sam who is a landlord
Our tenants requested that they stay on for another year after their first year at the property which we agreed to and the letting agents sent out revised contracts which were e signed on our behalf by the company and we paid the renewal fee.
None months later we discovered that the tenants never actually signed the new lease so are on a rolling contract and the agency suggested that we chase them up instead.
Are the agency able to charge us for the £3000 renewal fee if they failed to actually get the lease signed or notify us about it? Are we able to get a refund?
The fees that your letting agent is able to charge will be governed by the terms of your agency agreement so you need to look at this and see what is says.
However if your agency agreement provides for the fee to be paid on renewal of the tenancy and it has not actually been renewed, then I can’t see how they can be entitled to charge the fee.
It is up to the agent to arrange for the new tenancy agreement to be signed and they have clearly not done this. Its a bit cheeky of them to suggest that you do it! That is supposed to be their job and they have already been paid for it.
On the other hand the tenants have actually been living at the property and paying rent. But not under a fixed term tenancy. They are legally entitled under a periodic tenancy to give one months notice and leave.
This is a case which will probably turn on the precise wording of your agency agreement but my feeling is that you may be entitled to a refund.
What do our letting agent readers think about this? How do your terms and conditions read on this issue and would you expect or be entitled to be paid in these circumstances?