Can a Letting Agent Charge to Renew a Contract
As a tenant, it can be frustrating to receive a notice from your letting agent asking you to renew your contract and pay a fee for doing so. But is it legal for a letting agent to charge a fee for contract renewal? Let’s take a closer look.
In short, the answer is yes, a letting agent can charge a fee for contract renewal. However, there are several things to keep in mind. Firstly, the fee must be reasonable and proportionate to the work being carried out by the letting agent. Secondly, the fee must be clearly stated in the tenancy agreement or in a separate written document provided to the tenant. Finally, the fee must not be hidden or disguised as a different charge.
It’s important to note that the Tenant Fees Act 2019, which came into force in England on 1 June 2019, has placed strict limits on the fees that letting agents can charge tenants. The Act bans most fees charged to tenants, including fees for referencing, credit checks, and inventory checks. However, it does allow for certain fees, including the renewal of a tenancy agreement.
In Scotland, the rules are slightly different. The Letting Agent Code of Practice (Scotland) Regulations 2016 state that letting agents must provide a written statement of fees to the tenant before any fees are charged. The statement must clearly state the amount of the fee, what the fee covers, and when it is payable.
It’s worth noting that some letting agents may try to charge fees that are not allowed under the law. If you believe that you have been charged an unfair fee, you should contact your local Citizens Advice Bureau or a housing charity for advice.
In conclusion, letting agents can legally charge a fee for the renewal of a tenancy agreement, as long as the fee is reasonable, clearly stated, and not disguised as a different charge. However, with the introduction of the Tenant Fees Act 2019, letting agents are now subject to stricter regulations regarding the fees they can charge tenants. If you have any concerns about the fees you have been charged, seek advice from a reputable source.
