Terminating guaranteed rent scheme

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    Terminating guaranteed rent scheme

    Hi, I’m a relatively inexperienced landlord in terms of navigating around the legal framework of letting out a house. My house is currently managed by a letting agent under a guaranteed rent scheme- seemed perfect at the time. In recent months the agency has been caught out deliberately misleading me and the tenant, over charging and generally either me or the tenant having to chase them over simple things. Neither myself nor the tenant are happy with their service and I have told the agent I will not be renewing my contract with them.

    The agent has called me to say that under the guaranteed rent scheme the tenant will have to leave the house and that I cannot enter into a contract with the tenant myself. They have said that they will need to inspect the property when it is vacant to release the tenants deposit and they will hand me back the keys at this point.

    Does anyone have any advice to move forward? I want to keep the tenant, the tenant wants to stay. I want the agency out of my life as they cause me more stress than dealing with the tenant and issues myself- which is what I have had to do so I’m not getting the service I’m paying for. I have spoken with the agent on numerous occasions, both verbally and in writing but their service remains poor, in fact it’s got worse.

    Any advice?

    #2
    You presumably have your copy of the lease handy. Is it between you and T or is it in face between you and A?

    Why not agree a 12 month renewal with T (with a break clause in his favour) the day before you cancel with A?

    Comment


      #3
      Agent is lying one way or another about occupant having to leave first (although it would be easier if they did)

      as wfd says, check lease wording.

      STRONGLY suggest you agree nothing with T before ending agreement with agent: Agent might still be entitled to his % compo
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        The Agent has contacted the tenant today and informed her that after my agreement with the agent has expired (end of Feb) that he will be checking the land registry to see if she pays the council tax for the next 6 months (this is the clause in my contract with the A then says I cannot enter in a separate agreement with the T). If she is paying the council tax then he would sue me.

        I will not enter into a contract with the T until after the agreement with the agent has expired. She wants to stay in the property, I would like her to stay because she is a good tenant, but this agent has tried bully tactics with the pair of us- another example of their untrustworthy and insincere behaviour.

        My questions- what is a break clause?

        Once the agreement with the agency has ended can I demand my keys back without them having to inspect the property to confirm it is vacant?

        How will the tenant get her bond back if I don’t allow them into the property to inspect? Is there some legality that says that as long as I’m happy with the state of the property they need to release her bond?

        Comment


          #5
          The Land Registry doesn't have information on council tax and I think the council would be in breach of the Data Protection Act if they provided details of the payer to the agent.

          On the other hand, if you don't know what a break clause is, you probably shouldn't be trying to find loopholes in a draconian anti-poaching clause. You certainly shouldn't be ignoring it just because the breach is difficult to prove.

          Comment


            #6
            Presumably, they want to inspect the vacant property at the end of the tenancy because their contract with you states that they will return the property to you in the same condition as when they took it on?

            So if you indemnify them for any damage, them they have no liability and therefore no need to inspect the property.

            They can return the deposit to the tenant in full. You can then provide the tenant with a new AST and take a new deposit from them.

            There could be flaws in what I have said above. And as you've stated you're an inexperienced landlord, I would stick to what you know if I were you.

            This tenant may be a good one but there are plenty more fish in the sea. Decide what your priority is - ditching an untrustworthy agent or keeping a good tenant. All will follow from that...

            ​​​​​

            Comment


              #7
              You don't need a new tenancy, occupant's tenancy with agent becomes with you, s18 ha 1988

              Not giving new one means easier & quicker to evict
              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

              Comment


                #8
                Originally posted by theartfullodger View Post
                You don't need a new tenancy, occupant's tenancy with agent becomes with you, s18 ha 1988
                I think there is an anti-poaching clause in the agency agreement that prevents him from retaining, or re-letting to, a tenant found by agency.

                Comment


                  #9
                  Don''t think that overrules statute, s18 HA 1988..
                  http://www.legislation.gov.uk/ukpga/1988/50/section/18
                  - so I think their clause is at least suspect.

                  Occupant does not have to agree to any new tenancy.
                  I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                  Comment


                    #10
                    Originally posted by theartfullodger View Post
                    You don't need a new tenancy, occupant's tenancy with agent becomes with you, s18 ha 1988

                    Not giving new one means easier & quicker to evict
                    That says it applies to Assured Tenancies not Assured Shorthold Tenancies as this appears to be.

                    Does it apply here?
                    Refer Mad Regulators to Arkell vs Pressdram.

                    Comment


                      #11
                      Originally posted by midlandslandlord View Post

                      That says it applies to Assured Tenancies not Assured Shorthold Tenancies as this appears to be.

                      Does it apply here?
                      An AST is but a special form of AT. Anything that applies to ATs (eg s8 rent arrears) also applies to ASTs.
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment

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