Renegotiate Rate with LA

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    Renegotiate Rate with LA

    Hi,

    I purchased my first BTL property just over 12 months ago and it has been let for 11 months. I currently pay the letting agent 10%+VAT for rent collection only. The tenant is happy in the property but doesn't want to pay a fee for another fixed term - and neither do I, so we've agreed it will just go into the monthly rolling periodic. The property is let for £925 a month.

    However I feel after 12 months of having the same tenant I should renegotiate with the letting agent. They work they do is currently sending me the money each month alongside a monthly electronic statement.

    The rate is competitive (it is a village area so there are limited agents), after getting quotes from three agents in the area. They weren't the cheapest, but not the most expensive. I have a 2 month cancellation notice period.

    Am I being realistic? I was thinking at going in at 6%+VAT, but would agree to 7% or 8%.

    #2
    Why have an agent at all if all they do is collect the rent? Have a look at your agreement, sometimes you can't cancel while the same tenant is still in the house.

    Comment


      #3
      Thanks Roy. The agreement also included tenant find, which on it's own would be the equivalent to 6 months commission (due to a large landlord set up fee..). As this is my first BTL property I thought I would do it this way to get into the swing of things.

      I don't plan to for future tenants.

      There is nothing in the contract that means I cannot cancel when tenant is still in contract.

      "The client has the right to cancel this contract within 14 days of commencement of marketing if this is not signed in our offices. The contract can be cancelled by informing our office in writing of your wish to cancel. Level of service can be changed with 2 months notice on the basis that our minimum fee has been met."

      Comment


        #4
        That clause only applies to the first 14 days of the contract and has therefore expired.

        There will (hopefully) be an actual termination clause somewhere.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Originally posted by jpkeates View Post
          That clause only applies to the first 14 days of the contract and has therefore expired.

          There will (hopefully) be an actual termination clause somewhere.
          No that is it.

          My interpretation (which may well be wrong), is that my level of service can be changed from rental collection to nothing with two months notice.

          Comment


            #6
            Originally posted by Lokolo View Post
            My interpretation (which may well be wrong), is that my level of service can be changed from rental collection to nothing with two months notice.
            Is the final sentence you quoted part of the same clause as the first two sentences?

            Depends what "on the basis that our minimum fee has been met" and "level of service" means.

            Presumably, the answer lies elsewhere in the contract.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Originally posted by jpkeates View Post
              Is the final sentence you quoted part of the same clause as the first two sentences?

              Depends what "on the basis that our minimum fee has been met" and "level of service" means.

              Presumably, the answer lies elsewhere in the contract.
              The text is verbatim. Nothing else in the contact about cancelling. Should have been something I brought up before signing.

              The minimum fee isn't even stated in the contract. And the 3 levels of stated service; tenant find, rent collection, full management.

              When the current tenant leaves I will be looking at my options, but I suspect it won't be for a while.

              Comment


                #8
                Well, an infinite contract is likely to be unenforceable, because in order for you to enter into a binding contract you have to know what you're committing to, and, from the sound of it, that's impossible,

                If those are the three levels of service, you can switch between them, but not to "no service". But switching to "Tenant Find" might be interesting, as they'd have nothing to do...

                I'd talk to the agent about what notice you need to give, or serve them six months notice and see what they do.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment

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