Tenant is Replaced Early in the Tenancy, Agent Fees?

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    Tenant is Replaced Early in the Tenancy, Agent Fees?

    I am a landlord. My Letting Agent signed up a new tenant for me in February for an 18 month lease. The Agent's fees were to be paid monthly out of the rental income. Within two months the tenant went into arrears and was asked to leave which he did. In order that we could re-let, the Agent arranged a release document which absolved the tenant from further obligations. Quite quickly, the Agent, all credit to him, arranged a new tenant (at reduced rent given the economic climate).

    The Agent is now seeking the full fee I would have paid for the initial tenant (whilst charging a fee for the new tenant). Given the release agreement I have no recourse to the outgoing tenant.

    On studying my agreement with the agent I can see an interpretation which allows this. That said, it does not seem reasonable. I can absolutely see the need to make good any loss the agent has but this outcome goes well beyond that.

    Is there any custom and practice relevant to this situation? Any advice about how I could proceed to get a reasonable outcome?

    Any views appreciated, thanks.


    #2
    I think I'd decline the agent's kind offer to give them double their income and see if a sensible accommodation can be found.

    My agent charges me a monthly fee from the rent and I pay an additional amount when a new tenant moves in - to cover their marketing costs and because that's when most of their work happens.

    That kind of arrangement seems to avoid a number of stresses in landlord/agent relationships.
    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


      #3
      Presumably agent wanted 18 months? Next time 6 or less.
      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
        I would also get rid of this agent as soon as the contract allowed.

        Comment


          #5
          Need to weigh the options carefully, the Agent found a new T quickly so both you and the Agent still obtained money, the Agent quickly got rid of the old T before the arrears became too large. The alternative could have been much worse with an inactive agent, whereby the old T stays put and builds up the rent arrears. Hope the new T is still making the property viable.

          Comment

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