Tenancy renewal

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    Tenancy renewal

    Hello,

    I am a new landlord, have been renting out my property for less than a year so please bear with me! I have looked into old forum postings so as not to duplicate the thread but couldn't find anything close to my situation!

    The estate agent has been fully managing the property for last year, they advertised and found the tenants. The tenancy is due for renewal, the current (same) tenants want to extend for another 6 months BUT they are not are not keen to go ahead via estate agent. The tenants seem like good people and I think I can manage the tenancy myself from now on.

    I haven't been entirely happy with the estate agent myself but the agent says I'll be liable to continue to pay the current fees as per their T&Cs (as below), even if I do a private contract with current tenants because these tenants were introduced by the estate agent.


    (1) Either party may terminate this agreement by giving the other 60 clear days prior written notice of termination. Following termination the Landlord remains liable to pay to estate agent the amount of any fees due under clause (2) for any remaining term of the tenancy in question, together with other fees due. The full amount of such unpaid fees is due and payable at the date of termination and estate agent can set off the amount of such unpaid fees against any monies owed or to be paid to the Landlord by estate agent



    (2) By agreeing to purchase the Full Management and/or Rent Collection service (as set out in this agreement) the Landlord agrees to pay to estate agent fees at the rate set out in the Confirmation of Marketing. If the Landlord terminates this agreement in accordance with its terms prior to the expected termination date of the original tenancy and any extension in question (including the remaining term of any periodic tenancy) they will remain liable to pay to estate agent those fees due for Full Management and/or Rent Collection for the remaining term as set out in the Confirmation of Marketing. For tenancy terms of less than 12 months, a minimum of 12 months fees will be chargeable


    What are my rights here? Can I challenge the estate agent, end the current contract at it's expiry and do a new private contract directly with the tenants?

    I don't really want to get into any legal hassle if that would be the case if I go ahead and do a new private contract, just want to know what are my rights and that estate agent is not misleading me.

    Many thanks for the patience and I would appreciate any comments from experienced landlords on here.

    Best wishes

    #2
    This is a really common question on here

    If you signed the contract them you are bound by the terms of it. It was for full management I expect the agent has been carrying out tasks for his money - I presume so? Unless he has breached the contract in some way you cannot really challenge him. Give notice as the contract asks then you are free of the agent.

    It is very easy when all is going well to assume all tenancies will be like this - not always the case. There maybe times in future when you wish you had a good agent.

    BTW your tenants don't have to enter a new contract - you can quite legally let the existing contract go 'periodic' which means it rolls on a month to month basis. The tenants would have to give you 1 months notice and you give them 2 months notice if you want possession. The agent cannot force the tenants to sign any new contract and that means the original one is in force.



    Freedom at the point of zero............

    Comment


      #3
      Thank you.

      The agent did the initial tenant introduction & background checks, been doing the rent collection and the periodic property visit reports. At times when some work was needed doing at the property, the tenants contacted me directly & I got it done to get some real experience of "landlording!"

      If I give the notice, surely the tenants have to move out and I'll have to find new tenants? If I give the notice to end the contract at its maturity and the same tenants continued living there with a new contract directly with me, will I be breaking the T&Cs as above and still liable to continue paying the full management fees?

      If the tenancy goes periodic, does that mean myself & tenants don't have to pay the renewal fees/ charges etc to the agent? I have a joint contract with more than one tenants and one of them wants to move out to be replaced by their friend and that's the peculiar problem I have to let it run into periodic tenancy!

      Thanks again for taking time to reply, much appreciated.

      Comment


        #4
        If you try to re-let to same tenants after evicting or ending agreement you still pay the agent.

        If you get shot of tenants and get totally new ones yourself without an agent you are free to do as you wish.

        If the tenancy goes periodic the tenants cannot be charged another fee by the agent but they will have to resist strongly his probably persistent requests to renew - it is fine to do that.

        Do you actually pay a renewal fee on top of your usual charges? That seems a bit steep - in theory no you need not do that.



        Freedom at the point of zero............

        Comment


          #5
          That makes it clear, thank you.

          Yes there is Extension Set Up Fees (production of extension tenancy agreement) of £120 to be paid by each the landlord & tenant!

          Comment


            #6
            Please complete & paste http://www.landlordzone.co.uk/forums...ll-new-posters

            Give Agent due Notice in accordance with the LA/LL Agreement (Terms of Business) you agreed to.

            Comment


              #7
              (2) By agreeing to purchase the Full Management and/or Rent Collection service (as set out in this agreement) the Landlord agrees to pay to estate agent fees at the rate set out in the Confirmation of Marketing. If the Landlord terminates this agreement in accordance with its terms prior to the expected termination date of the original tenancy and any extension in question (including the remaining term of any periodic tenancy) they will remain liable to pay to estate agent those fees due for Full Management and/or Rent Collection for the remaining term as set out in the Confirmation of Marketing. For tenancy terms of less than 12 months, a minimum of 12 months fees will be chargeable

              The above has to be an unfair term.

              Comment


                #8
                It is indeed unfair!

                Comment

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