Letting agency fees at renewal

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    Letting agency fees at renewal

    Hi there,

    I hope someone can offer some advice on the following situation with the estate agency who originally found my tenants but who is not managing the property.

    I rented out the property to 3 people, 2 of them have already changed (found by the other tenants and reference-checked by me, but signed up to the original contract with the agency) and the 3rd person will be leaving when the current contract ends. The other 2 would like to stay and find a new 3rd person. This means that none of the 3 will be the original tenants found by the letting agent. Does said letting agent still have a right to receive a finders fee? Or do I have the right to start a new direct contract with the tenants once the current year term has finished?

    Any thoughts would be appreciated.

    #2
    It sounds like a complete mess, but what does the agency agreement says with your LA as to what fees are payable to it under what circumstances?

    Comment


      #3
      Originally posted by vulcano View Post
      Hi there,

      I hope someone can offer some advice on the following situation with the estate agency who originally found my tenants but who is not managing the property.

      I rented out the property to 3 people, 2 of them have already changed (found by the other tenants and reference-checked by me, but signed up to the original contract with the agency) and the 3rd person will be leaving when the current contract ends. The other 2 would like to stay and find a new 3rd person. This means that none of the 3 will be the original tenants found by the letting agent. Does said letting agent still have a right to receive a finders fee? Or do I have the right to start a new direct contract with the tenants once the current year term has finished?

      Any thoughts would be appreciated.
      As you will need to draw up a new tenancy agreement when one of the tenant leaves, I would suggest this is not something that involves the agency. You could do you own tenancy; there are some good free ones on the internet that you could amend to suit, but if you are a bit of a novice at this try the RLA (www.rla.org) where you can download one for £5 without having to join them.
      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

      Comment


        #4
        Originally posted by Paul_f View Post
        As you will need to draw up a new tenancy agreement when one of the tenant leaves, I would suggest this is not something that involves the agency. You could do you own tenancy; there are some good free ones on the internet that you could amend to suit, but if you are a bit of a novice at this try the RLA (www.rla.org) where you can download one for £5 without having to join them.
        It is not the fact that a new contract must be drawn up which means the agent can be disinstructed, but the fact that none of the original tenants is staying on in the property. Otherwise the agent may well come out of the woodwork and demand his 'cut' on the grounds that at least one of the tenants he found was renewing.
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

        Comment


          #5
          It is not the fact that a new contract must be drawn up.
          But as it's extremely messy I would think that is easily the best course of action; there was no need to go into lots of detail, and would you advise the L to be doing otherwise?
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Originally posted by Paul_f View Post
            But as it's extremely messy I would think that is easily the best course of action; there was no need to go into lots of detail, and would you advise the L to be doing otherwise?
            I do not disagree that it is the best course of action in the circumstances. My point was rather that had the tenants not changed completely, the mere fact of using one's own or the RLAs contract (rather than the agent's) would not stop them (ie the agents) claiming their renewal fee if their contract with the LL included such a clause and they were minded to enforce it.
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment


              #7
              Originally posted by mind the gap View Post
              I do not disagree that it is the best course of action in the circumstances. My point was rather that had the tenants not changed completely, the mere fact of using one's own or the RLAs contract (rather than the agent's) would not stop them (ie the agents) claiming their renewal fee if their contract with the LL included such a clause and they were minded to enforce it.
              That's rather overcomplicating the matter.
              The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

              Comment


                #8
                and make sure you re-protect any deposit that is held with the new dates and correct tenants names also.

                Comment


                  #9
                  Originally posted by Paul_f View Post
                  That's rather overcomplicating the matter.
                  Unfortunately that would not be a defence in the event the Agent came chasing after their "fee", which seems to be a legitimate concern, regardles sof how complicated the surrounding facts are.

                  Comment

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