Letting Agent's Commissions

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  • Letting Agent's Commissions

    My 3 bedroom property was let out to 3 sharers for one year. The letting agents charged their commission for 12 months up front. At the end of the year, 2 of the 3 wanted to go but one wanted to stay on if possible. I managed to find 2 more people privately who were willing to share the property with the person staying on. There was no need to go through the agents, so we just created an AST contract between us privately. Now the agents are saying that they are entitled to their commission for another year, even though they did absolutely nothing regarding the 2nd year tenancy. Just because one of the tenants introduced by them is still living there, can they demand commission from me?

  • #2
    No-one could answer this question without knowledge of the terms of the contract you originally reached with the agents.

    So refer to the contract first and post the salient bits on here if you need further help.


    • #3

      In my experience i would expect the agent to charge commission for the one remaining tenant but because they didnt introduce the other two i cant see them having a claim over them. it might be worth offering the agent a fraction of the commision for the one remaining tenant if they had nothing to do with the AST but they may ask for the whole lot.


      • #4
        Did you sign a further agreement with the existing tenant?
        For the latest tenancy, did you obtain an AST agreement independently or did you use the one provided by the agent?


        • #5
          Hi Poppy, a new 12 months contract was signed with the 2 new tenants and one staying on tenant. The format of the new contract is totally differant than the previous years contract from the agents.


          • #6
            As far as I know (and I have been advisesd by a legal entity in the past), Agents do not have an automatic right to charge commision on an on-going bases even if the original tenants renew the tenancy for the subsequent periods, unless the agent signs the new contract on your behalf or have a managment contract (rather than lettings only). although they do almost always try it.

            Even if they have this in the engagement contract they sign with the landlord - they cannot make it stick in court on the basis of unfair terms.

            So tell your agent to buzz off - unless they are providing you any service in relation to the new contract.

            Good luck


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