Can I take over lease and etiquette with LA?

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    Can I take over lease and etiquette with LA?

    I have a few properties, some I manage myself and some I leave to a Letting Agent who I have to say have been excellent. I am thinking of eventually managing all the properties myself but my LA have been on the phone saying that one of my tenants came into the office last week and wants to sign up for another year which is great and he still has nearly 4 months to go on his current agreement.

    Now am I permitted to visit the tenant and explain that I would like him to not renew with the LA but myself at the end of their tenancy? It feels a bit harsh on the LA as they are doing a great job at the moment all be it for 10% and they are bound to find out I would be privately renting to the same tenant and I would still be renting a couple of houses through them, however I do want to eventually manage all my properties.

    I would probably want to tell the LA what I am doing so everything is clear but just wondered if there is anything legally that could be a problem?

    Any thoughts?

    #2
    It isnt a legal issue as such. You have a contractual agreement with the LA. That will likely contain the termination process of that agreement. Again it is quite likely that it contains some compensation for the LA in the event you cancel the contract you have with them, while keeping a tenant they have found. How enforceable that is, is debatable if you ask me as I think it would have to be reflective of something they did and not just for loss of potential revenue. So I would say that if you have paid them a new tenant fee for finding a new tenant for your property that means they have been compensated for that service and the 10% is for the ongoing service they are providing. So in that sense, I dont see why they would be entitled to any compensation for that. The fact they wont be making any more money through that tenant, is in my mind irrelevant.

    Have a look at the contract you have with the LA first and then you'll see. I would expect many people will disagree with the above, but thats how life is.
    All views posted reflect my personal opinion only and do not constitute professional advice which I am not qualified or knowledgeable enough to provide.

    Comment


      #3
      Originally posted by MSaxp View Post
      It isnt a legal issue as such. You have a contractual agreement with the LA. That will likely contain the termination process of that agreement. Again it is quite likely that it contains some compensation for the LA in the event you cancel the contract you have with them, while keeping a tenant they have found. How enforceable that is, is debatable if you ask me as I think it would have to be reflective of something they did and not just for loss of potential revenue. So I would say that if you have paid them a new tenant fee for finding a new tenant for your property that means they have been compensated for that service and the 10% is for the ongoing service they are providing. So in that sense, I dont see why they would be entitled to any compensation for that. The fact they wont be making any more money through that tenant, is in my mind irrelevant.

      Have a look at the contract you have with the LA first and then you'll see. I would expect many people will disagree with the above, but thats how life is.
      The agreement with the LA states I have to pay them 6 months commision as compensation for carrying on with a tenant they have found what I dont understand is can I not just let the existing tenancy agreement lapse into periodic, ask tenant to give notice, I also give notice to the LA then sign a new contract between myself and the tenant. Im happy to pay the LA a finders fee but wondered how I am supposed to get out of paying the 6 months commision?

      Comment


        #4
        I suspect you're not supposed to get out of paying the fee you agreed

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