Termination of contract with letting agent

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    Termination of contract with letting agent

    I have a tenant on a six month AST - she has indicated that she wishes to be settled and wants to continue beyond this for the forseeable future. She is a good tenant and I am happy with this. As a new landlord I decided to use a letting agent and I have a six month contract with them and need to give one month's notice of termination before end of contract. I would then like to continue to fully manage the tenancy myself for the future. I am not sure how to go about this and would appreciate any advice. I assume that I would need to create a new tenancy agreement between the tenant and myself rather than the letting agent and that the original deposit would be returned to the tenant and we would effectively be starting from scratch again. Would the tenant also need to give notice to the letting agent as the tenancy agreement is signed by the letting agent rather than myself? I am just not sure where responsibilities lie.

    I do the day to day management myself and pay 8% to the agent for collecting and guaranteeing rent - this figure also covers the original tenant find service and credit checks etc. I paid an additional £120 for legal services which included creation of tenancy agreement and guaranteed rent for the duration of the six months. They do not like rolling tenacies and would not guarantee rent should I wish to do this - effectively they want £120 every six months for a new contract. I feel that I would be better off doing the whole thing myself. (Incidentally I also found the tenant myself)

    #2
    Firstly, of course you would be better doing all this yourself (I believe).

    Secondly, there's always risks - but I don't see (from my experience) how having an Agent in the loop helps anyone to mitigate these risks. Agents are not often bringing good reputations and any level of usefulness to the party.

    Thirdly, the Agent may be annoyed with you when they find out you'd like to go down this route... so you might want to test the water with them by informing them you no longer require their services from X date. See how they react to that? They may spit out their dummy, they may try to enforce various terms and conditions you may be surprised to hear about, now. But, yes, going it alone means you - as Landlord - are entirely responsible for everything (really as you are today, right?) and ensure you get the obligation sorted properly... deposit and AST are important (I'd suggest writing your own AST that's specific to the property - but you may want to download one). Ensure the Tenant is fully on-side with your plan as well... you don't want the Agent to divide-and-conquer... and ensure after X date they are paying rent directly to you, not the Agent. I'd ask - as well - is there a benefit in all this to the Tenant, or is it just you saving 8%?

    Make a list of the things you need to do... 1) read through (thoroughly) the Ts&Cs you've signed with the Agent, 2) ensuring Tenant is on board, 3) change of payment, 4) deposit stuff, 5) new AST, 6) informing Agent in writing etc.... then get on them.

    Good luck, it would be good to hear how you progress and the eventual outcome.

    Comment


      #3
      You need to read your agreement with your agent carefully.
      My agreement with my agent means that if I cancel the arrangement as you propose, I have to pay them a month's rent, for example.
      That's not a bad thing (I knew about it and agreed to it) but it would makes a difference to my thinking in your situation.

      If the current tenancy agreement mentions the agent by name, you'll probably need a new one, yes.

      In what way does your agent "guarantee rent"?
      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


        #4
        The agent pays the rent to me regardless of whether he has received it from the tenant. He would then pursue the tenant for any arrears.

        I intend to continue with the agent until the end of the six months assured tenancy, when I believe my contract with the agent comes to an end as a new agreement with the tenant would have to be put in place. My understanding is that I would give noticeto the agent one month before the tenancy ends. I don't think I should be expected to remain with the letting agent as long as the present tenant is in the property or to suffer any financial penalty.

        Comment


          #5
          Originally posted by Patricia246 View Post
          I don't think I should be expected to remain with the letting agent as long as the present tenant is in the property or to suffer any financial penalty.
          Let's hope everyone agrees.

          Comment

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