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Release from Letting Agency


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Hi All

 

I have been renting my other property since Jan this year - done through a Letting Agency as I had never been a landlady before.

 

Tenants are lovely but Letting Agent was like the Scarlet Pimpernel when either we or tenants tried to contact.

 

Anyhow, I signed agreement with LA prior to tenancy begining and shortly after recived a confirmation in writing that there was a 6month tenancy with Mr & Mrs tenant.

 

Apart from passing on the rent (minus their 10% fee), the LA haven't contributed anything to the relationship. The tenants phone us if they have any queries or problems and it al gets sorted - everyone is happy and it works extremely well.

 

The tenants want to rent directly through us and vice versa. We have agreed that with the LA gone, we won't need to increase the rent. The teanants have just given their 2 month notice and will be getting the deposit back and giving to me at the beginning of July for me to put in a TDS.

 

Do I also have to legally give the LA notice? It was only a 6 month tenancy that we employed them for but I wonder if they will try to demand more money as we have 'cut them out of any future deal'.

 

If needs be, I can quote plenty of breaches of the Contract between myselg and the LA but I'm hoping not to go down that road as I prefer the easier life!

3 Active Claims:

Barclays Refund of Bank Charges (Sole account) - Applied to lift court ordered Stay

Barclays Refund of Bank Charges (Joint account) - Awaiting court date

Barclays Refund of Bank Charges (Joint account) Pre-6 yrs- LBA sent.

 

 

3 Wins :

Barclays t/a The Woolwich (Data Protection Act breach costs & compliance)

HSBC (on behalf of brother)

Settled Out of Court - £3,874.76

Alliance & Leicester (on behalf of friend)

Settled Out of Court - £723.41

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Guest Old_andrew2018

Hi

 

You will need to look closely at the terms and conditions of your contract

It is quite possible that your agreement runs only for 6 months, it is also possible that by extending your tenants lease you may in fact extend the agreement with the agent.

 

Regards

 

andy

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You need to go through your terms and conditions that you signed with the agent. As not only may you extending your agreement with the agents, but you may also be levied renewal fees if you continue with the tenant for the forseable future and thereafter, as they were the original tenants that they were introduced.

 

Interesting the OFT are taking one of the larger agents to court for this, as they feel that an agent should offer you a service for monies due and not just a fee for a renewal whereas they have put no further input in, apart from the intial introuduction of agent.

 

You could, if you felt, that the tenant was going to be a long term tenant, and you are going to be subject to these fees. Is to negioate an one off exit fee payable.

 

Regards

 

pebble - efffective landlord solutions

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Hi both

 

Thank you for both replies. I think the LA has me tied up for at least 3 mor months (see below).

 

I am reluctant to even consider any exit fee as the agent has does absolutely zip and may well have not existed apart from introducing the tenant - they have had more in the 10% monthly fee so far than the entire introductory fee so they are well in front for doing zip.

 

The T&Cs does say:

 

"This agreement will remain in force until terminated by service of three months notice by one party on the other prrovided that the Agent may terminate this agreement forthwith and without service of notice in the event of any action or omission by The Owner or The Owner's representative which frustrates the continued performance of the Agent's service hereunder."

 

However it was only a 6-month tenancy (no roll over was agreed as we were hoping to sell and just wanted it occupied until a sale came through).

In a separate letter sent a week later, the LA confirm that it is only a 6-month tenancy.

 

Would it technically be possible for the tenants to remain in the property for a week at the end of the tenancy foc as my guests and for me then to draw up a fresh tenancy agreement?

 

I appreciate it may sound like I'm trying to screw the LA but they have breached so many of their own Clauses of the Agreement (eg no inspections, told us their was a 17yr son there for a few weeks but turned out to be 21 yr old permanently there, advised they had a dog with pet insurance however it is a cat with none). All little things in their own right but accumulatively 8 counts of failing to keep to their T&Cs.

 

I haven't even been furnished with a copy of the tenancy agreement or copies of the references as requested so in fact I know nothing about the tenants except thier names and things I've picked up from chatting to them - no way to trace if they decided to do a runner!

3 Active Claims:

Barclays Refund of Bank Charges (Sole account) - Applied to lift court ordered Stay

Barclays Refund of Bank Charges (Joint account) - Awaiting court date

Barclays Refund of Bank Charges (Joint account) Pre-6 yrs- LBA sent.

 

 

3 Wins :

Barclays t/a The Woolwich (Data Protection Act breach costs & compliance)

HSBC (on behalf of brother)

Settled Out of Court - £3,874.76

Alliance & Leicester (on behalf of friend)

Settled Out of Court - £723.41

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You would need to refer to the agencys terms and conditions as if you did continue contract with the tenants you would be subject to renewal fees if these are included within the terms and conditions.

 

It would not make commercial sense for you to continue, only then to have a bill sent onto you. It is imperative that these fees if any are factored into the new increase. Ie; if they are going to charge you a standard £500 (only giving you an example as you havent put the fees payable) and the tenants want to stay on you could increase the rental by £10. Thus factoring this cost within the rental.

 

The other thing that you want to make sure before you do any renewal is to take full references on the tenants, check their credit history/ccjs as it may of changed whislt they have been resident. If you are able to obtain rental guarantee or legal expenses cover, this may prove prudent to you in the case of the tenants default. Get them to fill out new application forms. Noted that the agent didnt pass you over references, but this may fall under the ownership of the agent.

 

Regards

 

pebble - effective landlord solutions

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