commision upfront

[greg67]

So i've put my property on rent and the agency has decided to take its commission in the first 2 months and have said they will pay the full amount of rent taken from the tenants for the next 10 months, no where in the contract did they state this or with the numerous phones calls and conversations had with them. The understanding we had was they would take their commission on a monthly basis out of the rent not all in one go. Are they allowed to do this, what action can i take?

 

Thanks.

[sequenci]

Hello there.

 

Do you know what it states within the contract?

[greg67]

It doesn't state anything about all the commission being taken in the first 2 months. it just states the rent amount and the date the tenant has to pay.

Edited May 22, 2012 by greg67

[sequenci]

Does it say anything out the commission at all?

[greg67]

Does it say anything out the commission at all?

 

No it just states the rent amount per calender month which i was told i would get.

[greg67]

Any suggestions people. thanks.

[assisted blonde]

Well if its not in the contract then i cant see it but there must be somthing in your agreement with the agents about commission/charges/ what they are responsible for what you get for your money etc.

[greg67]

Well if its not in the contract then i cant see it but there must be somthing in your agreement with the agents about commission/charges/ what they are responsible for what you get for your money etc.

 

It doesn't state anything about commission in the contract just the rent amount, dates, my responsibilities and the tenants. what they said to me was that i would get a fixed amount every month, which is clearly not the case.

[mariner51]

You are looking at the wrong contract (AST). You prob signed a sep contract with LA that detailed commission and payments. AST is between you & T, Other is between you & LA only & is binding if signed.

If you engage a LA he is entitled to his commission, Your fault for not detcting his T&Cs were unfavourable.

[greg67]

You are looking at the wrong contract (AST). You prob signed a sep contract with LA that detailed commission and payments. AST is between you & T, Other is between you & LA only & is binding if signed.

If you engage a LA he is entitled to his commission, Your fault for not detcting his T&Cs were unfavourable.

 

I did not sign any other contract though.

[mariner51]

Then you have a verbal agreement with LA. If they have a website, check out their standard procedure for deducting commission. Did an ind person witness LA saying when they would take commission?

Did you engage LA for full management or T finder only basis?

[greg67]

Then you have a verbal agreement with LA. If they have a website, check out their standard procedure for deducting commission. Did an ind person witness LA saying when they would take commission?

Did you engage LA for full management or T finder only basis?

 

They do not have any info of their procedures on their website. No independent person witnessed the numerous conversations. Full Management was agreed but the LA would take a monthly commission from rent not 12 months commission upfront in the first 2 months.

[Bang!]

Realistically it could never be in the terms of any property rental agency - as many properties will be mortgaged, and to expect two months without payment would make quite a cash flow problem to many landlords.

 

Instinct would say they were on their way out, and struggling to get money to keep the wheels turning. If they fold at three months - you have paid rather a high commission.

 

Do they have limited liability?

 

If there are no terms in writing, its unlikely they could claim anything for you walking away.

 

Is there any reason you cannot manage the property yourself until you find a replacement?

[raydetinu]

Suggest you post on the landlordzone web site, they would have a better understanding of that side of things.

If you have not signed an agreement with the agent then end it, however you will be liable for some of the work they have done on your behalf.

For their fee what did they offer you, rent protection insurance, inspections report, do they handle the deposit protection for you?