Updating post from Reddit.
I’m in dispute with a letting agent.
In essence:
2021-I moved out my house and engaged with them to find me a tenant.They duly did,and a 2 year lease was signed. I paid the appropriate fees.
When it can to renewing the lease,I undertook it directly with the tenants.Deposit was refunded and I then lodged it.
Estate agents squeezed me for another year of fees and I though that was the end of it.
This year they are pressing me again to pay them Although the have nothing to do with the tenants.
There is a clause that states that I need to keep paying the agents as long as the tenants remain in situ The tenants are excellent and I really don’t want to terminate the tenancy,but I feel I should not have to pay the agents indefinitely either.they do absolutely nothing with regards to the running of the property.
Any advice will be greatly appreciated.
Clauses like this are fairly typical not just in renting, but other places where agencies find people - recruitment being an obvious example. Basically, they found the people for you, they want to make sure you don't just cut them out of the equation.
It doesn't really seem fair, I know, but it's how they make their money. And to be fair to them, it was in the contract all along, you just didn't read it or negotiate it out.
Seconded.
If I may, do you have another set of tenants (that you found independently or via another agent) or are they the same tenants that the lettings agent sourced for you?
Same tenants...
OK. Another question, when you say fees, what are we talking?
Sorry for the many questions, it's just to help understand your situation in greater detail.
They want me to pay the 4% plus vat of the yearly rent. This figure stays the same as long as the tenants stay in situ..
You'll need to check the terms of your contract with them. That's the key factor. Read it over and over again. There will be a clause somewhere about renewals or in-situ tenants. Let us know what it says.
Generally speaking though, As the tenants haven't changed, it's just a case of contract renewal, which can vary in price, but let's say £20-£100, certainly not 4% plus VAT. Also, as the agent hasn't engaged in a new tenant-find service, i.e. done new marketing, tours, vetting, checks etc, the service provided now is of a different level, so the service fee cannot justifiably be the same.
I’m sure there is a judgment somewhere that says that clauses like this cannot run indefinitely: I might be misremembering but you may want to Google it as your answer will be there.
Do they have anything to do with the tenancy at all now? What is the wording on the agreement for this fee?
Absolutely nothing. The found the tenants, did the credit checks/signed the lease/lodged the deposit. Returned the deposit when I signed the lease directly with the tenants- Thats it...I collect the rent/ arrange all the certs etc. 'Bar the invoice they sent ( which wa
s two months late btw) I have not had any comms for over twelve months with them
Double check that contract about fees.
If you feel it is unfair, raise a formal complaint to them and state you will escalate it to the property ombudsman or property redress scheme if not resolved.
Talk to the ombudsman if they refuse to sort
I am at that point currently- just wanted a sounding board rom people that might have experienced similiar issues- thanks
Wording on the fee-
Oh now that we have this. Well, sorry, mate, your contact is pretty clear. You need to pay.
And the only way I prevent this from happening next year is to terminate the lease and basically kick the tenants out- seems a bit unfair for all parties.
I agree, but the terms are clear. You can't challenge them.
can you break the tennancy, have the tennants stay and resign a new lease?
I did this after the initial 2 year tenancy (via the agent) had come to an end. Deposits were returned and I signed a lease directly with the tenant.
First, you signed the agreement and the clause is clear. It's a pretty standard clause.
In your view the fees are unfair. Maybe, maybe not. Their perspective will be that they found you excellent long-term tenants. Clearly you are happy with who they found. The clause gives the agency a higher return if the tenant stays longer- your interests were aligned. If you wanted a one-off fee you would've needed to negotiate it, perhaps the agency would have needed a higher initial fee for that kind of deal to be worth it.
I thought that the initial 2 year fee WAS the one off fee...anyway we live and learn...
According to case law this is an unfair term. It can't be perpetual. Don't pay, they won't do anything. I recently removed myself from a contract with countrywide due to them refusing to negotiate a rent increase with the tenant. They tried to claim their fees until the end of the contract, I didn't pay, they sent 1 letter and then gave up. If they harass you make a formal complaint then take it to their ombudsman, they will give up before it reaches that stage.
How did you remove yourself from a contract?
I had a contract with an agent who sold his lettings business to a new agent. The new agent states that I must continue to pay them an annual % for the tenants in situ. I disagree, as I have not signed any contract with them and they didn't find my tenants.
After their refusal to carry out a service listed in their own agreement I informed them that this is a material breach of contract and therefore I rescind the contract (had a few days of back and forth trying to get them to carry out the service and then threatened to rescind the contract if they didn't). I reached out to the tenant and asked them to pay rent directly to me immediately. That's the most important part, get control of your rent. After that the ball is in their court, they may make a few futile attempts at collecting what they think they are owed but when they know you're right they won't pursue it further.
In your case, write them an email/letter outlining that you have no contract with them and therefore you owe them nothing. I assume your rent is already paid directly to you so there is nothing they can do. Let them try. After a bit of back and forth tell them you have made your position clear and you won't respond to any further correspondence in respect of the matter. Happy to help with specifics feel free to dm me.
Yes, my tenants were not impressed with the new agent and agreed to pay their rent directly. Thank you.
The contact does not include rolling tenancy. It states fixed/ periodic.
Don’t fix the AST and you appear to be fine.
Alternatively, can you notionally evict the tenant and give them a new AST?
Or ignore them and let them prove the tenant is still there. Tell the tenant to kick the agent in the face if they come knocking. Pour some boiling water on them also.
If you get on with the tenants then sign an agreement whereby they agree to vacate for 15 minutes and then get a new tenancy as part of the deal and sign it all 8)
Tbh I don't have any real world advice for this situation as I never use (or would ever use) a letting agent.
However, if I was in your shoes I think I would just not pay and see what they do. There's a good chance they're just trying their luck and hoping they will get a year's payment for sending one letter.
If you just ignore it, they might just forget about it and move on too. If they decide to pursue it and send you more communication/ threaten to go down the legal route then maybe consider just paying.
There's a good chance that a judge would side with you though
Agreed, I am going to write to them once more, after which I will ignore them.
I live abroad now too.
