House Letting Agency - Wants me to renew, otherwise court
Discussion
Hope you can help.
I let out a house last year using an estate agents, this year however they are demanding that i renew my contract with them as per the terms and conditions of the first contract. Otherwise they will take me too court.
Not really sure what to do, as i dont want to go to court and don't really want to pay the £1500 they are demanding.
Any help will be greatly appreciated, thank you.
I let out a house last year using an estate agents, this year however they are demanding that i renew my contract with them as per the terms and conditions of the first contract. Otherwise they will take me too court.
Not really sure what to do, as i dont want to go to court and don't really want to pay the £1500 they are demanding.
Any help will be greatly appreciated, thank you.
AndStilliRise said:
From what i can see the original contract i signed was a normal short hold tenancy. The tenants are the same ones the agent has found who have resigned.
I paid a high price as they are not managing the let, only finding me the occupants.
and what arrangement did you sign up to with the agent?I paid a high price as they are not managing the let, only finding me the occupants.
OP - you don't make sense, sorry.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Have the tenants left? or what is their due date to leave?
Are the tenants staying on?
Have you done a private deal with the tenants the agents found or any other tenants?
What are the agents asking for?
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Have the tenants left? or what is their due date to leave?
Are the tenants staying on?
Have you done a private deal with the tenants the agents found or any other tenants?
What are the agents asking for?
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
Edited by superlightr on Wednesday 29th November 16:12
Edited by superlightr on Wednesday 29th November 16:13
Edited by superlightr on Wednesday 29th November 16:14
AndStilliRise said:
From what i can see the original contract i signed was a normal short hold tenancy. The tenants are the same ones the agent has found who have resigned.
I paid a high price as they are not managing the let, only finding me the occupants.
That's your lease with the tenant.I paid a high price as they are not managing the let, only finding me the occupants.
What does your contract with the letting agents say.
In the landmark High Court Judgment The Office of Fair Trading v Foxtons 2009, Mr. Justice Mann @ paragraph 33 stated, and I quote :-
“I should first make clear what I am not deciding, and what I am not asked to decide. I am not asked to decide, and do not decide, that renewal commissions (in the sense used in these proceedings) are always unfair. I make that clear because some of the evidence and submissions of the OFT come close to asserting a case that they are always unfair, and some of the correspondence seemed to be based on such a proposition, though Mr Nicholas Green QC, for the OFT, eventually made it clear that that was not his case. Mr Michael Kent QC, for Foxtons, opened his submissions by saying that I would eventually have to, and should, rule on renewal commission generally, but he moved away from that. I shall not decide whether or not renewal commission is always unfair to consumer landlords.” End
Link Office of Fair Trading web site;-
https://www.gov.uk/cma-cases/foxtons-hidden-fees-i...
“I should first make clear what I am not deciding, and what I am not asked to decide. I am not asked to decide, and do not decide, that renewal commissions (in the sense used in these proceedings) are always unfair. I make that clear because some of the evidence and submissions of the OFT come close to asserting a case that they are always unfair, and some of the correspondence seemed to be based on such a proposition, though Mr Nicholas Green QC, for the OFT, eventually made it clear that that was not his case. Mr Michael Kent QC, for Foxtons, opened his submissions by saying that I would eventually have to, and should, rule on renewal commission generally, but he moved away from that. I shall not decide whether or not renewal commission is always unfair to consumer landlords.” End
Link Office of Fair Trading web site;-
https://www.gov.uk/cma-cases/foxtons-hidden-fees-i...
superlightr said:
OP - you don't make sense, sorry.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Oct/2016
Have the tenants left? or what is their due date to leave?
No
Are the tenants staying on?
Yes
Have you done a private deal with the tenants the agents found or any other tenants?
No other deal, but the rent is being paid to me directly. House repairs are a combination of the tenant and me.
What are the agents asking for?
A renewal of contracts.
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
No.
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
Hope this answers all the questions. From what i can see they want money on every "renweal of existing contracts after 12mths'. The trouble is i don't want to renew with them.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Oct/2016
Have the tenants left? or what is their due date to leave?
No
Are the tenants staying on?
Yes
Have you done a private deal with the tenants the agents found or any other tenants?
No other deal, but the rent is being paid to me directly. House repairs are a combination of the tenant and me.
What are the agents asking for?
A renewal of contracts.
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
No.
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
Hope this answers all the questions. From what i can see they want money on every "renweal of existing contracts after 12mths'. The trouble is i don't want to renew with them.
Edited by superlightr on Wednesday 29th November 16:12
Edited by superlightr on Wednesday 29th November 16:13
Edited by superlightr on Wednesday 29th November 16:14
The first time I rented out my first property we used an agency to do the tenant find. They charged their commission (7% I seem to remember) out of the first two month's rent, and then the remainder came to me.
If the tenants had renewed for a second year (they didn't - they moved out) then the agency would have continued to receive their 7% for the entire time the tenants were there, despite them doing bugger all to earn it.
And yes - they would have expected their commission as a lump sum.
If the tenants had renewed for a second year (they didn't - they moved out) then the agency would have continued to receive their 7% for the entire time the tenants were there, despite them doing bugger all to earn it.
And yes - they would have expected their commission as a lump sum.
king contract says will you? Is that really so hard? AndStilliRise said:
superlightr said:
OP - you don't make sense, sorry.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Oct/2016
Have the tenants left? or what is their due date to leave?
No
Are the tenants staying on?
Yes
Have you done a private deal with the tenants the agents found or any other tenants?
No other deal, but the rent is being paid to me directly. House repairs are a combination of the tenant and me.
What are the agents asking for?
A renewal of contracts.
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
No.
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
Hope this answers all the questions. From what i can see they want money on every "renweal of existing contracts after 12mths'. The trouble is i don't want to renew with them.
As a letting agent and ex solicitor I'm happy to give an insider view but you need to say why they have said their are entitled to a fee.
Lets get some basics
When did the tenancy start?
Oct/2016
Have the tenants left? or what is their due date to leave?
No
Are the tenants staying on?
Yes
Have you done a private deal with the tenants the agents found or any other tenants?
No other deal, but the rent is being paid to me directly. House repairs are a combination of the tenant and me.
What are the agents asking for?
A renewal of contracts.
Did you agree that the agent could let the property for a set period of time ie 2 or 3 years?
No.
This may be what you are talking about. Ie you sign the agents Terms and conditions that you will let the property with them for 3 years ( you are committing to let it for a set period and often you get a discounted commission rate)
If the first set of tenants are leaving after 1 year you still have committed yourself to let the property out for a further 2 years and thus pay the agents commission. Some agents will offer such a low rate but will have a minimum letting period so that they can recover their commission.
At the end of the day the agents have to belong to a redress body but you must go through their internal complaints first and if not satisfied then TPO. but as mentioned best to try and clarify what's going on so we can understand it better.
Hope this answers all the questions. From what i can see they want money on every "renweal of existing contracts after 12mths'. The trouble is i don't want to renew with them.
Edited by superlightr on Wednesday 29th November 16:12
Edited by superlightr on Wednesday 29th November 16:13
Edited by superlightr on Wednesday 29th November 16:14
So the agents found the tenants, the tenants continue to rent.
What was the original terms of instructing the agents did you go for
- an introduction service? ie they find a tenant, prepare the paperwork, collect first months rent and then its up to you to collect rent and deal with maintenance? Normally a one off fee charged.
or
rent collection - as above but they collect the rent and renew the tenancy agreements. normally a % charged monthly.
Edited by superlightr on Wednesday 29th November 16:41
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