UK Landlord Forum / Life

My wife an I let a house via a letting agency.  After a couple of years of short term tenants, we've had the same tenants for the last 8 or so years - they sign an annual agreement each year; they are great.
The letting agency however is not so great and due to problems with communication over the years, we're now at the point where we are in direct communication with the tenants in order to address maintenance issues.  We and the tenants are happy do do this as it leads to a better outcome for them.

This makes us wonder why we are paying the agency 10% fees each month and we've been wondering whether we should look at scrapping the agency and working directly with the tenant.  Initially we chose an agency because we didn't want to be involved in credit checks and the like and if our existing tenants decided to move out, we'd probably want to use an agent again to find new tenants.

If we did not have an agent, we'd have to remember to get the Gas Safety check done and we'd also have to do a periodic inspection.  We'd also be happy to pass on some of the savings to the tenant in the way of a rent reduction.  The question is though, would we be allowed legally to cut the agent out of the loop?

We do have a rent payment insurance which is brokered via the agent but presumably we could do that ourselves via some company?
Presumably also there are standard 12 month tenancy agreements we could use?

Hoping you can give us some advice :-)

You need to check what your contract with the agent says with regards to the tenant situation.

With regards to passing the savings onto the tenant, there really is no need.  They are happy to pay what they are paying, your not happy having someone take 10% off you, you need to keep that money for the extra things that you have to do.  Using an agent to find T's is fine but as you say they do precious little in terms of work.

I pay Homeserve £19 a month and it covers boiler maintenance and Gas Safety checks. They email and remind you, book when it's due.

When you tell a 3 year old they can't have sweets, well that is what the Agent will be like when you try and cut them out of the loop.

Quote from: bobsyouruncle on June 09, 2014, 09:51:17 AM...we've had the same tenants for the last 8 or so years - they sign an annual agreement each year; they are great.

Sounds perfect - the Agent is just taking money for nothing... especially if they're not even helping with tasks they should be helping with.

Quote from: bobsyouruncle on June 09, 2014, 09:51:17 AMInitially we chose an agency because we didn't want to be involved in credit checks and the like and if our existing tenants decided to move out, we'd probably want to use an agent again to find new tenants.

Yes, the only reason I contemplate using an Agent is for Tenant Find.

Quote from: bobsyouruncle on June 09, 2014, 09:51:17 AMWe'd also be happy to pass on some of the savings to the tenant in the way of a rent reduction.

No need to do that... the extra money is for you. Hopefully the Tenants will be getting a better service for the same money.

Quote from: bobsyouruncle on June 09, 2014, 09:51:17 AMThe question is though, would we be allowed legally to cut the agent out of the loop?

Check your contract / terms of business that you signed with the Agent, not the AST. Then - whatever it says - write to them and tell them that you will be dispensing with their services from X date - before that happens, make sure your Tenants are fully aware that rent goes directly to you (not the Agent, just in case) and that the Agent no longer has authority to act on your behalf. Ensure you get any keys back, of course. Watch the Agent spit their dummy out and see what they come back with - then tell us and we'll be happy to re-read.

Quote from: bobsyouruncle on June 09, 2014, 09:51:17 AMPresumably also there are standard 12 month tenancy agreements we could use?

You could take the time to write up your own..? It's not hard. Use examples and modify to suit your needs - try to write it in plain English (people like that) and don't include anything in there that you think might be an unfair term and condition - job done. Once it's done (it's just a word processing document at the end of the day) you have an AST that suits you and your property perfectly and - more importantly - you know exactly what's in it, 'cos you wrote it. Also, no need for any "Landlord or Agent" terms... no Agent = joy.

I have a similar situation in that I used an agent only to find the tenants.
I do all the management and collection of payment is direct to me.
The agent collects 10% as a Let Only fee.
The initial term was 2years, which has since expired.
We didn't renew, and the agent has acknowledged the lease continues as periodic. But they still want the 10% fee to continue.
Do I have any rights here to terminate any obligations to them?
I am sure the tenants will be happy just to continue with any renewed contract directly with me.
Can anyone advise on the legalities of this?
Do agent fees continue for as long as the tenants stay or is there a clean exit?
Thx