SMF - Just Installed!

can i go private

Started by carlosfandango, June 14, 2012, 06:07:27 PM

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carlosfandango

Hi guys, this is my first time on this forum. I currently use an agency to let out my house but they dont really justify their fees as the tenant calls me direct with any problems. To be fair this is my choice but I was wondering, if my tenants are happy to go privatly, can I cancel my agreement with the agency. Also, what is the best way to approach the tenants?

Janet

I want to change my agent but the agreement I have with them states that they can charge me their fee for as long as the tenants are in the property, even if I handle things myself or go with another agent.

carlosfandango

What if the tenants say that they are moving out, then sign up privatly with me the following day?

Janet

This is my first year of letting my house so I haven't much knowledge, but I suspect that agents are wise to that. I believe mine inspects the property at the end of the tenancy to make sure there isn't any damage before giving the deposit back to the tenants, so they'd see that they weren't really moving out.

Topseyt

I am sure they have come across that one before.  You would be onto a very sticky wicket, and it could possibly be considered breach of contract.

boociara

My understanding is once the AST has ended you should be able to ditch your agent. Some agents renew the tenancies but this is not really necessary. I reckon they do this to get renewal fees and also to tie the tenants/landlords into another contract so they can get more agency fees. The agent probably tries to explain that this is good for both parties eg there is certainty that the tenancy will last at least another 6 months.

However, when an AST ends the tenants automatically enter into a 'periodic tenancy' which means either party can terminate the contract with 2 months notice. The tenants have to keep paying rent as before. At this point you should be able to explain you want to take over the tenancy management.

As you said the tenants contact you if there is a problem so you are effectively managing the property yourself. Why pay  agency fees.

Plus when this contract ends why not find new tenants yourself, there are lots of websites to use (avoiding RM etc) such as rentfromthelandlord and lovemypad.com - it's very simple and saves lots of money :o)


Jeremy

Hello carlosfandango super wide wheels

Absolutely love your name!

Most agents will have clauses in your agreement with them about the agent "owning" the client relationship.  And having penalty clauses if you try sharp things like going behind their back, pretending to move out and in again, etc.

As long as the penalty fee is not disproportionate, these clauses are uaually legal.  As you say, it was your choice and if you want to stay legal, you need to stick with it.  Your opportunity to change should arise when your tenant leaves and you can become more "hands-on" if that's then how you want to do things.