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Renewing tenancy agreement without the estate agent

Started by Anne, January 06, 2015, 01:26:59 PM

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Anne

Hi
Last year I had a problem with the estate agent I had used to find my tenants.  At the moment when the contract was due to be signed online, they asked if the term could be extended to 15 months but didn't point out the increase this would make to the amount I was paying them.  Although they said they'd explained this to me, this conversation never took place. In the end it was the word of the agent against mine. I paid the extra - several hundred pounds but really don't want to have to pay them anymore should my tenant wish to renew the contract in a few months time.  Am I legally obliged to contact the agent?  They arranged the holding of the tenants deposit.
Thank you.

alanf

Hello
Are there any written terms or confirmation letter that the agents sent you or you signed? This is where it matters. Check the terms and conditions.

Hippogriff

It is down to what you've signed with the Letting Agent. You need to go over what you agreed with them. Many Letting Agents will try to insert clauses into the agreements they have with Landlords that say they'll be due their cut for as long as the same Tenant rents your property, regardless of whether you take their 'services' or not.

Now, whether these clauses are enforceable or not is another question entirely. However, at the moment, one would assume your Letting Agent is quite involved in your tenancy... they did the deposit aspect for you (did they do it correctly?)... are they doing rent collection for you and sending you 'your cut'? If you want to remove them from the equation, there'll be some housekeeping to do in the first instance and that kind of activity will obviously forewarn them as to your plans. Please confirm if the Agent is doing nothing for your tenancy today.

Anne

Hi
Thank you for your comments.  It was a 'find only' agreement so they are no longer involved in the day to day business  However, I will have to search out the contract.  I suppose if it's in the small print there's not much I can do about it.
A

esk

Most letting contracts will allow agents to charge fees for as long as the tenant remains at the property, or for a fixed period (usually 2 years after the end of the initial period).

In the case of The Office of Fair Trading v Foxtons, a renewal clause was struck down for being unfair, but the judge emphasised that not all such clauses would automatically be unfair.

Since this decision, most agents go out of their way to bring any renewal fees to the attention of the landlord. If this was not done, and the clause is buried in the small print (AND you are not a professional landlord), then there is a possibility that this clause cannot be enforced.

It all depends on the wording of the contract, plus any conversations that took place at the time between you and the agent.

Good luck!

Hippogriff