UK Landlord Forum / Life

Hello,

I am a new landlord, have been renting out my property for less than a year so please bear with me! I have looked into old forum postings so as not to duplicate the thread but couldn't find anything close to my situation!

The estate agent has been fully managing the property for last year, they advertised and found the tenants. The tenancy is due for renewal, the current (same) tenants want to extend for another 6 months BUT they are not are not keen to go ahead via estate agent. The tenants seem like good people and I think I can manage the tenancy myself from now on.

I haven't been entirely happy with the estate agent myself but the agent says I'll be liable to continue to pay the current fees as per their T&Cs (as below), even if I do a private contract with current tenants because these tenants were introduced by the estate agent.


(1) Either party may terminate this agreement by giving the other 60 clear days prior written notice of termination. Following termination the Landlord remains liable to pay to estate agent the amount of any fees due under clause (2) for any remaining term of the tenancy in question, together with other fees due. The full amount of such unpaid fees is due and payable at the date of termination and estate agent can set off the amount of such unpaid fees against any monies owed or to be paid to the Landlord by estate agent


(2) By agreeing to purchase the Full Management and/or Rent Collection service (as set out in this agreement) the Landlord agrees to pay to estate agent fees at the rate set out in the Confirmation of Marketing. If the Landlord terminates this agreement in accordance with its terms prior to the expected termination date of the original tenancy and any extension in question (including the remaining term of any periodic tenancy) they will remain liable to pay to estate agent those fees due for Full Management and/or Rent Collection for the remaining term as set out in the Confirmation of Marketing. For tenancy terms of less than 12 months, a minimum of 12 months fees will be chargeable



What are my rights here? Can I challenge the estate agent, end the current contract at it's expiry and do a new private contract directly with the tenants?

I don't really want to get into any legal hassle if that would be the case if I go ahead and do a new private contract, just want to know what are my rights and that estate agent is not misleading me.

Many thanks for the patience and I would appreciate any comments from experienced landlords on here.

Best wishes 

Yes, of course you can challenge the Agent but be prepared for a fight - you are eating their lunch and they've got these clauses in the Terms of Business, you have signed, for a very specific reason, right? This reason. You may be able to negotiate a buy-out, you may just call their bluff and stop paying, you may be able to claim they're unfair Ts&Cs... the problem, really, is that you obviously read this when it was put in front of you... and you still signed it. I've seen the same and I've gone and crossed it out. That's not me being super smart, that's me not being stupid.

Personally? I'd probably call their bluff. Just stop paying, see what they do next... do they have big balls or are they all talk?

Lesson learnt, next time before signing, read the small print and understand properly what one is getting themselves into!