UK Landlord Forum / Life

Hi,Am new here but could use advice and am kicking myself for my stupidity.Recently signed with Management  Agent for 4 properties.It was verbally agreed that this was a trial period but like an idiot i signed Agreement for 12 months.After almost 3 months I wrote after various e mails and conversations to say it was not working and I was terminating the Agreement-this was the trial.Hear nothing for 2 weeks and today he sends me a bill for £300.00 cancellation fee for each property..I am livid as this was the first month the rents have reverted to me and 2 tenants paid him by mistake so he is in pocket to tune of 1675.00.Have written back and told him that I will not agree and pursue him legally if he persists as the reason Agreement was terminated was incompetence on his part and therefore he did not fulfil terms of Agreement...am I right? Any advice..thanks, Katherine

Hi Katherine. You are right: your contract should have stipulated his duties clearly. Sadly, you hope he'll fork over your rents but may need to take him to small claims court. You'd win ( he does not get to keep your rent no matter what ). Did it state in his contract that he would be paid such a sum if the agreement was terminated? If so, you are in a tighter spot. Also: a terminated contract should never include a fee to him for termination; just a requirement that either party need only notify the other of the termination by written notification. Next time, don't do anything involving a trial period verbally; get something that protects your rights and use it. You don't need to accept whatever they give you .Remember a contract is a negotiation between 2 parties: you both have to like it.  I'd suggest an email that may inadvertently have him acknowledge this verbal agreement; copy his reply and use in small claims court. Something like:

Dear....
This is written notification, that as per our verbal agreement, if, at the end of our 2 month trial period, performance was unsatisfactory, then the planned contract regarding your further services would not continue.

As expected for the role of a property manager, we expect you to forward the rents due to us immediately in the amount of:... 
Most sincerely,.....

If he doesn't dispute you had a verbal agreement in his answer to you then that's acknowledging that you had one. The email then also becomes a written acknowledgement even if he doesn't respond.

We are on our third PM in 4 6 years. Our situation is difficult because we are renting out our home that we plan to move back to ( 1 1/2 more years to get through). It has NOT been easy!

Also, Here is a basic contract ( don't know what you had):
   

MANAGEMENT CONTRACT
Between
__________ PROPERTY MANAGEMENT
(Referred to Henceforth as ____)

&
______name/names
(Referred to Henceforth as "The Owner")
Commencing __June 1, 2012__
.

Properties listed for Management: 

1.__adress of property here
    THE PROPERTY MANAGER (PM) hereby accepts such appointment and agrees to manage the above listed property on behalf of the Owner during the terms of the agreement, and in a faithful, diligent, and honest manner, respecting all Privacy Act issues and conducting themselves in a competent and businesslike manner at all times, as set out in the terms of this agreement.  In the absence of the owner in regards to contact, and in urgent situations, the manager will act in the best interests of the Owner and the Owner's property.

Fees:
For the services listed below PM will receive a monthly management fee of   _________+Tax. 
In addition, PM will receive a turnover fee of half a month's rent upon the signing of at least a 12 month lease. 
Any legal action that will take place at the Landlord Tenant Board Tribunal or Small Claims Proceedings with out of pocket costs will be covered by the owner. 
The management fee does not cover the cost of repairs or maintenance to the property.  Any repairs or maintenance preformed by our staff will be charge to the owner at a rate of ______ per hour, plus materials.

Costs associated with advertising are not to be covered by PM, but by the owner.  PM will however place signs "TO RENT" on or in front of the buildings. 
Excluding emergency repairs, any repairs which have the potential to exceed $100.00 in any 1 month period shall not commence until approval is received from the Owner.

From its Management fee PM will cover:

·   All expenses for itself and its employees and equipment
·   All general management of the property and tenant issues (excluding tribunal affairs)
·   Rent collection in trust.
·   Routine inspections of premises to ensure better preventative maintenance.
·   Keeping a record of account for rents received and expenses incurred.
·   Hiring and payment of contracted and 3rd party services.
·   Payment of bills for utilities and contracted services.

PM will not charge any mark up on any sub-contracted services or material.

PM agrees to assume the following duties:
- Prepare and Enforce tenancy agreements and rental agreements in accordance with the Residential Tenancies Act as amended, which are in effect during the term of this agreement.

- Use its best efforts to collect all rents and other charges payable to the Owner in connection with the property, to arrange that all such amounts are paid when due and to transfer such amounts to the Owner.

- Advertise and arrange for the rental and showing of the property, screening of the applicants including review including review of credit history, confirmation of employment, and references of previous tenancy, and sharing this information with the Owner in consultation regarding the selection of a suitable tenancy.

- Prepare and arrange for the signing of the tenancy agreements, which are to be approved by the Owner before presentation to a prospective tenant.

- Clean up and rehabilitate the property as required to facilitate rental and re-rental of the Owner's unit, at the owner's expense. All work done is to be discussed and approved by the owner before work commences.

- Receive and account for all payables. Pay for all expenses in a timely manner. Keep accurate accounts of the financial transactions involved in the management of the property, and render to the Owner monthly statements showing all income and expenses.

- Implement repairs as required, coordinate and monitor all contractors contracted to carry out maintenance work on the property. Ensure all contractors performing work on the property carry adequate liability insurance, and are appropriately licensed to carry out work licensed to them. Work to ensure that contractual services are secured on the most favorable and competitive terms for the owner.

-  Ensure that all tenant requests for services and maintenance are dealt with promptly.  Prior to repair, PM will consult with the Owner to review the request and intended course of action. In the case of emergency repairs PM will take action keeping the best interest of the Owner and property in mind and immediately consult the Owner as soon as possible regarding the repair and any further action required.

-  Work to ensure that all tenants have adequate insurance to protect the Owner's from any liabilities and damages to the property that may be a result of the tenant's misuse of the property.

-  Inspect the property at least once a year: the interior and the outside, and provide feedback to the Owner, bringing to the owner's attention any deficiencies that require attention, and for ensuring the proper and safe use of the Property by the tenant.

The Owner agrees to assume the following duties:
     - To maintain the property such that it conforms to fire regulations and local by laws.

- Will obtain and keep in force adequate insurance against physical damage (e.g. all risk property insurance with boiler and machinery coverage, rental or business interruption insurance, etc.) and against liability for loss, damage or injury to property or persons which might arise out of the occupancy, management, operation or maintenance of the Property covered by this Agreement. Owner shall save Property Manager  harmless from any liability on account of loss, damage or injury actually insured against by Owner.
- Provide the manager with funds necessary to conduct the usual duties as outlined in this contract. If the funds available from rent collected are insufficient, to Owner is to provide the manager with additional funds in a timely manner.
-  To allow _MANAGEMENT   to tastefully install a management declaration sign on the building upon contracting management services.

_______ Property Management is responsible for the safety of its servants or agents and shall save harmless the Owner from any and all liability and from claims that could arise from the performance of the Management of the Property.

Contract Termination:
This contract may be broken by either party at any time with a minimum of one months notice in writing.   Upon receiving or sending notice of termination of this contract, The property Manager will provide the owner a final summary of transactions for the current year as well as surrender tenant files and property keys and information which may be requested by the Owner for the continued operation of the Property within two weeks.  The Owner agrees to settle any outstanding bills or invoices in accordance with this contract within two weeks of receiving or sending written notification of termination of this contract.

Agreed on this ____day of ______20__.
Property Owner
________________________   
(Your signature here)


________________________
signature
_____________Property Management