terminating a fixed period rental agreement

singaporesling_2

Hi, I want to terminate early my annual flat rental agreement - my landlord is being very good and agrees this is possible - but, the letting agency wants
[1] me to pay them the percentage of rent they receive, for the remaining 8months of the agreement.
[2] wants our landlord to pay a large lumpsum for terminating the agreement early.
My contract does not show any penalty clauses for early termination. My landlord is getting a copy of his contract with the agent, because the agency state they have a right to this money, even though a new tenant will be signed up before I leave the flat.
Surely if the tenant and landlord agree terms for early termination, then the agency should work with them, not try to get two lots of rental income (ie mine and the new tenants), plus an extra payment for the landlord.
Please advise.....

Premier_2

I'm not sure what they are really wanting from you.

[1] Are they suggesting they may not be able to receive the same rent level for the remaining 8 months? i.e. as they will be taking a perencentage of the rent in management charges, then if they have to let at a lower rate, they will earn less income? I guess they could ask you for this difference in commission.

[2] The LL charges are really something for him to worry about, but I suppose he is asking the LA to ensure he doesn't lose out. You could be liable to the extra costs of setting up a new TA with a new tenant and terminating that tenancy agreement. These are additional costs that would not be necessary if you abided by the terms of your original contract. You could also be expected to pay the necessary marketing fees to find those new tenants.

The LA ultimately works for the LL. It's always compliacted when you start dealing with both. The reason that LLs use LA is partly because they don't like dealing directly with tenants and telling them the truth. You LL may be telling you everythings fine, but then phoning the LA to say make sure he doesn't lose any money out of your wish to end the agreed contract early.
As the LA is the LL's agent, then the LA should do what the LL asks which means if he really is happy for you to walk away at no cost then you could ... but the LL could end up with the resulting bill from the LA which he probably won't be happy with.

As you are the one that is causing the expense, you should be the one that meets everyone's expenses, but I agree there should be no extra profit generated by this matter.

N79

What I suspect has happened here is that the LA is telling the LL that they want their management fee as if the tenancy ran to conclusion. Ie Rent times X% times 8 months. If you leave early you are liable for LL costs (this is standard law - if you break a contract you have to pay the other parties costs) and this does not have to be explicitly spelt out in the contract.

Ultimately, if LL contract with LA has this clause you will probably have to pay your LLs costs associated with your breach of contract. Still, it is a small price to pay given that your LL is letting you breach teh contract without having to pay for the remaining rental period or until new tenants take up residence.

I would also object if the LA tries to claim two sets of fees. Ie their claim should be for a maximum of 8 months or until the property is relet through them, whichever is earlier. Of course, if the LL changes agent then you will have to pay the full 8 months.

Ladybird20

I am a landlord and have a LA to let my property out on my behalf.My last tenent wanted to to leave the agreement early to return back to their own home,,so i agreed to let them leave their agreement early , they did however have to pay my re letting fees + vat..this is whats going through at the moment,,,,

chewmylegoff

all the letting agent can do is here is ask the landlord to "put them right" as if the contract between you and the landlord had not been annulled by mutual consent.

if in the event there is a new tenant, and the letting agent continues to earn the same (or more) money, and assuming the new tenant does not leave within the next 8 months, then the agency's claim is spurious. they have to suffer a financial loss in order to have a valid legal claim.

if the rent from the new tenant is less, if there is a void period, or if the agent will not receive a % of the new tenant's rent, then they would have a valid breach of contract claim against your landlord. but not against you, unless you have signed a contract with the agent, which i very much doubt.

karenj

You have not stated how long you have rented the property for, so it is difficult to comment. However, if you have a tenancy agreement for a six or 12 month period, you are only liable for the first 6 months, then you can give, after the 6 month period, 1 month's notice (the landlord has to give 2 months notice after 6 months). If the TA has been extended by a further 6 months, you can terminate the agreement after 1, 2, or 3 months by giving proper notice of 1 month. The LA has no right to ask for rental fees if you vacate early after the initial 6 month period as long as proper notice is given.

tbs624

karenj wrote: »

You have not stated how long you have rented the property for, so it is difficult to comment. However, if you have a tenancy agreement for a six or 12 month period, you are only liable for the first 6 months, then you can give, after the 6 month period, 1 month's notice (the landlord has to give 2 months notice after 6 months). If the TA has been extended by a further 6 months, you can terminate the agreement after 1, 2, or 3 months by giving proper notice of 1 month. The LA has no right to ask for rental fees if you vacate early after the initial 6 month period as long as proper notice is given.

This advice is wrong .

If your contract was for a FT of 12 months then that's exactly what it means, in the absence of a specific break clause. If your original FT has expired and your tenancy has become periodic *then* you may give one month's notice, and the LL has to give two. There is a reason why a contract with a specified expiry date is called a *Fixed Term* contract...........

If, as a tenant, you want to leave early & your LL agrees then you can be expected to pay reasonable costs incurred by them(ie advertising, legal costs etc) because of you doing so but a LL/LA must attempt to get a new tenant, and the tenant who is leaving can also help with this - it's in their interests to do so.

pm_cooper

Hello, new to this site as I need some advice.

We are in a rental agreement, it ends in March, however life at our flat is becoming unbareable and we want out!
The thing is that the letting agent is saying that we might be liable to the remaining rent, which we can't afford.
The situation we have is that we need to leave as people are smoking in the stairwells, which the property management is doing nothing about, the smoke comes in through our extractor fans and front door. My wife is asthmatic, and as we are both non-smokers its awful. It's illegal to smoke in stairwells as they are communual as such a public place. Our contract states the premises are non-smoking.

Are we able to say this is a breach of contract? any other suggestions of ways out when living conditions have deterioted and your flat smells of smoke!?

Cheers,

Paul

Premier_2

pm_cooper wrote: »

...the smoke comes in through our extractor fans ...

Have a word with your LL/LA. It sounds like perhaps your extractor fan is running backwards.

It also seems odd that your extractor fan is designed to extract into an enclosed stairwell.

tbs624

Write formally to the LA, with a copy to the LL, stating what the problem is and what you want them to do about it. If you raise an issue by phone in the firstv instance always write as a follow up just confirming your understanding of the conversation. Keep copy letters safely with your tenancy agreement.

If you don't have the name & address of the LL then ask the LA for that info in writing. They must pass the info to you within 21 days of receiving your written request or they commit a criminal offence by not doing so.

Talk to the Tenancy Relations Officer on your local Council's private sector rentals team. they can liaise with the LA/LL where necessary.

pm_cooper

thanks for the replies.
When they smoke in stairwells, the smoke drifts out of the windows (where our extractor unit goes outside!)

I have contacted LA who are contacting LL, who is an okay bloke.
We're hoping he might let us give him couple of months notice, as the property management people (who the landlord pays ground rent to) are being very unhelpful, and I have written emails from them saying I should sort the problem of the smokers in the stairwells myself!! (their property to manage...so manage it!)