agent trying to charge me commision for letting tenancy run into periodic

ncooper1974

Hi

I let a flat out last year and used an agent on a let only basis. I queried that the chances are that after the tenancy expires (12 month AST) I would let it run into a periodic tenancy - and thus would I be liable for renewal fees. He said No.
I read the T&Cs and found the following bit:
Section 3:10
Before the end of the tenancy, we will contact both landlord and tenant to determin whether the tenancy is to be extended or renewed for a further term. For the renewal of a tenancy or providing documentation to extend the tenancy agreement our commison will be charged at the same rate unless agreed otherwise in writing before the commencement of the period of extension or renewal. Our commision is payable in full if the tenancy with any existing tenant introduced by us is extended or renewed for any period and whether on the same or different terms and wether negotiated by us no not

I then queried this with the agent, and he said it wouldn't apply in my situation.

Now, 13 months later, the tenancy has turned periodic, the agent I dealt with has left, and the agency is chasing my for the commision.

Am I liable? I was under the impression that if a tenancy turned periodic, them it is neither extended or renewed. Is this correct?

Anyone suggest any polite retort to the agency?

poppysarah

The tenancy does it all on it's own.

ncooper1974

Thats what I thought. and I said so much to the agent.
But he insists (or at least seems to think) that section 3:10 (above) means that he can charge a further commision....

Doozergirl

Can't think of a polite retort, no.

They have done nothing; they haven't exactly secured the tenancy. How do they calculate 'full fee' anyway if it's a month by month agreement now? Do they plan to send you a bill every month?

m_13

You might be better posting at www.landlordzone.co.uk/forums. So far as I can see the tenancy hasn't ended nor has it been renewed. Did they have to provide any documentation for the tenancy to continue? That appears to be their only other reason to charge.

Are we talking about a managed service here where you pay a percentage each month to manage the property (in which case if they are still managing then they should be paid) or something else?

socrates

m_13 wrote: »

You might be better posting at www.landlordzone.co.uk/forums. So far as I can see the tenancy hasn't ended nor has it been renewed. Did they have to provide any documentation for the tenancy to continue? That appears to be their only other reason to charge.

Are we talking about a managed service here where you pay a percentage each month to manage the property (in which case if they are still managing then they should be paid) or something else?

He says - 'let only basis' in the first paragraph

ncooper1974

m_13 wrote: »

You might be better posting at www.landlordzone.co.uk/forums.

Done. But thought i'd check on here too as you guys are generally very helpful

m_13 wrote: »

So far as I can see the tenancy hasn't ended nor has it been renewed. Did they have to provide any documentation for the tenancy to continue? That appears to be their only other reason to charge.

They have done nothing, other than phone up to enquire what I wanted to do about an extension. Told them I would be going periodic, and that I didn't require their services anymore.

m_13 wrote: »

Are we talking about a managed service here where you pay a percentage each month to manage the property (in which case if they are still managing then they should be paid) or something else?

No - It was a let only service. I paid up in full (8% +VAT) at the beginning of the tenancy and then I've not heard from them since, until now

ncooper1974

I am in the process of wiring a polite email, explaining that the original agent (who has now left) said I would not be liable. I'm also asking that any further correspondance be via email so there is a record of what is being said.

I have also challenged them to explain how a tenancy turning periodic is either extended or renewed.

And for good measures, I have copied in the local trading standards agency.
I'll let you know what reply I get

Edit : found out they are a member of the Ombudsman for EAs, and so will copy them in too

m_13

How much have they asked for? Is it another 8% plus VAT?

Are they a regulated agent?

Your only problem might be if they have your tenant's deposits and start being funny about releasing them. Were they protected by them or you?

ncooper1974

They tried to explain it to me such that as it was periodic, and therefore the tenants have a 2 month notice period from myself, then they will be charging me 8%+VAT on the tenancy, and then pro-rata'd it for 2 months commision.

I wasn't really listening as I was pretty sure I wouldn't be paying at that point.

Oh, and on my insistance, I have taken the full deposit and protected it with the DPS.

MX5huggy

Tell them you have decided to reduce the rent to £1 per month and therefore are including a cheque for 16p in full and final settlement for their services.