Contract dates with LA

sandsni

Hi. I'm just trying to clarify something in my own head, so I'd appreciate help from anyone with experience of these things! My parents are the LLs btw, and they agreed to try using a letting/management agent for a year to see if it made life a little easier (the jury is still out on that one !).

Just to give you the timeline:
November - contract signed (and dated) with LA and initial £100 marketing fee paid but house not ready so:
January - House marketed by LA
March - tenancy agreement signed and LA's fees "kick-in" (I've realised after reading several posts on here that the 7.5% upfront part of the fee was NOT a good idea )

So my question is, would my parents' contract with the LA run from November or from when the full fees "kicked in" in March?

Thanks

Werdnal

Not an expert in contract law, but my interpretation would be their contract started on the day it was signed and dated. If the property was not ready, that was immaterial. From the date your parents "employed" the agent and signed up to their terms and conditions, they were "working" for them.

Are you asking as they want to cancel their agreement after the year is up? If so, I would advise them to read the contract very carefully, as many agents try to continue their commission whilst the tenant they found is still in residence. Check what your parents have actually agreed to!

sandsni

Thanks Werdnal, I thought that was probably the case re dates, but I just wanted to be sure. We're just weighing up options right now (forewarned is forearmed and all that).
I did read in the contract (before it was signed) that there could be a 5% charge for the life of the tenancy if the contract with the LA ceased, but of course I didn't expect there to be an issue with that so I encouraged my mum to sign. Hopefully the LA will start to earn their wages and so it WON'T be an issue, but at this stage it feels like their management skills are rather lacking, so I'm wondering about downgrading to "letting-only" and taking on the management part myself (we already have our own skilled and trusted tradesmen and I seem to know at least as much as the LA about maintaining a house lol).
I just wanted to get things straight in my head so that if my parents do decide to give notice to the agent, we make sure there's no confusion between the dates of the LA's contract and the tenancy agreement. All this contract stuff is turning out to be a bit of a minefield, and I told my mum having a LA would make things easier :rotfl:

Thanks again

Werdnal

What are the LA doing/or not doing, that is causing concern? Have you read the terms of the management contract, to prove what they should and should not be doing?

As you probably know, there are no minimum qualifications or experience required to set up as an LA, so there are good ones, and very poor ones out there!

If your parents are not getting the service they feel they signed up for, then write to the Manager of the LA and raise the issues. If you are looking to cancel the contract through their failings, you need documentary proof you have given them a chance to improve. Give them 10 working days to reply, stating how they will get their act together and earn their fees!

Are they members of ARLA or similar? You can also report there if they do not pull their socks up.

sandsni

I don't want to give too many specifics right now in case it makes it too recognisable for anyone reading (I would hate to give the wrong impression if my thoughts on the LA prove to be unjustified), and I'm also hoping it's just teething troubles. I have dealt with a few people from the letting agency and have made it clear we expected a bit more expertise than they have so far provided. We're not planning on making any rash decisions, so we'll wait and see how they handle things over the next few months. I just have a tendency to want to settle things in my own mind and prepare a few contingencies so I know what our options are.

sandsni

Had a good conversation with the tenant on Wednesday night which cleared up a few things between us and him, but:-

Found out yesterday (by scrolling down an email the LA sent me) that the LA had told the tenant we had said they could "go ahead with any work they wished". It certainly explained why the tenant thought it was ok to lift a carpet without asking - they were acting in all good faith that we had said they could do whatever they wanted! This was absolutely not the case. We gave verbal consent to 3 specific things the tenant wanted to do. I've emailed the LA to point out his error and I'm waiting on a response, but it seems to be his habit to send emails about 5 min before leaving the office so we can't do anything about it until the next working day.
Would it be reasonable for me to ask that we be copied in on any further communication between the tenant and LA? I don't know if that's the "done thing". I was hoping we wouldn't have to go down the route of having to do everything on paper, but at this stage I'm seriously losing confidence in the agent and would like to be sure that our wishes are being accurately communicated to the tenant (and vice versa).

G_M

You need to read the contract.

If it is a year's 'management' contract (collecting rent, arranging repairs etc) then it will start when they start doing that job. ie when the property was let and the fees started being charged - NOT when it was signed.

At least that would be my interpretation.

But my god! A fixed 1 year contract? With no get out (short of a claim for incompetance which is very hard to prove). I'd never makea commitment like that the a LA!

If there are things the LA has done that
a) are in conflict with your instructions or
b) which you do not approve of and want to make contrary to your instructions then

WRITE A LETTER.

Put all your instructions (and complaints) very clearly in a letter, keep a copy, and request that they write back acknowledging receipt and that they will comply. The LA works for you so must do as you instruct. But only if you give clear instructions!

Yes of course you can instruct them to copy you in on everything (but beware- they may charge an extra admin fee for every letter!)

Frankly if you have solittletrust in them that you are even considering this, then they will clearly need constant monitoring and you might as well be doing the job yourself.

Read the contract. Are you sure you're tied in for a year....?

sandsni

Thanks GM. I've reread the contract and we are not tied in for a year with the LA, which is a relief.

I admit I have been naive, there were a couple of things I noticed before my mum signed the contract, but foolishly didn't expect them to become an issue. The agency were so attentive and helpful in the early stages of preparation and letting, that I honestly didn't foresee a problem with the management part of the contract. Even the first few "niggles" after the property was let, I just put down to "teething troubles". I didn't know then whether it was the LA or the tenant who were the source of the problem.
I feel responsible because I persuaded my parents (who are both pensioners) to use a letting/management company to (a) make sure we were up-to-date with current legislation regarding housing standards and rights and (b) create a more businesslike relationship between my parents and their tenants.

I initially felt ill-equipped to manage the property for my parents (another reason for suggesting an agency), but the past 2 months have shown me that I am probably as qualified and able as the LA.

Now all I have to do is find a way to clean up my mess as painlessly as possible for all concerned :-/