Landlord: Cancel estate agent, cut fees with same tenants & new online agreement?

DanVagabundo

Hi there folks - my first post here.

I'm a landlord currently cycling through Africa volunteering for charity.

My tenants of three years are coming up for contract renewal. I'm paying Douglas & Gordon 10% for basically doing nothing; just passing on the rent. Seems like money for old rope.

Do you know if I can end my contract with them, keep the same tenants and then agree a new contract with an all-inclusive online service? I'd be saving myself almost £2k a year.

I have read that if an estate agent is not providing any service, then they can no longer charge you after the end of the contract, in spite of finding the initial tenant - is this the case?

I hope so. Trying to research on Zanzibari internet is proving difficult. Many thanks for your response.

BitterAndTwisted

Why do you need the tenants to sign a "contract renewal"? Why not just have them go onto a periodic tenancy?

sharpee

The is the same thing I've been contemplating myself. After a few issues I've made the decision to manage the property myself as my LA do nothing for an extortionate fee. But I am doing it through the use of a solicitor to keep everything proper.

G_M

None of this concerns he tenant, or their tenancy. Their contract is with you, not the agent. The agent just works for you as an intermediary (an 'agent' if you will!) to collect rent for you etc.

You can sack your employee (agent) at any time, subject to the terms of the contract you signed with them. Clearly you need to read/check it.

Remember also:
* it is law that you give the tenants a contact address for you, "for the serving of notices" in Engl or Wales. Presumably this is c/o the agent at present. You will need a new one.

* if the tenant pay the rent direct to you, and you are abroad (as opposed to paying the agent who is in UK) then the tenants should deduct YOUR tax before paying the rent, as HMRC can chase the tenants for this. See here.

* you will also need arrangements in place to deal with repairs, gas inspections etc. You can't expect the tenants to email you and hope you respond, and how will you get the leaking roof fixed if you are abroad?

If removing the agents, make sure your tenants know well in advance what you are doing and why. Make sure you formally instruct them where to pay rent in future, from what date, who to contact about repairs, AND what address to use "for the serving if notices" on you.

edit: just seen sharpee's post above - no idea why he needs a solicitor for this.

edit 2: also not clear what the 'online includive service ' is? Is this an online agent? Or as I suspect Bitterandtwisted interpreted, do you mean some new contract /tenancy agreement with the tenants?

DuncanCat

One thing is read your contract very carefully as my contract contained a clause which would require me to pay 10 months rental as a finders fee in the event that I ended the contract with the agent but retained the same tenants.

DanVagabundo

Thanks for your responses folks - I'll take a good look through the contract. Hopefully I can wait until the end of the current contract and instruct the estate agents that I no longer require their services.

I would like to have a standard tenancy agreement and contract for 12 months. Then use an online service like openrent.co.uk who arrange the contracts for £20 flat fee. I haven't used them but it seems kosher.

I will speak to my tenants and the estate agents and instruct them accordingly. I'll post back here to let you know the outcome.

Best wishes. Thanks for your helpful advice.

jimjames

I've stopped an agent at the end of a contract in the past. I didnt use another contract, just re-used their one again but that would only save you £20.

G_M

DanVagabundo wrote: »

..

I would like to have a standard tenancy agreement and contract for 12 months.

I will speak to my tenants and the estate agents and instruct them accordingly. I'll post back here to let you know the outcome.

What you want may, of course, not be what your tenants want. They may want a periodic tenancy, that requires no new paperwork and no commitment or fe on either side.

If that's what they want, you'll be faced with the choice of
1) agreeing or
2) giving them notice (S21) and losing your tenants, having the cost of fonding new ones, and losing rent in between tenants....

DanVagabundo

The tenants want another 12 month contract which suits me too. I'll speak to them tomorrow, and agree a new contract with the same terms.

Thanks again one and all. Seems crazy that anyone continues to pay estate agents when renewing contract with same tenants, given that it is so simple to avoid paying their fees. (Not management charges, just ongoing 'finders fees'). This will save me a lot of money - thank you

Werdnal

Make sure you sort out their deposit too! I assume the current LA has protected it, so you will need to have it either transferred to you, or released and reprotected, then provide the tenants with a new copy of the prescribed information.