Change of Tenancy Agreement

The_Shadow

Hi I currently rent a house out through a letting agent.
The 6 month rental period is up for renewal very soon.


Are there any issues with ending the agreement with letting agent and taking on the tenant as a private rental which I would manage myself


I have paid all the tenant find and management fees associated with the let.


The reason being that I have a good tenant and could reduce the rent accordingly by not paying monthly management fees and VAT


I don't know if the tenant would have to move out to end the agreement and then move back in.

mrginge

You need to read the agreement you signed with the agency

G_M

I'm afraid we can't see the contract you signed......

but this may help:

* Letting agents: how should a landlord select or sack?

The_Shadow

G_M wrote: »

I'm afraid we can't see the contract you signed......

but this may help:

* Letting agents: how should a landlord select or sack?

Hi I have looked at the contract I signed, its looks like there is something in the small print under a small section 2 a) to d) terminations of instructions I have a PDF copy but I am not sure If I can download it on to the site.

The_Shadow

mrginge wrote: »

You need to read the agreement you signed with the agency

Here is a copy of the relevant bit of the contract I signed, reading it I don't think I am liable for any letting agents fees if the tenant ends the letting at the end of the 6 month let period. I am not sure if they would have to move out while I resign them up again




2. TERMINATION OF INSTRUCTIONS AND OTHER AGENTS - also see clause 16


a) This Agency Agreement may be terminated by either party serving upon the other seven days notice in writing, unless


the Agent has received an application for the Property and where the proposed Tenant was introduced by the Agent


The Landlord having refused to allow the letting to proceed to the proposed Tenant then the Landlord shall be liable


to pay to the Agent a withdrawal fee equivalent to one months rent subject to a minimum of £400.00.


b) For Rent Collection and Full Management services, this Agreement may not be terminated once a legally binding


Tenancy Agreement has been entered into until such time as the tenancy or any extension written or otherwise has


ended, either by the Tenant bringing the tenancy to an end or on the instructions of the Landlord bringing the


tenancy to an end and the Tenant vacating the Property. In the event that the Landlord brings this Agreement to an


end and the Tenant remains in the Property, then the Agent shall be entitled to charge a further six months


commission based on the charges set out in Part F of this Agreement.


c) if the Landlord has instructed another Agent or Agents to offer the Property to let, then on the occasion of Jordan's


letting the Property it is for the Landlord to notify whichever other Agents he may have instructed.


d) Notification to Jordan's (The Agent) that another party has let the Property must be made in writing by the Landlord


and so long as no Tenant has been found in accordance with this Clause, then no fee will be chargeable. In the event


that a Tenant has been found but the Landlord chooses to accept the applicant of another Agent, then the withdrawal


fee becomes payable.


e) The property management obligations under this agreement commence at the start of the first tenancy. If there are


times when the Property is vacant between tenancies the Property will automatically come under the caretaking


service as described in Part A. If requested caretaking is available prior to the initial letting subject to the Agent being


placed in funds.




would value any comments

G_M

On the face of it the agent is likely to want paying if the current tenant stays. Even if they 'move out' (for day? a week?) and then sign a new contract with you and move in again, if/when the agent finds out........ :huh:


You might well find this is covered however by the Foxton's case......

http://webarchive.nationalarchives.gov.uk/20140402142426/http://www.oft.gov.uk/OFTwork/consumer-enforcement/consumer-enforcement-completed/foxtons/

http://www.rentmanagement.co.uk/articles/750/1/OFT-vs-Foxtons-Case-Update/Page1.html

Plus of course : "possession is 9/10th of the law" so follow my advice in the previous link.

mrginge

Seems pretty clear. If the tenant remains in the property you have to pay six months commission.

Pixie5740

The tenancy doesn't have to be renewed for another 6 months or whatever. You could just let it become periodic therefore getting around any fees the letting agency might charge both you and the tenant for the privilege of changing some dates and pressing Print.

mrginge

Pixie5740 wrote: »

The tenancy doesn't have to be renewed for another 6 months or whatever. You could just let it become periodic therefore getting around any fees the letting agency might charge both you and the tenant for the privilege of changing some dates and pressing Print.

The OP's question relates to management fees not tenancy renewal

Pixie5740

mrginge wrote: »

The OP's question relates to management fees not tenancy renewal

Yes I know but since the OP mentioned renewal and is trying to reduce/cut out fees paid to the agent I thought it worth mentioning renewal fees.

G_M

Pixie5740 wrote: »

The tenancy doesn't have to be renewed for another 6 months or whatever. You could just let it become periodic therefore getting around any fees the letting agency might charge both you and the tenant for the privilege of changing some dates and pressing Print.

This would not get round his contract terms:

In the event that the Landlord brings this Agreement to an end and the Tenant remains in the Property, then the Agent shall be entitled to charge a further six months commission based on the charges set out in Part F of this Agreement.

Whether those terms contravene OFT unfair terms guidelines is a diffrerent matter.