Finders fee for tenants in situ?

Maud2013

I'm buying a buy-to-let flat which is currently rented out. The tenants would like to stay, however the rental agency that the current owner uses will charge a finders fee for doing this! This seems unreasonable given that the current owner had already paid once for the tenants finders fee. I will be managing the flat myself. I don't want to make the tenants have to move, but at the same time I don't want to pay what will be more than a month's rental income for this. Is this commonplace?

G_M

You have no contract with the current agents therefore you are not liable for any fee. Just ignore them.

Unrelated, make sure you do 'due diligence' on the tenants, and the tenancy:

* is it an AST?
* is rent up to date?
* are the tenants reliable?
* have you seen their references?
* what happened to their deposit?
* are they in a fixed term?
* are there any outstanding issues (eg repairs they've reported)?


Don't forget your Landlord & Tenant Act 1985 S3 responsibility on taking over.

antrobus

Maud2013 wrote: »

... however the rental agency that the current owner uses will charge a finders fee for doing this! ...

The time honoured response would be to refer them to the reply given in Arkell v Pressdram (1971).

Guest101

Maud2013 wrote: »

I'm buying a buy-to-let flat which is currently rented out. The tenants would like to stay, however the rental agency that the current owner uses will charge a finders fee for doing this! This seems unreasonable given that the current owner had already paid once for the tenants finders fee. I will be managing the flat myself. I don't want to make the tenants have to move, but at the same time I don't want to pay what will be more than a month's rental income for this. Is this commonplace?

They're going to charge you??


Wow, they're absolutely bonkers. No contract.

Maud2013

Apparently this is common! Even the estate agent selling the property (who is not the letting agent) says that this is the norm...

fairy_lights

Why would you have to pay a finders fee? You don't have a contract with the letting agent and neither does the tenant.

nidO

If they send you any kind of bill for a finders fee, return it unpaid with a bill of your own to them for a keepers fee, of at least twice the amount.
If they query it, tell them its your fee for accepting to keep them on as managing agents for your property and your tenant.

jbainbridge

You don't state if you are going to continue using the letting agent ... so are you?

lemontart

!!!!!!. you are buying a property with SITTING tenants

lemontart

antrobus wrote: »

The time honoured response would be to refer them to the reply given in Arkell v Pressdram (1971).

An unlikely piece of British legal history occurred in what is now referred to as "the case" of Arkell v. Pressdram (1971) (pronounced as "Arkell and Pressdram".) The plaintiff was the subject of an article relating to illicit payments, and the magazine (Private Eye) had ample evidence to back up the article. Arkell's lawyers wrote a letter which concluded: "His attitude to damages will be governed by the nature of your reply". The magazine's response was, in full: "We acknowledge your letter of 29th April referring to Mr J. Arkell. We note that Mr Arkell's attitude to damages will be governed by the nature of our reply and would therefore be grateful if you would inform us what his attitude to damages would be, were he to learn that the nature of our reply is as follows: !!!! off." In the years following, the magazine would refer to this exchange as a euphemism for a blunt and coarse dismissal: for example, "We refer you to the reply given in the case of Arkell v. Pressdram"; or, perhaps, "His reply was similar to that given to the plaintiff in Arkell v. Pressdram".

Guest101

Maud2013 wrote: »

Apparently this is common! Even the estate agent selling the property (who is not the letting agent) says that this is the norm...

Hi Pal,


Can I get your address? I'd like to send you an invoice, I did some work for this chap 2 years ago, and I'd like you to pay for it now too.


Thanks


G101