Arguing with a rental agency.....

Mrs_Onions

I am after some advice in dealing with a rental issue. I am the Landlord of a flat that has been rented out and managed by an agency for coming up ten years.
Our contract for the agency was due for renewal in January 2017, having been on the same rental scheme for 10 years we had a letter from the agency to say they were going to change our scheme and there would be an admin fee of £360.

We weren't prepared to pay so told the agency that we would not be renewing in Jan. This was giving the required two months notice to end our contract.

There is currently a tenant in the property who only moved in to the prooerty in August. We asked the agency about them remaining in the property and were told we had to pay £510 in fees or they would be given notice.

Despite trying to negotiate it was a no go. As far as I am aware the tenant was served notice on the 5th Dec to leave in Feb 2017.

Is there anyway the tenant can stay without it costing £510? It is distressing to think that the tenant is being booted out after only six months though no fault of their own. Our contract with the agency finishes 3 weeks before the tenants contract finishes with the agency so does the management of the flat become our responsibility so we can tell the tenant to stay and start a new contract with the new rental agency?

Any opinions welcome and needed!

Pixie5740

Is this one of these schemes where you let the property to the letting agency and the letting agent sublets the property to someone else? If so there probably isn't much you can do. If not then the tenant had a contract with you, the landlord, not the letting agent do if you want the tenant to stay then they can.

Remember that notice issued by a landlord doesn't end a tenancy, that can only be done by the tenant or a court.

Mrs_Onions

It is. In effect the rental agency is the tenant and the occupier of the flat is a sub tenant.

We have no desire for the occupier to move out, we just wouldn't pay the money demanded by the agency for them to change the terms and conditions. If the tenant failed to leave I would be fine but the agency would take it through the courts to evict the tenant.

Miss_Samantha

Your relation with the rental agency is primarily governed by the lease you have with them, and perhaps an additional contract.

In broad terms if you are able to end the lease you have with them then the occupier automatically becomes your tenant.

The agency will not evict the occupier because it will cost them for no benefit. It is obviously a tactic to make you cough up money.
They may give notice because that's free but that has not effect on the occupier's tenancy.

G_M

To add to the above, you need to be speaking to the occupier direct. Build a relationship of trust. If you intend to grant them a tenancy yourself once the lease with the agency has ended, discuss that with the occupier, and make clear they will not have to leave since that tenancy between you and him will start immediately on the current arrangement ending.

Will you self-manage?
* take a deposit
* get rent agreed and a tenancy agreement signed
* and start undertaking all a LL's duties


* New landlords: advice, information & links

Miss_Samantha

Note that their existing tenancy would continue, so you would inherit the responsibility for their deposit, if any. A new tenancy would only created if they explicitly agreed.

HouseBuyer77

If the tenant failed to leave I would be fine but the agency would take it through the courts to evict the tenant.

Assuming the agent's tenancy ends in January then I fail to see how they could do that. I'd also be slightly surprised if they did it too, will cost them money for no gain, though a useful bluff for them now.

Thrugelmir

Mrs_Onions wrote: »

It is. In effect the rental agency is the tenant and the occupier of the flat is a sub tenant.

Then the rental agency has to terminate the contract. Why not make contact directly with the tenant and arrange to meet. Then take matters forward from there.

bigfreddiel

Ahhhh. The delights of letting a property! Give me a nice balanced portfolio of stocks and shares.

Cheers fj

bobobski

Miss_Samantha wrote: »

Note that their existing tenancy would continue, so you would inherit the responsibility for their deposit, if any. A new tenancy would only created if they explicitly agreed.

Whether or not the subtenancy ends depends on how the headlease ends - http://www.shoosmiths.co.uk/client-resources/legal-updates/Break-options-and-surrenders-Effect-on-subletting-6278.aspx. It sounds like a rolling break option to me.

Miss_Samantha

bobobski wrote: »

Whether or not the subtenancy ends depends on how the headlease ends.

No, it doesn't if the subtenancy is an assured tenancy.