Letting agent is not paying me my rent? What can I do?

G_M

I suggest you

* read and understand the contract you signed with the agent to determine i) what fees are chargeable by them and ii) when rent should be passed on by them

* either i) self-manage the next tenancy, or ii) ensure you understand (and enforce) the terms of your agent contract or iii) find another agent

See also Letting agents: how should a landlord select or sack?


The difficulties you seem to behaving understanding and/or enforcing this contract make me wonder what other aspects of your business you are unsure about or ignoring. See

* New landlords: advice, information & links

MEM62

ginashamz wrote: »

What I do not understand is why the estate agent are charging me 6 months fees when the tenants are moving out on the 31st January.

Simple, because they are cowboys and taking the pi** out of you.

Did you ask them why they allowed the tenant to break the AST? If so what was their response?

You really need to familiarise yourself with your responsibilities as a landlord. You cannot just hand everything over to and agent and wash your hands of it as you have obligations to ensure things are done properly.

G_M

Originally Posted by ginashamz
What I do not understand is why the estate agent are charging me 6 months fees when the tenants are moving out on the 31st January.

MEM62 wrote: »

Simple, because they are cowboys and taking the pi** out of you.

I'm no fan of agents, but I disagree.

The reason they are charging 6 months fees is almost certainly because that is what the OP agreed to pay. Since he did not have a copy of his contract till today, and has almost certainly signed it without reading and/or understanding it, it is not surprising he does not understand!


Did they charge a tenant-find fee? You don't mention it so I'm guessing not. Instead, their contract will specify you owe the 6 months fees (even if tenant leaves) as they have to cover their upfront costs of finding tenat and setting up the tenancy. Seems fair.

saajan_12

ginashamz wrote: »

UPDATE:
The estate agent fees comprises of 8% rent plus VAT per month plus £50 deposit fee. For 6 months, this equates to £668.

So what they did was deduct £668 from December's rent (£1000 PCM) which equals £332.
..
What I do not understand is why the estate agent are charging me 6 months fees when the tenants are moving out on the 31st January. Surely they should be charging only for the months the tenants have occupied the flat?

Re 6 months commission:
You need to read the contract with your EA. Often these will include a clause stating if tenants move out or the tenancy is terminated early, then you still owe the EA's commission for the initial fixed term. They will argue this is fair because they still did the same work to advertise, do viewings, reference, sort paperwork, check in for the tenants so it isn't fair they are penalised for you / tenants cuttign the tenancy short. You might argue that they didn't find the perfect long term tenants.. but "fairness" might make you feel better about it but its irrelevant if you AGREED to pay the 6 months commission.

Re agreeing to tenants leaving
Has your agent completed the agreement with the tenants to terminate on 31 Jan? Have they agreed any cost of this?

- If YES, then its a done deal as far as the tenants are concerned. If the agent didn't have the right to do that without consulting you, (check your agreement and anything you said in emails) then you need to calc your losses and try to claim them from the agent.

- If NO, then find out what has been discussed and whether you can ask for some of your costs to be reimbursed.

Costs could be
* rent / bills during the void in tenants
* EA commission for the 4 months you're paying as a penalty for terminating early and any other costs for finding new tenants
* New deposit registration fee
* redecoration / repairs / cleaning needed between tenants

HampshireH

OP has directly agreed with tenant they can leace. Their OP states they are fine with this.

Hardly the letting agents fault.

What OP should have said when they spoke to the tenant was.

"Ok if you choose to move out in january you will remain liable for rent and bills until the end of the tenancy you signed on x date.

Your tenancy has no break clause in the first 6 months. If the rent erc is not paid the matter will be referred to court for rent arrears. If tenants can be found in the meantime you will only be charged the find fee by the agent and I will agree to an early surrender on the completion of a new tenancy being signed by a new tenant and fees/rent paid up before your tenancy ends."

Sounds like OP accepted early surrender and now wants to wiggle out of their contractual requirements with the agency.

Jumblebumble

ginashamz wrote: »

I let out my property from the 25th November on a 6 month tenancy. I found out about 2 weeks ago that the tenants are moving out on the 31st January 2019 and the letting agent has apparently found new tenants for the 1st February.

I have spoken to the existing tenant and I am fine with the fact that they will be "breaking" the 6 month agreement, but I will want any monies cleared before they leave. The tenant has shown me proof that he has paid the letting agent, but I have STILL not received December's rent and January's rent.

The letting manager keeps telling me he will sort it out but I have lost faith. What options do I have now??? What can I do? Can I take them to court?

I never cease to be amazed at how some Landlords run their businesses

Why would anyone consider allowing a letting agency collect the rent as one risks them going bust and the money disappearing or as has happened the letting agency using the rent money for cashflow

Why would anyone place money in a deposit scheme rather than use the insured one at £22.00
This avoids any hassle if the tenent dies ( which can be a major disruption) or the deposit scheme act in an incompetant manner
JumbleBumble