Finder's Fee

Jodz24

Hi

So we're about to complete on our new home purchase (6 Nov) and are currently renting. Our tenancy agreement ends Feb 2020 and so we requested an early surrender, to which our landlord kindly agreed to on the basis that we pay up until a new tenant is found.

Our agent have advised that we will need to pay the finders fee which is 50% of the first month of whatever price our rented property goes onto the market for. Is this a commonality in this circumstance? Also they have advised that we need to continue paying the monthly rent, council tax AND utilities until the new tenant moves in.

Utilities. Surely that is an agreement between us and the utility provider? If we're not in the property after 6 Nov, not using the gas/electric/water and have transferred to our new property, why would we need to pay the utilities on the rented property? Am I missing something here - I just feel like the wool's being pulled over my eyes a little.

We obviously want them to find a tenant asap as we'll be paying rent AND mortgage on two properties until then.

gettingtheresometime

Perhaps they're talking about standing charges?

G_M

Jodz24 wrote: »

So we're about to complete on our new home purchase (6 Nov) and are currently renting. Our tenancy agreement ends Feb 2020 and so we requested an early surrender, to which our landlord kindly agreed to on the basis that we pay up until a new tenant is found.
Has he agreed this in writing. What exactly does it say?

Our agent have advised that we will need to pay the finders fee which is 50% of the first month of whatever price our rented property goes onto the market for. Is this a commonality in this circumstance?
If you have the LL's consent in writing and without mention of a finders fee, you do not dto pay it. The LL trumps the agent!

Also they have advised that we need to continue paying the monthly rent, council tax AND utilities until the new tenant moves in.
Well naturally - your tenancy will end (according to your agreement with the LL) when a new tenant is found. I assume that means when the new tenancy starts?
Until your tenancy ends (at that point) you remain liable for bills etc.

Utilities. Surely that is an agreement between us and the utility provider? Yes

If we're not in the property after 6 Nov, not using the gas/electric/water and have transferred to our new property, why would we need to pay the utilities on the rented property?
There may be a standing charge even if no usage charges. And CT continues till the tenancy ends.

Am I missing something here - I just feel like the wool's being pulled over my eyes a little.No.
Be grateful the LL has agreed the Early Surrender!

We obviously want them to find a tenant asap as we'll be paying rent AND mortgage on two properties until then.

That is very common.Just one more of the many costs of buying a property......

davidmcn

If you're the occupier (i.e. there's still a tenancy in your name, whether or not you're actually living there) then you're the person responsible for utility bills and council tax. That's only going to end when your tenancy ends. You just need to budget for the overlap when you have the costs for two properties, it's a commonplace part of moving house.

need_an_answer

The finders fee is the fee that the LL would pay the agent to find a tenant.
In these circumstances I assume the LL is asking that that fee is paid by you

Whilst you are not using utilities etc you will still be liable for any standing charges that are payable until your contract is ended

G_M

need_an_answer wrote: »

Whilst you are not using utilities etc you will still be liable for any standing charges that are payable until your contract is ended

Bear in mind also that it is now getting colder.You'll need to act in a 'tenant-like' manner which includes protecting the property. The increasing risk of frost means you'll need to leave the heating on, even if very low or just programmed to come on if the temperature drops below x - to avoid frozen/burst pipes, or damp problems.

You will therefore have some heating bills.


Your tenancy agreement may also require you to advise the LL if the property is 'unoccupied' for more than 30 (or 45, 60) days. This is because his insurance will have the same requirement. So if you move out, and a new tenant takes that long to find, you need tocomply with that in order to avoid the LL's insurance from becoing invalid.