Agent wants fee on tenancy renewal but didn't renew

JexMeTex

Hi,
Quick advice. Had same tenants for over 8 years now with several tenancy renewals (1 yr , 3yr etc) through agent. Agent has been taking 5% every year. Also took cut from tenant before rules changed.
Tenancy agreement ended earlier this year but no contact made from the agent. So I continued the agreement with the tenants on a monthly basis (i.e. no renewal agreement as such). Agent some weeks later makes contact saying they had some issue with their database or something and why they didn't contact me. But wants invoice paid for a year saying original agreement states I owe them. 

My reservations - First they have not made an agreement and never contacted me in time. Second, having had the same tenants for this many years is this fee even justified?
Thoughts, experience etc?
Thanks :-)

dimbo61

Tell agents to jog on.
Tenant now on periodic tenancy because they failed to get there act together during lockdown.

JexMeTex

dimbo61 said:

Tell agents to jog on.
Tenant now on periodic tenancy because they failed to get there act together during lockdown.

In fact the renewal was just before lockdown.

AlexMac

Agree- I had an agent try this on- and they didn't even manage the property or collect rent, so no % fee; I just used them to find, reference check the tenant and set up the AST.  In fact, as it's not rocket science to collect rents and commission the odd repairs you too could do this; although 5% isn't too bad a management fee... 

JexMeTex

AlexMac said:

In fact, as it's not rocket science to collect rents and commission the odd repairs you too could do this; although 5% isn't too bad a management fee... 

5% is without management. I do the rest, repairs etc.

saajan_12

JexMeTex said:

Hi,
Agent some weeks later makes contact saying they had some issue with their database or something and why they didn't contact me. But wants invoice paid for a year saying original agreement states I owe them. 
My reservations - First they have not made an agreement and never contacted me in time. 

The question is really what was agreed with the agent? The bit that wasn't renewed was the fixed term agreement between you and the tenant but this isn't the same thing. The contract with the agent could have said eg you pay 5% of any rent from a tenant they introduced? £X fixed charge for a renewal? £X every year while you have that tenant? Please quote the wording. 

JexMeTex said:

Second, having had the same tenants for this many years is this fee even justified?

This is business - sometimes you feel like you overpaid (either in the annual amount or how long you keep paying). Maybe the agent tried to find a long term tenant for you, to minimise your voids and in return they base their commission on the length of the overall tenancy, ie you keep paying as long as the tenant is in place. Another agent might have charged a lump sum but found you a shorter term tenant, meaning you have to keep paying new lump sums plus lose rent during voids. Or maybe they just got lucky, did no extra work and are rolling in the annual commission. That feeling doesn't necessarily change what you agreed though. 

JexMeTex

Please quote the wording. 

The terms they have referred me to are: 

The commission fee is payable for any such tenant whether the Tenancy continues as a fixed term, renewal, statutory continuation, or otherwise and whether or not the tenants continued occupation has been arranged or negotiated by us or even if you dispense with our services during the tenancy or any extension thereof.
However, I can't even find this agreement with them, only the agreement they provided between tenant and landlord.