Can the letting agents cancel fully managed contract with the Landlord?

Gary_Laurus

After exactly 6 months in to the current contract, Letting agents gave me 2 weeks notice cancelling my 12 months (I am the LL) fully managed letting contract with them.

I have used them for several years to manage the property. Several issues because I am oversees landlord.

They cancelled because finally, after years, I pointed out that they are inefficient at solving issues (they lack knowledge about simplest solutions to problems), incompetent (messed up things like the day the tenants were supposed to move in), and the fact that I pay them for a fully managed letting, but I have to manage the property myself(find plumbers, fix boiler issues etc) because their workers (plumbers) are expensive than the market rates (I am sure no fiduciary benefits :-) involved), their employees are incompetent, and they found tenants for below market rates for a flat like this and who are probably illegally running a boarding house at my property.

The letting agents have always been very "irresponsible" with contracts with both myself (LL) and the previous tenants

1. For example when previous tenants erroneously signed an AST for 12 months, when the tenants thought they were signing for only 6 months. When the tenants tried to leave after 6 months the letting agents Fined/charged them 1 months rent (called it "re advertising fees")

2. Last year about 1 week after signing the contract between LL and letting agent, the letting agents wanted to increase the fees they charge! but then backed off when I suggested I change letting agents.

"It's all in the contract"

Not sure what type of a contract I have with the letting agents, because I didn't receive one this time. 

I have the contact with the tenants.

Just too stressed out (also dealing with a boiler breakdown!) to clearly see the options. 

Since I am rather worried about this, I would be most grateful for any advice.
Thanks in advance 

[Deleted User]

Gary_Laurus said:

After exactly 6 months in to the current contract, Letting agents gave me 2 weeks notice cancelling my 12 months (I am the LL) fully managed letting contract with them.

I have used them for several years to manage the property. Several issues because I am oversees landlord.

They cancelled because finally, after years, I pointed out that they are inefficient at solving issues (they lack knowledge about simplest solutions to problems), incompetent (messed up things like the day the tenants were supposed to move in), and the fact that I pay them for a fully managed letting, but I have to manage the property myself(find plumbers, fix boiler issues etc) because their workers (plumbers) are expensive than the market rates (I am sure no fiduciary benefits :-) involved), their employees are incompetent, and they found tenants for below market rates for a flat like this and who are probably illegally running a boarding house at my property.

The letting agents have always been very "irresponsible" with contracts with both myself (LL) and the previous tenants

1. For example when previous tenants erroneously signed an STA for 12 months, when the tenants thought they were signing for only 6 months. When the tenants tried to leave after 6 months the letting agents Fined/charged them 1 months rent (called it "re advertising fees")

2. Last year about 1 week after signing the contract between LL and letting agent, the letting agents wanted to increase the fees they charge! but then backed off when I suggested I change letting agents.

"It's all in the contract"

Not sure what type of a contract I have with the letting agents, because I didn't receive one this time. 

I have the contact with the tenants.

Just too stressed out (also dealing with a boiler breakdown!) to clearly see the options. 

Since I am rather worried about this, I would be most grateful for any advice.
Thanks in advance 

STA? Do you mean AST? 

Why would you receive a new contract with the letting agency every time there’s a new tenancy? That seems odd. I’m also surprised that you’ve continued to use a letting agency you find incompetent to manage the properties. 

Without your contract no one can say if the letting agency is breaching the contract by terminating it. That said I would think it possible for either party to end the contract with notice. 

Suggest you find a new letting agency as this one no longer wants to deal with you. I also suggest you write to the tenants pronto with a new address in England or Wales for the serving of notices and details of where yo start paying the rent. 

Read Post 9: Letting agents: how should a landlord select or sack?

getmore4less

If they are that bad they have done you a favour and saved you having to terminate them.

  

AdrianC

Gary_Laurus said:

After exactly 6 months in to the current contract, Letting agents gave me 2 weeks notice cancelling my 12 months (I am the LL) fully managed letting contract with them.

What does the contract say about notice?

I am oversees landlord.

Well, that rules out self-managing...

They cancelled because finally, after years, I pointed out that they are inefficient at solving issues ... incompetent ... and the fact that I pay them for a fully managed letting, but I have to manage the property myself

Saves you giving them notice, then.

(find plumbers, fix boiler issues etc) because their workers (plumbers) are expensive than the market rates

Umm, yes. That's the way it works with fully managed. You pay for hands-off service, you pay more than if you were DIYing and getting several quotes.

their employees are incompetent, and they found tenants for below market rates for a flat like this and who are probably illegally running a boarding house at my property.

Yet more reasons for you not to want to continue using them?

The letting agents have always been very "irresponsible" with contracts with both myself (LL) and the previous tenants

1. For example when previous tenants erroneously signed an STA for 12 months, when the tenants thought they were signing for only 6 months.

Didn't the tenants bother reading when they signed?

Not sure what type of a contract I have with the letting agents, because I didn't receive one this time.

The same one as before. Your contract with your tenants changing doesn't change your contract with your agent.

Since I am rather worried about this, I would be most grateful for any advice.
Thanks in advance

You have three options.
1. Return to the UK and self-manage.
2. Give your tenants notice and sell the property.
3. Find a new agent.

AnotherJoe

This reminds me of the old joke;
"waiter I'm not paying the bill the meal was horrible"
"sir, you've eaten it all"
"yes that's another problem the portions were too small"  

macman

How do you know you are 6m into the 'current contract', if you don't actually have a contract? What defines the starting date? You may not have a written contract (which I find not credible with an LA) but you have most certainly accepted a verbal contract. 
You appear to have accepted poor service and unjustified charges for 'several years' now, so why are you so concerned if the LA suddenly wants to breach the contract and walk away? it sounds like they are doing you a favour.

Murphybear

I suggest you find an ARLA registered agent.  To be registered the agent has to pass the ARLA exams and they are not that easy.  Preferably the Advanced Legal exam.  This is difficult.  How do I know?  I have passed it 

greatcrested

I'm not clear what advice you want:

1) to know if the agent can legally cancel? We can't read your contract,so cannot answer

2) to know if you can cancel due to the poor service? Does not matter as the agent is cancelling!

3) to know what to do next? Adrian answered above

You have three options.
1. Return to the UK and self-manage.
2. Give your tenants notice and sell the property.
3. Find a new agent.

4) to know what to do about your tenants? You need to inform them of whatever your decison is. In writing. ie

1. how to pay you direct, and what address to use "for serving notices"

2. S21 Notice (note expiry must be 6 months)

3. who the new agent is

saajan_12

Gary_Laurus said:

After exactly 6 months in to the current contract, Letting agents gave me 2 weeks notice cancelling my 12 months (I am the LL) fully managed letting contract with them.

I have used them for several years to manage the property. Several issues because I am oversees landlord.

They cancelled because finally, after years, I pointed out that they are inefficient at solving issues (they lack knowledge about simplest solutions to problems), incompetent (messed up things like the day the tenants were supposed to move in), and the fact that I pay them for a fully managed letting, but I have to manage the property myself(find plumbers, fix boiler issues etc) because their workers (plumbers) are expensive than the market rates (I am sure no fiduciary benefits :-) involved), their employees are incompetent, and they found tenants for below market rates for a flat like this and who are probably illegally running a boarding house at my property. - yeah, or they're just finding the first tenant / worker because they're not incentivised to increase your profit. Alternative is to find an agent who will spend more time finding the best, but this may also come with a management fee increase. 

The letting agents have always been very "irresponsible" with contracts with both myself (LL) and the previous tenants

1. For example when previous tenants erroneously signed an STA for 12 months, when the tenants thought they were signing for only 6 months. When the tenants tried to leave after 6 months the letting agents Fined/charged them 1 months rent (called it "re advertising fees") - so they actually signed a 12 month and wanted to leave early. Then reletting costs is reasonable, to cover rent during the void plus cost of advertising etc. 

2. Last year about 1 week after signing the contract between LL and letting agent, the letting agents wanted to increase the fees they charge! but then backed off when I suggested I change letting agents. - what's irresponsible? Its a negotiation, they asked, you declined, carry on. 

If they're so incompetent, why do you have a problem with terminating the contract and finding another agent? 

If you'd rather stick with them, then we need the last contract to advise on the notice period. 

[Deleted User]

I think it’s same agency the OP had an issue with 2 years ago. 

https://forums.moneysavingexpert.com/discussion/5959265/my-tenant-wants-to-leave-what-should-i-do#latest

eddddy

Gary_Laurus said:

Several issues because I am oversees landlord.

So I guess you're subject to the Non-resident Landlord Scheme. (See https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad)

And presumably you understand the implications of not having a UK letting agent - your tenants will have to register with HMRC, and unless HMRC have approved you to receive rent without tax deducted, the tenants will have to deduct tax and pay it to HMRC.

So, realistically, I guess you need to find a new letting agent. You can probably do that remotely, but it will probably be harder to check them out from overseas. So you might find that the new agent is as bad as the old one. So maybe make sure that you have a flexible contract, that allows you to move to another agent, if required.