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Help!! Landlord Estate Agents Commission fees

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shari123
shari123 Posts: 5 Forumite
in House buying, renting & selling
Hi all,

I am in desperate need of advice.
My husband and I are new landlords and we used a well known high street estate agent to source tenants and rent out the house for a rather sizable commission fee.

We did this for 3 eye watering years of the contract and we're jumping up and down when we came to the end of the agreement. Our tenants agreed to renew directly with us so as to remove the rather poor service of the agents. The agents have cottoned on to this and are saying that the contract states that the commission is payable to them for the entire time the tenants remain in the property and this includes any extension or renewal and are now demanding payment.
Does this sound right to anyone?
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  • newbie1980
    newbie1980 Posts: 2,016 Forumite
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    shari123 wrote: »
    Hi all,

    I am in desperate need of advice.
    My husband and I are new landlords and we used a well known high street estate agent to source tenants and rent out the house for a rather sizable commission fee.

    We did this for 3 eye watering years of the contract and we're jumping up and down when we came to the end of the agreement. Our tenants agreed to renew directly with us so as to remove the rather poor service of the agents. The agents have cottoned on to this and are saying that the contract states that the commission is payable to them for the entire time the tenants remain in the property and this includes any extension or renewal and are now demanding payment.
    Does this sound right to anyone?

    no you can sack you agent at any time. The contracts are normally 1 year ones but you can normally move at any time

    i am a landlord of 3 properties and took my properties off a agent for poor service
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    shari123 wrote: »
    Does this sound right to anyone?


    What does the contract you agreed to say? You are in the best position to answer your question as you are the only one who can see the terms.
  • shari123
    shari123 Posts: 5 Forumite
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    These are the terms we are not so sure about:

    In the event that xxxxxxxintroduces a Tenant who enters into occupation of the Property, the Commission shall become payable to us for the entire duration of the Tenant!!!8217;s occupation under the Tenancy.

    - The Commission is calculated as a percentage of the rent for the entire period during which a Tenant remains in occupation of the Property including an initial term or any extension or renewal of each Tenancy. For your convenience we agree to accept payment in equal monthly amounts throughout the duration of each Tenants occupation. However, in the event that your Tenant leaves the Property prior to the end of the contracted fixed term, the full balance of fees, for the remaining term, will become payable immediately.
  • shari123
    shari123 Posts: 5 Forumite
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    That's very helpful thanks
  • shari123
    shari123 Posts: 5 Forumite
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    @newbie 1980 thanks for you advice

    @mije1983 if I didn't need the advice, I wouldn't be asking for ADVICE on the thread. Iam in the best position to answer my question , what????
  • mrginge
    mrginge Posts: 4,843 Forumite
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    shari123 wrote: »
    Hi all,

    I am in desperate need of advice.
    My husband and I are new landlords and we used a well known high street estate agent to source tenants and rent out the house for a rather sizable commission fee.

    We did this for 3 eye watering years of the contract and we're jumping up and down when we came to the end of the agreement. Our tenants agreed to renew directly with us so as to remove the rather poor service of the agents. The agents have cottoned on to this and are saying that the contract states that the commission is payable to them for the entire time the tenants remain in the property and this includes any extension or renewal and are now demanding payment.
    Does this sound right to anyone?

    Hi.

    I think answer to your question lies in this -
    shari123 wrote: »
    In the event that xxxxxxxintroduces a Tenant who enters into occupation of the Property, the Commission shall become payable to us for the entire duration of the Tenant!!!8217;s occupation under the Tenancy.
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    edited 12 July 2018 at 9:38PM
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    shari123 wrote: »
    Iam in the best position to answer my question , what????

    I didn't say you didn't need advice, but from the information you posted originally, you were in the best position to answer it. Because of all the people on the forum, YOU are (were) the only one who knows what the contract says about it. We don't (didn't) know what you agreed or negotiated with the LA before you signed with them. Not all contracts are the same, so before you made your 2nd post it was impossible to answer.

    However, now you have posted the clause, unfortunately it seems on the face of it that you do owe the LA. So now you have to make a decision as to whether it is better to keep presumably good tenants in situ, or to get rid of them and get new ones in that won't make you subject to this clause.

    It's no different to an EA introducing a buyer to a property, then you sack the EA and go with another one, but the orginal buyer ends up purchasing the house. You'd probably owe EA1 the commission (and possibly EA2 depending on your contract).
  • sal_III
    sal_III Posts: 1,953 Forumite
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    shari123 wrote: »
    These are the terms we are not so sure about:

    In the event that xxxxxxxintroduces a Tenant who enters into occupation of the Property, the Commission shall become payable to us for the entire duration of the Tenant!!!8217;s occupation under the Tenancy.

    - The Commission is calculated as a percentage of the rent for the entire period during which a Tenant remains in occupation of the Property including an initial term or any extension or renewal of each Tenancy. For your convenience we agree to accept payment in equal monthly amounts throughout the duration of each Tenants occupation. However, in the event that your Tenant leaves the Property prior to the end of the contracted fixed term, the full balance of fees, for the remaining term, will become payable immediately.
    If this is the only contract clause that deals with the matter you are fine.

    This only means you have to pay them fee for the entire duration of the tenancy even if the tenant leaves.

    Since you will be signing a new tenancy agreement with different wording, one that is not using their services. It won't be a renewal or extension, so no fee payable to the EA.

    They are likely to try and badger you to pay, just call their bluff and refuse.

    Also see if you have some sort of an agreement with the agency that might need terminating with a notice or the like.
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    sal_III wrote: »
    It won't be a renewal or extension, so no fee payable to the EA.

    Depends if they have already renewed. It's not clear either way from the first post.
    shari123 wrote: »
    Our tenants agreed to renew directly with us
  • Alter_ego
    Alter_ego Posts: 3,842 Forumite
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    shari123 wrote: »
    payable to us for the entire duration of the Tenant!!!8217;s occupation under the Tenancy.
    .

    Perhaps terminate the tenancy, then go onto rolling would do it? Or a new tenancy with (slightly) different terms?
    I am not a cat (But my friend is)
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