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    • shari123
    • By shari123 12th Jul 18, 8:16 PM
    • 5Posts
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    shari123
    Help!! Landlord Estate Agents Commission fees
    • #1
    • 12th Jul 18, 8:16 PM
    Help!! Landlord Estate Agents Commission fees 12th Jul 18 at 8:16 PM
    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?
Page 1
    • newbie1980
    • By newbie1980 12th Jul 18, 8:18 PM
    • 1,950 Posts
    • 23,405 Thanks
    newbie1980
    • #2
    • 12th Jul 18, 8:18 PM
    • #2
    • 12th Jul 18, 8:18 PM
    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?
    Originally posted by shari123
    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
    • By mije1983 12th Jul 18, 8:26 PM
    • 3,542 Posts
    • 20,278 Thanks
    mije1983
    • #3
    • 12th Jul 18, 8:26 PM
    • #3
    • 12th Jul 18, 8:26 PM
    Does this sound right to anyone?
    Originally posted by shari123

    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
    • By shari123 12th Jul 18, 8:39 PM
    • 5 Posts
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    shari123
    • #4
    • 12th Jul 18, 8:39 PM
    • #4
    • 12th Jul 18, 8:39 PM
    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
    • By shari123 12th Jul 18, 8:41 PM
    • 5 Posts
    • 0 Thanks
    shari123
    • #5
    • 12th Jul 18, 8:41 PM
    • #5
    • 12th Jul 18, 8:41 PM
    That's very helpful thanks
    • shari123
    • By shari123 12th Jul 18, 8:44 PM
    • 5 Posts
    • 0 Thanks
    shari123
    • #6
    • 12th Jul 18, 8:44 PM
    • #6
    • 12th Jul 18, 8:44 PM
    @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
    • By mrginge 12th Jul 18, 9:35 PM
    • 4,688 Posts
    • 8,916 Thanks
    mrginge
    • #7
    • 12th Jul 18, 9:35 PM
    • #7
    • 12th Jul 18, 9:35 PM
    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?
    Originally posted by shari123
    Hi.

    I think answer to your question lies in this -

    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.
    Originally posted by shari123
    • mije1983
    • By mije1983 12th Jul 18, 9:36 PM
    • 3,542 Posts
    • 20,278 Thanks
    mije1983
    • #8
    • 12th Jul 18, 9:36 PM
    • #8
    • 12th Jul 18, 9:36 PM
    Iam in the best position to answer my question , what????
    Originally posted by shari123
    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).
    Last edited by mije1983; 12-07-2018 at 9:38 PM.

    • sal_III
    • By sal_III 12th Jul 18, 9:42 PM
    • 653 Posts
    • 666 Thanks
    sal_III
    • #9
    • 12th Jul 18, 9:42 PM
    • #9
    • 12th Jul 18, 9:42 PM
    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.
    Originally posted by shari123
    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
    • By mije1983 12th Jul 18, 9:45 PM
    • 3,542 Posts
    • 20,278 Thanks
    mije1983
    It won't be a renewal or extension, so no fee payable to the EA.
    Originally posted by sal_III
    Depends if they have already renewed. It's not clear either way from the first post.

    Our tenants agreed to renew directly with us
    Originally posted by shari123

    • Alter ego
    • By Alter ego 12th Jul 18, 9:47 PM
    • 2,485 Posts
    • 2,445 Thanks
    Alter ego
    payable to us for the entire duration of the Tenant!!!8217;s occupation under the Tenancy.
    .
    Originally posted by shari123
    Perhaps terminate the tenancy, then go onto rolling would do it? Or a new tenancy with (slightly) different terms?
    Loose means not tight, Lose means something is lost, simples no?
    Ignore me if you like, it's not the real me anyway.
    • mije1983
    • By mije1983 12th Jul 18, 9:56 PM
    • 3,542 Posts
    • 20,278 Thanks
    mije1983
    Perhaps terminate the tenancy, then go onto rolling would do it? Or a new tenancy with (slightly) different terms?
    Originally posted by Alter ego
    It would be good to know if there are any other clauses that relate to this. I'm not so sure that the OP wouldn't be liable even with a new agreement due to ...

    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
    I would view it that the use of the word 'including' doesn't mean that it is restricted to those 3, and that if the tenant is still in the property then the money is owed to the LA.

    Now if it has said 'during' rather than 'including', it could be argued that a new agreement would absolve the OP.

    • Thrugelmir
    • By Thrugelmir 12th Jul 18, 9:59 PM
    • 61,046 Posts
    • 54,256 Thanks
    Thrugelmir
    Does this sound right to anyone?
    Originally posted by shari123
    Yes. For the simple reason that everybody would use agents to find suitable tenants then sack them at the first available opportunity. The fact that your tenants have stayed may in part be down to the professional nature of your agents in vetting prospective tenants.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • shari123
    • By shari123 13th Jul 18, 9:29 AM
    • 5 Posts
    • 0 Thanks
    shari123
    Hi thanks every one for your input.
    The tenants have stayed because they love the house and the schools around the area are good. We as landlords have been pretty decent and been very responsive to emergencies, repairs etc. nothing to do with the Letting agents, they have done zilch. We finished our agreed contract of 3 years and we want out, surely we should have the flexibility to end the contract if we so wish.
    • Out, Vile Jelly
    • By Out, Vile Jelly 13th Jul 18, 10:30 AM
    • 4,207 Posts
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    Out, Vile Jelly
    I suggest joining a Landlords Association and obtaining specific professional advice.
    They are an EYESORES!!!!
    • rtho782
    • By rtho782 13th Jul 18, 11:26 AM
    • 1,128 Posts
    • 820 Thanks
    rtho782
    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.
    Perhaps you could argue that doesn't apply if you let them go onto a rolling tenancy, as that is not an initial term, extension, or renewal.
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    • MobileSaver
    • By MobileSaver 13th Jul 18, 1:25 PM
    • 1,446 Posts
    • 2,032 Thanks
    MobileSaver
    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.
    Originally posted by shari123
    Perhaps you could argue that doesn't apply if you let them go onto a rolling tenancy, as that is not an initial term, extension, or renewal.
    Originally posted by rtho782
    Unfortunately for the OP, that would be a flawed argument as the clause only says "including" those things which means other situations (such as a rolling tenancy) would also trigger commission being due.

    However the High Court has already ruled that such clauses are unfair and thus unenforceable where the agent "plays no part in persuading the tenant to stay, and does not collect the rent or manage the property."

    Foxton's use of unfair terms

    Of course, only the OP here has seen the full contract they signed but nevertheless I would point the agent in the direction of the ruling and advise them that you will not be paying any further commission but if they believe the High Court ruling does not apply to them then please advise why...
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