legal quandry

razil

my tenant wants to renew but I've told him I'm not going through the same agent again as they are too pricey and charge a lot to renew which means I lose money on the let, it barely breaks even on the best of times.

Anyway there is stuff about him being their client and they own him essentially so if he renews direct they want the cash. He asked if he could renew via my new agent who is going in to do some marketing stuff, I said I didn't know if that was allowed by the contract. I suggested he speak to the original agent and get them to reduce their fee or release him.

Views anyone?

MuttleyCAFC

I'm pretty ignorant about this and sure somebody would put me right but why don't you inform him that as it is a landlord's market you are going to move away from the agent route and advertise via the local paper. With a bit of luck he will apply via this route as will a few others so if he is the best applicant, can't see how agent can have any claim.

SuperCliveMendonca

As far as I know YOU are the client as you pay them the finders fee! However sorry not sure about changing agents, need to check your terms and conditions.

razil

its in their t's and c's

.. commissions are based on a percentage of the rent due
by the tenant throughout the term of the initial tenancy
and any subsequent renewal extension or holding over
of the tenancy or any continued tenancy of any Tenant
introduced by KFH.

Addicted

Seems like a bind then.

Only thing you might be able to do is have the tenancy run its course (say to the 24th). Officially its finished. Then create a new contract for a different tenancy starting as of the 26th. Technicality possibly, I dunno...

DRAddick

Edit....question already answered.

razil

http://landlordlaw.blogspot.com/2009/07/oft-victory-in-foxtons-unfair-contract.html

hmm

SuperCliveMendonca

Raz - where is your property ?

razil

seems to have equal prominence to the main fees, shocking really though

razil

East Greenwich, 1 bed garden flat

razil

http://www.greenwichgardenflat.org.uk

SuperCliveMendonca

Raz, speak to Leanne my agent in Blackheath, just spoke to her and she will help - good rates if you can get them :

Leanne Jeffery
Assistant Manager (Lettings)
Blackheath Village Lettings


tel: 020 8 318 0927
fax: 020 8 318 0925
e-mail: Leanne.Jeffery@fjlord.co.uk
web: http://www.fjlord.co.uk

Lincsaddick

my tenant wants to renew but I've told him I'm not going through the same agent again as they are too pricey and charge a lot to renew which means I lose money on the let, it barely breaks even on the best of times.

Anyway there is stuff about him being their client and they own him essentially so if he renews direct they want the cash. He asked if he could renew via my new agent who is going in to do some marketing stuff, I said I didn't know if that was allowed by the contract. I suggested he speak to the original agent and get them to reduce their fee or release him.

Views anyone?

Bear with this analogy. If you sign on with an employment agency and they send you for a job, they collect an hourly rate all the time you're there. You, as an 'employee' of the agency cannot then shop around for an agency which will pay you more and charge the client less per hour, as, the first agency in effect 'own' you for the duration of your time working for the client. Likewise, if an estate agency introduces a tenant to you, they 'own the tenant' for so long as he stays in your property, even at the end of the tenancy. If he or she comes again to live in any of your properties within a certain time, the agency still can claim a fee. It's really a matter of you reading the small print. That anyway is how I read it and most leasehold or shorthold tenancy agreements drawn up by estate/property managers/agents will contain clauses similar to those I have outlined.

LenGlover

http://www.greenwichgardenflat.org.uk

I like the fence :-)

LoOkOuT

Is there a fence on the property? If so, how high is it? That can make all the difference. ;-0

LoOkOuT

@LenGlover you got in there just before me!

TelMc32

http://www.greenwichgardenflat.org.uk

Raz...it's a disgrace!!! How come you don't have The Valley - the home of football - listed in the nearby entertainment section?? ;-)

razil

Tsk, attention to detail lads, this is actually the home of the 'original fence' quoted in ancient fence lore in the annals of CL

Stig

What sort of an ad is that? The entertainment section doesn't mention Charlton.

Saga Lout

I'm not an expert, but this is what happened with me. I wanted to change agents from KFH.

I paid them a "finder's fee" at the outset. I then paid them a management fee monthly. I wasn't happy with their service and met another agent who I felt could do a better job, so when the tenancy was coming to an end I GAVE KFH NOTICE. As I understand it, had I not done that, they would have a) continued to charge me the management fee beyond the end of the tenancy (assuming the tenants remained) and b) I think they would've tried to charge me another finder's fee for the same tenants (I may be wrong about that).

My situation now is that I have extracted myself from KFH completely and the tenants remain. My new agent is managing the property for me and I couldn't be happier with his service.

Note: I have not given my tenants a further agreement, as they have been quite poor at paying on time. They remain in the property as long as they are paying on a regular basis.

Saga Lout

I should add that it's not easy to shake off KFH - they didn't want to give me a closing statement on the basis that the tenants might still pay them the outstanding rent, but I insisted. They also charged me a fee for going to the house at the end of the tenancy to check the tenants had vacated, despite the fact that they 100% knew the tenants had no intention of leaving!

razil

agree re KFH uncoincedentally they are the agents in question

it actually pays me to have the place empty for 6 weeks rather than use them for renewal

razil

just wondering if I sublet this to the existing tenant via my wifes company, or even sublet it to the tenants company (he's a contractor) that would avoid the issue, legal view anyone?

suzisausage

We're selling our flat through KFH.

Anyone know if you can negotiate on fees after the sale if you're not happy with the service even if you've signed the agreement in advance to put your home on the market with them?

Seems to me, you sign up and pay whatever, even if you have reason to believe they haven't lived up to their promises?

suzisausage

btw, anyone want to buy a 1 bed flat in lee? not putting the link on here as @Curb_it will call it average!! :-)

Lincsaddick

just wondering if I sublet this to the existing tenant via my wifes company, or even sublet it to the tenants company (he's a contractor) that would avoid the issue, legal view anyone?

depends on the wording on the original contract you had with the estate agency

BlackForestReds

We're selling our flat through KFH.

Anyone know if you can negotiate on fees after the sale if you're not happy with the service even if you've signed the agreement in advance to put your home on the market with them?

Seems to me, you sign up and pay whatever, even if you have reason to believe they haven't lived up to their promises?

There are two ways to go about it - call the agency explain that you aren't happy with the service and while you are intend to settle up you feel that a reduction in payment would be in order to compensate you for the poor service.

Alternatively contact this organisation: http://www.tpos.co.uk/

Perhaps they can offer some more concrete advice?

Badger

Free legal advice on LBC Tonight from 9pm. Check the website for the tel # email address, really interesting programme and usually questions about properties and landlords,