Letting agency contract?

Letting agency contract?

10:58 AM, 20th September 2022, About 2 years ago 15

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Hi, Since 2004, I’ve rented out a property using a national letting agency.

They introduced the tenant, who is still there, and since 2004 they have charged me 8% just to collect the rent.

I want to continue with the same tenant but end the contract with the agency.

But there is a term in the contract stating that they can still charge me ongoing commission even if I end the contract – because they found the tenant in the first place.

Any advice on this clause?

I don’t want to give my tenant notice, and it seems so unfair that he should leave because of this contract term.

Thank you.

R


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Puzzler

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11:18 AM, 25th September 2022, About 2 years ago

Reply to the comment left by David Smith at 24/09/2022 - 17:10
The OP does not say it is a renewal fee so why do you assume it is? 8% commission is quite a good rate.

David Smith

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16:40 PM, 25th September 2022, About 2 years ago

Reply to the comment left by Puzzler at 25/09/2022 - 11:18
A good rate for initially but why pay any thing after that? Why would you?
And collect the rent your self. Against why wouldn’t you?

Puzzler

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16:17 PM, 26th September 2022, About 2 years ago

I do it because if there is an issue with payment then they deal with it and all the other legalities. If I had time I might do it myself. Also if there is an issue there is a buffer between me and the tenant. For me it is good value, others prefer to do it themselves.

The agreement is usually for the term of the tenancy so you have to decide at the outset what you want. That said my agent only has a notice period but I believe that is unusual.

David Smith

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16:48 PM, 26th September 2022, About 2 years ago

But the agents do not guarantee the rent if the tenant stops paying so I wonder if they would be any help in recovering unpaid rent.

Only except tenants that pass strict referencing and then if you want then take out an insurance policy against non payment of rent.

I still can’t see why you pay 8% every year.

Puzzler

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13:17 PM, 27th September 2022, About 2 years ago

They go through the motions in conjunction with the insurance. You're right it is wasted in some ways but I don't have time to chase rents.

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