Tenant leaves with 3 years left but 4 years commission paid to agent?

Tenant leaves with 3 years left but 4 years commission paid to agent?

10:05 AM, 25th March 2020, About 5 years ago 14

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I’ve absolutely no idea what I’m to do with this – I let a flat last year (13 months ago) on a 4 year let to a company with a personal guarantee. The rent was paid for a year minus the commission (via the agent) the commission was fully paid (4 years’ worth and I did argue but told that this was their policy etc) after 12 months and I had one month full rent before the company stopped trading – this was nothing to do with the Virus crisis, but this is the excuse used now as the waters are very muddy with the agent as they are lumping this in with tenants walking away and handing back keys due to lost jobs and students returning home. This is not the case with me.

It’s quite an awkward situation in itself as the Guarantor is now saying he had no idea he was a Guarantor (signed contract) so is saying that the contract is null and void and he wants his deposit back – I doubt there is any point in chasing him – the flat is empty, good condition and he’s happy to hand back, but my issue is with the agency who have 3 years commission and I have no rent/tenant. The contract with the agents does state that if I break the contract or enact a break clause then commission is non returnable, but nothing about a tenant breaking the contract – any advise for me on this please. I am not taking it back, I am being given it back if that makes any difference.

The response from the agent is to give a 3 months rent holiday and then go for the directors/Guarantor if no further rent: Go for the directors anyway or take it back and be liable for all empty costs/council tax – they are not mentioning my request for return of commission

Many thanks

Harlequin Garden


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Harlequin

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17:06 PM, 28th March 2020, About 5 years ago

The contract does say that they collect the commission upfront but the only reference to returning a percentage of it is that it is not returned if I enact any break clause.

I am about to agree to the contract being surrendered and intend to chase the commission as the tenant/company is about to go into liquidation. I just need to check that surrendering doesn't mean that I've enacted a break clause, there have been so many weasel words with this issue that I need to be careful. I'd like this one behind me as I know there are more to come.

Harlequin

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17:08 PM, 28th March 2020, About 5 years ago

Reply to the comment left by Nettie Osborne at 26/03/2020 - 19:56
Thanks, more good advice!

Harlequin

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23:28 PM, 7th November 2023, About A year ago

Reply to the comment left by Harlequin at 28/03/2020 - 17:08
Just revisited this one whilst looking for a post on agents charging commission after the first year - and thought I'd update.
I took the case to the ombudsman - she found against me with reasons that were completely backwards (such as there was a personal guarantor, so I should have gone to him as he'd been referenced - if she'd read my case she'd have seen that he wasn't and plenty of other mistakes like that) - she gave me the policy and the case law which pointed to me being in the right - so I reworded it and sent it back to her and she then found for me and the agent had to repay my commission. The ombudsman also stated in her findings that as I was clearly an experienced landlord I should have known what I was signing, (charming) which was rather a sweeping comment - anyway, I got my money back but could have given up at the first fence. The ombudsman did 'forget' to send the findings to the agent so my money did not come for months, until I chased so I'm not very impressed with them, but they did the job in the end with a bit of pushing and writing the letter for them.

DPT

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12:38 PM, 8th November 2023, About A year ago

Rent to rent arrangements are often a disaster for the landlord. Learn the lesson and never do it again.

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