Going it alone but keeping tennats from agency?

[dp1976]

Hi,

We currently rent our property through an agency. When the current tennants contract expires we already decided to go it alone and not use an agency anymore. However the agency has just said that the tennant wants to extend at the end of the contract for 12 months.

If we confirm to the agency that we no longer wish to rent the property at the end of the contract with them and we contact the tennant directly and say for a reduced rent as an incentive, ask them if they would consider staying with us?

Would i be allowed to do this? or is there likely to be some sort of penalty for either of us? - just unsure what the agency could do to us or the tennant if we went down this route.

Ta

Dave

[Melboy]

You need to read the terms of your written and signed contract between yourself and the LA.

Your LA cannot make another 'finders' charge/fee for the next 12 Months of contract however they can and would take their monthly management charge from the rental incme.

Mel.

[Lyndon]

Hi Dave

This is one of the biggest bones of contention between landords and agents.

IF your tenants want a new tenancy agreement and the agent draws this up then they are entitled to be paid. After all, who works for free?

However if you and they do NOTHING at all then the tenancy becomes a Statutory Periodic Tenancy and roll on on the basis of the original tenancy. In this case no work is done by the agent and no fee should be payable. This is the nub of the Foxtons case.

Mel is correct in that you need to check your agreement with the agent. I am presuming that they manage the property and deduct their fees monthly. They may have a notice period requirement from you which they are entitled to be paid for. I always suggest that landlords need to treat agents' management fees as insurance. It is a pain paying for it but, when the 'phone rings at 3am, you are SO glad you have it!

[Chestnut]

To answer the question.....I would have thought 'yes'.

1) Write to tenant explaining what you intend to do and that you wish them to stay.

2) Give the tenant due notice through the agency and close the existing agreement.

3) Settle the agents dues according to your contract with agent (make sure you've read it first!).

4) Negotiate and complete a new tenancy agreement directly with tenant.

Ensure that you take lots of advice and know what you're doing, e.g. DPS, EPC, etc. etc. Find a good draft agreement and check that it meets your needs for your property before you sign it up.

Otherwise use an agent!