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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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i GAVE AN ESTATE AGENT MY PROPERTY TO RENT WITH A FULL MANAGEMENT

Customer Question

i GAVE AN ESTATE AGENT MY PROPERTY TO RENT WITH A FULL MANAGEMENT AGREEMENT FOR 1 YEAR. i HAD TO PAY THEIR FULL MANAGEMENT FEE UPFRONT. THEY TOOK THIS OUT OF THE 1ST MONTH RENT. THE TENANCY HAS NOW RUN FOR 11 MONTHS, AND THE ESTATE AGENT WITHOUT ANY NOTICE HAS TAKEN ANOTHER £828.00 FOR MANAGEMENT FEE IN ADVANCE FOR ANOTHER YEAR. THERE WAS NO COMMUNICATION, NO LETTER NO EMAIL, NOTHING, THEY JUST DEDUCTED THE MONEY IN MONTH 11 AND PAID THE BALANCE IN TO MY ACCOUNT.. WHEN I QUERIED THIS I WAS TOLD THAT MY AGREEMENT STATES THAT I HAVE TO GIVE 2 MONTHS NOTICE BEFORE RENEWAL IF I DO NOT WANT TO CONTINUE FULL MANAGEMENT. OTHERWISE FULL MANAGEMENT FEE BECOMES PAYABLE. AGAIN THIS MONTH THEY HAVE TAKEN OUT ANOTHER £828.00 OUT OF THE RENT AND PASSED ON THE DIFFERENCE. WHEN I QUESTIONED THIS, I WAS TOLD THAT IT WAS A MISTAKE AND THE DIFFERENCE WOULD BE REFUNDED. REGARDLESS OF COUNTLESS EMAILS AND PROMISES FROM THE MD THAT THE MONEY HAS BEEN TRANSFERED, A WEEK LATER THE FUNDS HAVE STILL NOT BEEN RECEIVED. NO ONE IS ANSWERING THE PHONE IN THE OFFICE AND THE MD HAS TOLD ME BY EMAIL THAT HE IS OUT OF THE COUNTRY UNTIL 25TH MARCH. (ALL REPLIES FROM THE MD HAVE BEEN SENT FROM IS IPHONE) MY QUESTION, CAN I GO DIRECTLY TO THE TENANTS AND ASK THEM TO PAY THE RENT DIRECTLY INTO MY ACCOUNT FOR THE RENT GOING FORWARD. THERE IS NOTHING IN THE AGREEMENT THAT STATES THAT THE TENANTS CANNOT PAY ME DIRECTLY..

Submitted: 3 years ago.
Category: Law
Expert:  UK-Justice replied 3 years ago.
Thanks for your question, my name is Nic I will do whatever I can to help you today.

What does the contract say about termination and renewal fees?.

Has it been 12 months?
Customer: replied 3 years ago.

Hi Nic


 



The contract started on the 16th March 2012.. So 12 months is coming up. But they took the renewal fee last month in February..


 


The contract states under Renewals:


 


We will take our renewal fee on the 12th Month of the Contract, which will be 5% plus vat, this will be done without notice if our tenanat deceides to stay in the property for a further year. if the landlord wishes to cancel our contract he must give three months notice to Letsallmoce Management services and 2 months notice to our tenanat to vacate the property.


 


The contract states under Cancellation of Management Contract:


If both parties agree to cancel the contract between the Agent and the Landlord and if our tenant remains in the propert the landlord will still have to pay our renewal fee. The landlord must serve 3 months notice to the agent, to cancel the managing contract.


 


The Contract also says under Rent Receipt:


Once a tenant has been found for the property, if agreed, we arrange to receive the rent on your behalf and have the monies debited directly to your account.


 


Regards


Angela

Expert:  UK-Justice replied 3 years ago.
Ok and to be clear you did not cancel?
Customer: replied 3 years ago.


No.. I did not get a change to cancel..

Expert:  UK-Justice replied 3 years ago.
Thanks.

You are bound I am sorry to say.

You have a contract which you agreed and signed to.

You could have given notice to cancel as per the contract. You have not given notice.

This means you are bound by the contract.

The contract is clear you must give notice, if you did not give notice then you are bound,

I am very sorry if this is not the answer you are looking for but based on what you have said, this is the legal position.

If there you have any questions or if I can help you with anything else please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Customer: replied 3 years ago.


My question was can I lawfully ask the tenant to pay the rent directly into my bank account, rather than to the letting agent?? Does this request break any laws under my contract??


 


Can I give notice to the letting agent now,as they have already taken their management fee for the year in advance, which is what would be payable to them anyway?? Is that correct re my contract??


 


What can I do about the unpaid rent not paid this month? It is now over a week late??


 


These were the questions I asked in my initial communication..


 


Regards


Angela

Expert:  UK-Justice replied 3 years ago.
Can you - yes but you would still be liable for the agents fees.

You can give notice but this won't have effect until march 2014 as you need to give several months.

As for difference you should write and ask for repayment of the amount with 7 days or say you will go to court.

If they refuse then you can issue proceedings.

You can do this online at www,moneyclaim.gov.uk - you will have to pay a fee but this will be added to the claim.

You can also claim interest at 8% of the amount from the the it became due.

As this is below £5000 it will be a small claim and you won't need a solicitor.

You will be surprised how quick maters are resolved once proceedings are issued.

I hope this helps.


If there you have any questions or if I can help you with anything else please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Customer: replied 3 years ago.

Hi Nic.. Sorry, but your reply makes no sense.. As mentioned in my initial statement/question, the estate agents have already taken their management fee for the year in advance (in Feb) this fee is for March 2013 - March 2014.. So I dont understand your reply that says I would be liable for agents fees if I request the tenant tens pay me the rent directly.. Why would I have to pay more agents fees?? Please could you read my initial note and question again, as I think what I stated and asked is being lost


 


My second question was am I breaking any laws or terms of the contract by requesting the rent be paid to me directly rather than to the agent and then them passing it on to me..


I also was told that most 12 month contracts have a 6 month break clause, is this not the case.. Is that law??


Regards


Angela


 

Expert:  UK-Justice replied 3 years ago.
Yes I am saying liable for any fees

Clearly as you have paid in advance no other fees should be payable.

That is what I meant as is my fault if I did not make that clear.

No you are not breaking any law. But it may be breach of the contract so you need to check.

Nothing mentioned in contract means no breach.

A break clause is not law no, so you need to check and read the contract about this.

They are normally individually negotiated rather than standard, but it's not a legal requirement.

If there you have any questions or if I can help you with anything else please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Expert:  UK-Justice replied 3 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice

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