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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 71132
Experience:  Over 5 years in practice
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I am a landlord who has arranged a tenancy through an estate

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I am a landlord who has arranged a tenancy through an estate agent. My tenant now wishes to renew their contract, but the estate agent is insisting that they want to claim 5% of the years contract. Is there any legal way to circumvent the estate agent and keep my tenant? I plan on sorting out the contracts myself in order to do this. What are my options?

I would like to provide a copy of the agreement I signed with the estate agent for your opinion - would it be possible to do this?
Did you agree that they could claim for roll overs?
Customer: replied 5 years ago.


In the terms and conditions, a document which was signed by myself, the following is stated:


Actively persuading the tenants to stay and actively negotiate the best terms for you.
Should the tenants, their family, friends or associates renew the lease on the property, either by the creation of a new tenancy or
simply verbally by a periodic tenancy our fee will be 5% plus vat and for each subsequent year's renewal. We always play an
"Active Role" in persuading the tenant(s) to stay and negotiating rent levels (we actively push for a rent increase), organizing
change of tenancy by collecting and checking references, organizing new contracts where applicable, rental increases on
periodic tenancies will be dealt with under Section 13 Notice. Further more if the tenant leaves during the next renewal period
we refund to you 100% of the outstanding renewal fee (e.g. 12 months renewal and the tenant leaves after 4 months = 8 months
refund). All renewal fees are discounted at 20% of our letting fee."

Have they negotiated the terms or persuaded the tenant to stay?
Customer: replied 5 years ago.

Not yet - they have contacted the tenant to assess their interest in renewing the contract.


They are awaiting our approval before entering negotiation.


We are in communication with the tenants directly. And they are amenable to engage with us in this manner.


I would stress that this estate agent has merely introduced the tenant to us and has provided no property management services since the first tenancy agreement was drawn up 50 weeks ago.

Under the contract they are entitled to their 5% only if they play an active role in renegotiating.

I suppose that under the contract there is no definition of ‘active role’. They will argue that making contact with the tenant amounts to an ‘active role’ and, in fairness, it is an action that they wouldn’t have taken if they had no contractual interest in this matter. They will certainly say that this amounts to ‘actively persuading the tenants’ to remain.

You can always refuse to pay and invite them to sue. Maybe they will, maybe not. If they do then you can defend on the basis that this does not amount to the demands under the contract.

Overall, clearly they have taken action but if you can show that it was not their actions that led to the renewal of the tenant then probably there is a challenge.

Hope this helps. Please remember to rate my answer either OK SERVICE or above and then I will give you related information for free.
Jo C. and other Law Specialists are ready to help you
Customer: replied 5 years ago.

Thanks for your expeditious reply. It was very helpful. Would you be able to pass on any related information to me?


Many thanks.

Yes, what else did you want to know?
Customer: replied 5 years ago.

Sorry - I had presumed from your previous statement: "...I will give you related information for free..." implied that you had specific information in mind.


My thanks for your help.


Kind regards,



I see. No problem. Come back if you want to know anything else