Managing agents

[toltol]

Just under a year ago we took on some tenants found by a local estate agency. They sourced the tenants and as we're new to this, we signed them up for a full management service. The Managing Agents have provided poor/no real service throughout the tenancy. The original one year contract is about to come to an end so we thought we would take over the management of the tenanacy ourselves. We were informed today by the managing agents that we are 'not allowed' to dispense with their services as they consider the tenants to be 'theirs'. They have said we can reduce their fee percentage to their 'Introductory Rate' but we cannot terminate their service until the original tenants move out. We have checked the contract and this is not mentioned but neither is any notice period that we may give them. Any advice?

[Eve]

Ask them to produce written evidence of the "agreed" contract term they are relying on so that you can have it checked by your solicitor and see if they change their mind then.

If they are estate agents I'm guessing they are not faring well with the state of the property market at the moment so are possibly trying to get in every penny they can.

An interesting point would be so see if the tenant also paid any fee to them for their services as many agents do these days).

[Eve]

Another query, what does the contract say about the length, how does it say it's full performed (ie comes to an end) or is it written as if indefinite?

[toltol]

Thanks Jenna.

Our contract with the Agents says nothing at all about any notice period, so I guess its indefinite (Is that legal?). We assumed (perhaps wrongly) that it would last for the period of the tenancy. I do know that the tenants did not pay any money to the Agents for finding a property.

[bednobs]

could you give the tennant notice to quit, say on 1st september then re-let it to them from the 1st september? hen they are not their tennants anymore and you get to keep them.
Alternatively, have they provided their side of the contract? if their service has been poor, are they fulfilling their sde?

[Info Bank]

Bednobs advice would be the correct way to go in this situation.

However, You may need to give a period of notice to the agency as well as to the tennants.

[Info Bank]

Sorry Bednobs did state tis ....but oth parties need notice.

[toltol]

I agree with you both that sounds logical but the contract with the Agent does not give any indication of a notice period. Are we within our rights to decide on what is acceptable given that none exists?

[Barmaid]

I don't know the ins and outs of this, but it sounds to me like they are pulling a fast one. If it was a year long contract, presumably it comes to an end at the end of the year - particularly if no notice period given. Given that you can see no clause meaning they are tied into "their" tenants beyond the year sounds to me like you are on good ground in dispensing with their services. The tenancy contract is between YOU (landlord) and them (the tenant), all the agents have done is fine them and mange them. They are not "their" tenants since they rent the property from you. Personally I'd tell em to sod off and if they persist get a solicitor to them em to do likewise.