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Estate Agents + BTL

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    Estate Agents + BTL

    So I have a BTL property. The same tennants have been in there for 2 years, and are coming up for a 3rd renewal. The agents are demanding their 10%+VAT up front again if the tennants renew despite doing absolutely nothing after finding the tennants in the 1st place.

    The contract stipulates that if the current tennants stay in place, or return to the property within 18 months, then I will have to pay the agents fees again.

    Is there anything to stop me renting the property to MyCo and then subletting to the tennants? 10%+VAT is obviously nearly 2 months rent!
    And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

    #2
    Don't know, but no one likes to see an agent suffer.

    Comment


      #3
      Originally posted by b0redom View Post
      So I have a BTL property. The same tennants have been in there for 2 years, and are coming up for a 3rd renewal. The agents are demanding their 10%+VAT up front again if the tennants renew despite doing absolutely nothing after finding the tennants in the 1st place.

      The contract stipulates that if the current tennants stay in place, or return to the property within 18 months, then I will have to pay the agents fees again.

      Is there anything to stop me renting the property to MyCo and then subletting to the tennants? 10%+VAT is obviously nearly 2 months rent!
      Are they managing the property?

      If it's just a recurring finders fee, tell them to ram it and cease all contact with them.
      ‎"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."

      Comment


        #4
        No, they've not managed it. I'm just not sure of enforcable the contract is.
        And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

        Comment


          #5
          Originally posted by b0redom View Post
          . I'm just not sure of enforcable the contract is.
          Yoda! Is that you?

          Comment


            #6
            Originally posted by b0redom View Post
            No, they've not managed it. I'm just not sure of enforcable the contract is.
            Is the tennants' letting contract between you and them, or between them and the agency?

            If the agency is not actively managing the property, I'd tell them to sod off.

            You've come right out the other side of the forest of irony and ended up in the desert of wrong.

            Comment


              #7
              Case with TV presenter (Huq)

              So far it's not clear, as there is a High Court case pending. I don't know how good your agent is, however what makes you think that the so-far-good-and-prompt-paying tenants will continue being so when they know they have to deal with yourself? Some people need to be 'reminded' or 'prodded' to pay. Same as going direct with a client, you can get more but also can wait for up to 3 months for payment, as opposed to agency paying you weekly/monthly. Could be time-consuming and stressful. Why don't you offer the letting agency 5% instead of 10% commission and settle half-way at 7.5%? This is asuming it's inclusive of collecting the rent and paying you.

              Comment


                #8
                (see below)

                You've come right out the other side of the forest of irony and ended up in the desert of wrong.

                Comment


                  #9
                  Originally posted by Dow Jones View Post
                  Same as going direct with a client, you can get more but also can wait for up to 3 months for payment
                  Not if payment terms are stipulated in the contract, which they certainly should be, with late payment interest penalties of x% over base rate.

                  Standard B2B contract stuff.

                  You've come right out the other side of the forest of irony and ended up in the desert of wrong.

                  Comment


                    #10
                    It's a corporate let. I get on well with the tennants, and they've been fine. I don't really think there's a worry about them not paying. The agent doesn't even collect the rent, it comes straight from the company to me.

                    I guess I'm just looking for the ability to go direct like I could as a contractor/client.
                    And the lord said unto John; "come forth and receive eternal life." But John came fifth and won a toaster.

                    Comment

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