Letting Agents - Rent collection

[jenniferL]

I had my property rented through an agent and they were paid a commission for rent collection, not managing the property though. The AST that they drew up stated that after 12 months the rent would be increased. After the 12 month term, I agreed with the agent that the tenants could extend their tenancy. The agent then failed to increase the rent in line with the terms of the AST.

As I paid them to collect and manage rent collection I feel that it was their responsibility to raise the rent in line with the AST. The formula that this was to be calculated by was also in the AST.

Could anyone tell me who's responsibility it was ?

Many thanks

[Colincbayley]

If that was the agreement you have with the agent, then you would have a good case for taking them to court for breach of contract.

You should speak to the agent first and try and to agree a settlement.

[jenniferL]

I did and they said it was nothing to do with them and it was my responsibility as they never fully managed the property. Their paperwork also states that after a year they would reduce their commission. They never did this either, and said that they had worked hard for me over the last year (problem with tenants at end of tenancy) and it was only £100 (approx) and it would cost me £65 to go to the small claims court !!

[Colincbayley]

Then you need to make a choice. Is the £100 more important to you than the hassel of getting it!

Sounds to me that they have not stuck to their agreement, as such you would have a good case if it went to court, if you win, you can claim the court fee as well.
Is it worth it for a 100 quid !!

Sack the agent, and collect the rent yourself, it's not difficult.

[Poppy35]

can you confirm that exact wording in the agreement? as most AST have a clause in them regarding rent increases but its not normal for them to state " a rent increase will take place after the intial period of 12 months......." etc

[jenniferL]

Thanks for the advice, the £100 was just the commission not the rent so several hundred pounds in total.

In light of their attitude I think that I might just go to the small claims.

Someone else's point of view is appreciated. As I see it I paid them to collect the correct rent and they never. They know what they put into the AST that they use.

Thanks for your feedback.

[Colincbayley]

Just one more thing. You say the agent put this agreement within the AST?
Is it also within the terms and condiditons of your agency agreement?
i.e what have they agreed to do as far as rent collection is concerned?

[jenniferL]

Sorry did'nt want to cause confussion by post in two different forums.

'If this tenancy is extended, continued or run on as a periodic tenancy then the rent will increase each year from the first rent due date more than 364 days after the commencement of the term, by the amount stated for the annual increase in the index of retail prices (all items) as quoted for the month two months prior to the month of the renewal. The rent will not be reduced below the figure in 1.7.1 at any time'

[Paul_f]

In which case you have answered your own question - the tenant is bound to pay the increase but you have to calculate the amount of the increase first and to advise the tenant of the new amount. What's more it can be backdated.

[jenniferL]

My question really is, was it my responsibility to do this or the agents, as I paid them for the rent collection ?

Thanks

[jeffrey]

Just one more thing. You say the agent put this agreement within the AST?
Is it also within the terms and condiditons of your agency agreement?
i.e what have they agreed to do as far as rent collection is concerned?
Good point. L has two separate Agreements. They are:
a. with Agent; and
b. with T. Agency commission is nothing to do with this second one.

T has NO relationship (contractually) with Agent.

[Paul_f]

Probably your agent, but check your terms of business contract.