Landlord and LA parting ways

[sidam]

Hello:

After a fiasco, our letting /management Agents have agreed to a complete and immediate severing of all ties between us (Landlords).

The head of lettings (a good guy with an incompetent staff) suggested that a new agent draws up a new agreement from end Jan which covers the deposit, and that we then all (including tenant) agree to terminate the current tenancy, including something in writing from the tenant agreeing to the transfer of her deposit. The new agreement should take into account the tenant’s current term. They would hand over the working funds held by them plus all other relevant information to the new agent.

We, however, would prefer not to enter into another agreement with an agency. Our tenant is first-class and wants to stay on when her tenancy runs out end of July (she will know in March if she still has a job!) and we want her to stay on, perhaps for two years. After that we might want to reoccupy the flat ourselves (we live abroad), or sell (maybe to her).

We are happy also to manage the flat ourselves – which I’ve effectively been doing already – and I now have an account with DPS. I would plan to draw up a contract myself (based on the one we have but eliminating all references to the LA and basically keeping the wording etc.);does this mean that we must re- negotiate the short hold now, or is it possible to extend the present tenancy under a new agreement until July when it can be renewed?
Many thanks!
Gayle

[jeffrey]

This often confuses L clients, but you must remember with whom you have a contractual relationship.

CONTRACT 1 involves you (as L) and T. It is the Tenancy Agreement (usually an AST).
CONTRACT 2 involves you (as principal) and your Letting Agent. It is the Agency Agreement.

These are entirely separate and independent contracts. Neither depends on the other's continuation. You can end either* whilst allowing the other to continue.

* but subject to complying with applicable rules in:
a. (CONTRACT 1) the AST's clauses and the Housing Act 1988; or
b. (CONTRACT 2) the Agency Agreement's clauses and general contract law.

[sidam]

Jeffery,
Very kind of you to reply and set me straight

[sidam]

Dear Jeffery,
Thank you for your very helpful reply which is much appreciated. The LA (a prominent company with name beginning with ‘S’) has agreed to end our Agency Agreement without conditions or ties (i.e. Agency Agreement's clauses!?); but perhaps I should make sure the three-way agreement reflects this...


Best wishes,
Gayle

[Mrs Jones]

I may be wrong here, but I think the point that Jeffrey is making is that the cessation of the agreement between you (L) and the Agent (LA) should have no effect upon the agreement (AST) between you (L) and Tenant (T).

Why do you need to have a new AST?

You don't say how the Tenant's deposit is currently protected but it can't be that complicated to simply transfer this responsibility to you, depending on how it was handled by LA.

[sidam]

The three way agreement was suggested by our LA as a means to end the tenancy, which I now understand is not necessary. Just for curiosity, why would our LA suggest something like this?
Best ( and thanks for solving my problem)
Gayle

[sidam]

Following the good advice provided by members and experts on this forum, I told the LA that we agreed to end our Agency agreement (with no three party agreement) ; and with the current AST unchanged . We met with absolutely no opposition. Thanks again. Gayle