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peterdo
15-05-2007, 19:23 PM
I have had a tenant in my property for the last 5 months, not had any problems, all seems relatively good.

I am getting hammered for 15% management fee and I am looking to deal directly with the tenant going forward, as she has indicated that she wishes to stay for the forseeable future and would be happy to avoid the extra fees charged by the letting agent also. I have managed to get the agent to release me from a clause that locked me in while the introduced tenant was in the property.

Basically:
1. Will a new tenancy agreement (stripping out references to the agent) be required?
2. If so, will the new agreement be classed as an extension or a new 6 month AST?
3. Does the agent automatically refund the deposit to the tenant or can I request a transfer to myself and ultimately the TDS?

I will be arranging the necessary insurance for rent guarantee etc and so far the tenant seems to be keen (especially since rent isnt going up as I will be saving a fair sum on management fees)

Many thanks in advance.

Peter

P.Pilcher
15-05-2007, 21:58 PM
The current AST can remain. Make sure you have the copy of it signed by your tenant this way the new deposit regulations will not apply! The agreement will merely become statutory periodic i.e. the terms and conditions remain the same when the original fixed term expires but now the tenant can give you one months notice if she wants to leave, and if you want her out, you must give at least two months notice. You can also alter the rent using section 13. You should request the agent to forward the tenant's deposit to you which, if he is holding the deposit as a stakeholder, you will require the tenant's permission to obtain. Your tenant should be notified of the new arrangements in writing and if the tenant insists that the agent continues to hold her deposit as stakeholder, then she can pay the agent's fee for doing this!

P.P.

peterdo
17-05-2007, 06:29 AM
Cheers Pilcher, nice and easy.......and a £110 per month saving!!

Peter

Bel
17-05-2007, 12:37 PM
Perhaps you'd like to share your technique for getting released from your agreement. I'm sure many posters are green with envy!

peterdo
17-05-2007, 16:49 PM
Hi Bel,

Pure opportunism!!

Letting Agent had sent an e-mail to the tenant and copied me in, unfortunately, they had also provided all of the previous correspondence between the tenant and the agentincluding...........card details for the deposit including 3 digit codes etc etc

They breached my tenants data protection rights, that had in effect broken the terms of the agreement and therefore all contractual obligations were nullified!

Only did it because they were being very difficult about a number of things including rental increase, renewal fees and documentation, but the straw that broke the camels back was the Rental Guarantee Insurance, they were charging me VAT as a service as opposed to IPT, at no point had they told me this was not an insurance product, but a bonded scheme and refused to back down.

I felt a bit bad about nailing whoever had made the mistake but at the end of the day my losses on the property have been eradicated by the increase as there will be no agents fees anymore!!

What annoyed me was that they had an indefinite clause, I was quite happy to pay 2-3 months mgt charge to release me from the clause, but they wouldnt budge..........they left me with no option but to play the trump card!! :D

All the best

Pete