Agency demand for new contract with non-rent paying tenant

by Readers Question

18:38 PM, 15th October 2014
About 4 years ago

Agency demand for new contract with non-rent paying tenant

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Agency demand for new contract with non-rent paying tenant

We bought a newly built flat in October 2012 and rented it from November 2012. Problems with the drainage appeared immediately.  Agency demand for new contract with non-rent paying tenant

The tenant decided to stop paying the rent in February of this year because of a sewage smell in the flat. Since this is a new build, the problem is covered by the developer’s 1st year guarantee. After 9 months’ not paying the rent but the developer compensating us, the letting agreement 2013-14 with the agency will lapse in 2 weeks’ time. The agency is insisting that we pay the management fee (full 10% of the yearly rental) or evict the tenant.

Since no rent is being paid, we wish to continue with the present arrangement, receiving compensation since the compensation would stop if the tenant left and we couldn’t rent to anybody else. The agency insists that a new contract be signed but we cannot sign the contract with someone who is paying no rent. Not only did the agency do nothing about non-payment of rent, they didn’t even ask us if we wished to renew before today.

Is it ok to leave things as they are?

There is no solution on offer to the sewage odour.

Regards

B Morris-Graignic



Comments

Mark Alexander

18:43 PM, 15th October 2014
About 4 years ago

I'd be telling the agent to stick his contract where the sun doesn't shine!

If your agent takes this matter to Court the he would not have a leg to stand on I suspect. I'd need to see the contract first but I seriously doubt he will have an enforceable clause which covers this.

No agent can force you to start a new tenancy, the existing tenancy can go onto statutory periodic terms, i.e. month to month until terminated.

If the agent is genuinely managing the property then I do have some sympathy for him wanting to be paid. By the sounds of it though, your agent has done nothing.
.

Rob

19:20 PM, 15th October 2014
About 4 years ago

Surely if the tenants leave the developer still has to continue with the compensation because the flat is un rentable so you will have a loss of rent claim against the developer? Why hasnt the developer fixed it yet?

Joe Bloggs

9:12 AM, 16th October 2014
About 4 years ago

i had same prob in a barrets dev. i discovered they never put the caps on the soil stack rodding eyes. easily solved.

Neil Woodhead

9:59 AM, 16th October 2014
About 4 years ago

You would need to check your contract....many include a clause Agent is entitled to a fee if Landlord takes rent as a benefit in kind or receives income from any other source. In this instance if the Agent is still managing the property he is entitled to his fee and in my opinion is not chasing the rent because he is fully aware that you are receiving direct compensation. I am also sure that the Tenant is also fully aware of the situation.

I agree the Agent has no right to end tenancy without your consent and it looks like he just wants your property off his books because he is not getting paid.

Mark Alexander

10:14 AM, 16th October 2014
About 4 years ago

Reply to the comment left by "Neil Woodhead" at "16/10/2014 - 09:59":

The agent can end his contract with the landlord, that's completely fair. HOWEVER, he definitely can't terminate the tenancy without the landlords consent.
.

Steve Masters

11:02 AM, 16th October 2014
About 4 years ago

The agency fee will be 10% of the rent chargeable. You are still charging rent, the tenant is not paying but running up arrears, you are choosing to waive the arrears. This does not concern the agent, he can renew if he chooses to.

Sounds like you have an issue with the level of service you are receiving for your 10% though.

Leave the tenant in place and let the agent walk away, you are then free to find a better management solution.

I hope the drains get sorted out eventually.


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