Dilemma – Rent to Rent/Company Lease contract basics?

by Readers Question

15:01 PM, 22nd July 2020
About 4 months ago

Dilemma – Rent to Rent/Company Lease contract basics?

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Dilemma – Rent to Rent/Company Lease contract basics?

I am looking to possibly move to another Agent in regard to a Rent to Rent/Company Lease arrangement for one of my properties.

I’m not happy with the current company at all – dire call back response, never reply to emails etc among other things. They have conceded that I can have a new contract (?), but I’m more inclined to use this as a chance to get out of it completely.

I have never signed the current contract (neither has my father who’s property it is – I act as his agent since he retired) and neither has their representative (who has apparently since died), so no one has any written agreement as such, just a copy of a contract document with the specific property details on like property address etc

There is a tenant in the property and my father receives the rent each month so legally there is a ‘contract’ by default of a transaction?

As I am writing this, I guess I’m really wondering if this is a valid contract in the first place? If not then how do I give the Mgt company notice? What happens to the existing tenant? I guess she has a contract with the Mgt agent (though clearly I am not a party to this).

Is it better to give the Mgt company notice then they deal with giving the tenant notice?

In the contract it states ‘if you require the property to become empty for whatever reason, the full cost of the move will be borne by you and a min charge of £2,000 will become payable before any tenants are moved out. In the event of a formal demand to move the tenant out or to terminate the contract you agree to pay us any money that we have spent on your property in order to make it fit to let during any time of the contract. ‘

Reluctant


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Comments

Des Taylor Landlords Defence Ltd

10:01 AM, 23rd July 2020
About 4 months ago

This is complex and more commonplace than people realise. I have solved many of these and without fuller information, it is guesswork. Please feel free to let me have an initial look at it for you and assist you. Nook an initial assessment at http://www.landlordsdefence.co.uk/book and I will have a chat with you.

Depending on the agreements in place (physically or through correspondence) or otherwise will determine the actions.

Hope to help and report back on the solution for everyone.

Puzzler

10:12 AM, 25th July 2020
About 4 months ago

Unless you are unhappy with the tenant I would just wait for them to leave. If you're liable for maintenance how come it waits until the end of the contract, this may be an unfair term. There must be a notice period or term?

Robert Mellors

22:07 PM, 26th July 2020
About 4 months ago

Does your father receive the rent direct from the tenant (occupier), or from the company?
What sort of legal agreement (albeit unsigned) exists between your father and the company? Is it a company lease agreement, and if so how long for?
If it is not a lease agreement, then what is it? Is it perhaps a letting and management agreement, i.e. the company is acting as a letting agent?
Is the "agent"? or "management company"? or rent to rent leaseholder company? regulated by any organisation, e.g. ARLA or Property Redress Ombudsman?
Who has issued the AST to the tenant occupier? When does the fixed term end?
Do you actually want the tenant occupier to move out?, or are you just wanting to get rid of the letting agent/management company/rent to rent company?

So many variables, and unanswered questions, that it is impossible to give accurate advice.

I would suggest that you really need to get copies of all agreements, and study them very carefully (terms and conditions), and then seek proper legal advice.


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