Jump to content
House Price Crash Forum
Ron J

Letting Agent Has Just Ceased Trading

Recommended Posts

Hi All,

Advise needed please.

I have just been informed by mail that my letting agent has ceased trading, luckily the DD was due to go out on Monday the 28th so I have stopped this (very lucky as it was sent 2nd class)

No deposite was taken but we paid 2 months rent in advance, so effectively I think that means we could just leave on the 28th April if we wanted to as the contact has beened cancelled by the letting agent.

I have been sent the landlords details for setting up payments but am reluctant to do this as I think the previous Contract is now viod and therefore there is no contract in place?

Looking for advise on what to do, I am thinking this may be a good opportunity to set up a contract direct with the landlord and get a rent reduction as there wouldn't be any letting agent fees.

Thanks for your help

Share this post


Link to post
Share on other sites

what do YOU want?

do you want ot stay in the place your in?

do you like the landlord?

regardless of reduction of price are you happy to setup a contract direct with your landlord?

Share this post


Link to post
Share on other sites

what do YOU want?

do you want ot stay in the place your in?

do you like the landlord?

regardless of reduction of price are you happy to setup a contract direct with your landlord?

Before I make a decision on any of the above I would like to know if the contract is viod.

Share this post


Link to post
Share on other sites

Before I make a decision on any of the above I would like to know if the contract is viod.

I assume the contract is signed by you and the landlord? If so, I can't think how the letting agent going broke would invalidate it.

Share this post


Link to post
Share on other sites

I assume the contract is signed by you and the landlord? If so, I can't think how the letting agent going broke would invalidate it.

The Contract between you and Landlord has NOT become void. The letting agent could even have signed it with LL authority and it would not be void. The agent is the AGENT and the LL is the contractual party. You do not need to do anything except set up payment direct to LL of the agreed rent. If LL wants to renegotiate, then fine, but nothing need happen until any fixed term is over, or a notice ending at that point is properly served. Only then will the tenancy come to an end. If it continues past the fixed term, then it automatically becomes an assured shorthold periodic tenancy. That means you can give one months notice anytime, ending on the rent date AND LIKEWISE LL can give two months anytime. OK?

Share this post


Link to post
Share on other sites

The Contract between you and Landlord has NOT become void. The letting agent could even have signed it with LL authority and it would not be void. The agent is the AGENT and the LL is the contractual party. You do not need to do anything except set up payment direct to LL of the agreed rent. If LL wants to renegotiate, then fine, but nothing need happen until any fixed term is over, or a notice ending at that point is properly served. Only then will the tenancy come to an end. If it continues past the fixed term, then it automatically becomes an assured shorthold periodic tenancy. That means you can give one months notice anytime, ending on the rent date AND LIKEWISE LL can give two months anytime. OK?

That's great, thanks

Share this post


Link to post
Share on other sites

Hi All,

Advise needed please.

I have just been informed by mail that my letting agent has ceased trading, luckily the DD was due to go out on Monday the 28th so I have stopped this (very lucky as it was sent 2nd class)

No deposite was taken but we paid 2 months rent in advance, so effectively I think that means we could just leave on the 28th April if we wanted to as the contact has beened cancelled by the letting agent.

I have been sent the landlords details for setting up payments but am reluctant to do this as I think the previous Contract is now viod and therefore there is no contract in place?

Looking for advise on what to do, I am thinking this may be a good opportunity to set up a contract direct with the landlord and get a rent reduction as there wouldn't be any letting agent fees.

A part of the agency fees pays for "managing" the property. This will still have to be done whether the current agent doesn't does it or someone else does it.

Share this post


Link to post
Share on other sites

A part of the agency fees pays for "managing" the property.

I didn't think they were doing it for free, don't you mean part of the rent?

Share this post


Link to post
Share on other sites

A part of the agency fees pays for "managing" the property.

I didn't think they were doing it for free, don't you mean part of the rent?

Ultimately of course. A letting agent charges the landlord for managing the property. It is usually calculated as a percentage of the rent. In my area the percentage charged for full management ranges from 8% of gross rent to 12.5% of gross rent.

The agent collects the rent from you, deducts his charges (plus VAT) and then pays over the balance to the landlord. Where the agent ceases trading and is insolvent, probably what has happened here, the agent is liable to the landlord for paying over the rent you have paid. If he hasn't paid the landlord you are not liable.

On a practical note you may be able to negotiate with the landlord to get a reduction in your rent. After all he won't be paying a middleman to do not very much each month.

Share this post


Link to post
Share on other sites

I didn't think they were doing it for free, don't you mean part of the rent?

I meant what I said.

The PP referred to he LL being able to reduce the rent because he won't be paying "agency fees".

My point is that these "agency fees" actually pay for some ongoing work to be done, work that is stil needed and will still need to be paid for.

tim

Share this post


Link to post
Share on other sites

As others have said, you have a contract with the LL which may have been signed by the agents 'for and on behalf of" and your landlord had a contract with the LA. The two are disparate, your rent is still due and the contract is in force, you can speak to the landlord and see if he is willing to reduce the rent on the basis that you now no longer have a professional to go through for repairs etc but I recon he'll want something in return, you look after getting plumbers etc out and he pays-saving him the hassle. My betting would be the LL will simply find another agent to manage the property and you will find out in due course. Check the terms of your contract for the agents involvement, if its significant then you could possibly argue that you are not recieving the service for which you have paid but generally although drawn up by the agent almost all references will be to the landlord. So you phone the agent, they phone the LL he says go ahead and pays for work and the agent is just a gobetween.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.