Problem with Letting Agent

Lister1

I rent out my apartment and was informed that the tenants would be vacating the property at the end of October at the end of their lease. I asked the Letting Agency to check with them whether they would be willing to renew for another year if I reduced the rent slightly. This would be an ideal solution for me as I wouldn't have the hassle of looking for a new tenant and would avoid any period when the property would be empty. The letting agency wrote back giving a reason for the tenants leaving the property and informed me that "there was nothing I could do to persuade them to extend their tenancy".

I thought nothing of it and have been saving up some money to enable me to return their deposit, flights back home to sort new tenants and manage the leaving of current ones and to cover the mortgage for the period between rental when the property would be empty.

About 2 months went by and my Dad got a call from the tenant asking would he take a look at the lock on the front door. My Dad has kept an eye on the property and has done a couple of odd jobs for me although I have asked the tenant to go through the letting agency for everything as this is what I am paying them for.

During this meeting my Dad discovered that the tenants had enquired via the letting agency about getting a reduction in the rent and were told that this could not be done. It turns out that they love the property and are wish to extend their stay but were finding meeting the payments a bit tough(I should note that they have paid rent in full and on time since they moved in).


It appears to me that they letting agency haven't been truthful and have told me a blatant lie in order to recoup a "finders fee" due to the need to locate a new tenant.

I have yet to approach the letting agent on this matter as I dont wish to limit my options on what action to take.

So my questions....

1. Is there any thing stopping me from cutting out the letting agent out and dealing with the tenant directly(the contract ends in October)?

2. If the above is possible and legit I assume there will be no need to return the tenants deposit when their current contracts end?

3. I assume I can draw up a new contract based on the current one which was drawn up by the letting agency?

4. What extra responsibilities will fall on my by cutting out the agent?

5. Is there anyone I should report the letting agent to if I am not happy with the reason/excuse they give me for stating that the tenant did not wish to extend their stay?

The_Conductor

Once your contract with the letting agent has been satisfied- there is nothing whatsoever to stop you from dropping them. You need to dig out your agreement with the letting agent- and go through it with a fine tooth comb- there is no point in getting caught out. Also nothing whatsoever to stop you offering the tenants a small reduction to stay.

Vis-a-vis rents- they probably have risen, if its Dublin- but the additional cost of finding new tenants- wouldn't be offset by giving these guys a small reduction- and you're happy with them anyway- so its a win-win all round.

You can check whether or not the letting agency are registered with the PSRA, and lodge a complaint (not sure how to do it- but the PSRA- who are the regulatory authority, would appear to be the right first port of call).

Best of good luck.

D3PO

as was said check your agreement with the letting agent and when your satisfied that everything is in order. Ring them and tell them everything you know and to go fu(k themselves.

Santa Cruz

Lister1 wrote: »

I rent out my apartment and was informed that the tenants would be vacating the property at the end of October at the end of their lease. I asked the Letting Agency to check with them whether they would be willing to renew for another year if I reduced the rent slightly. This would be an ideal solution for me as I wouldn't have the hassle of looking for a new tenant and would avoid any period when the property would be empty. The letting agency wrote back giving a reason for the tenants leaving the property and informed me that "there was nothing I could do to persuade them to extend their tenancy".

I thought nothing of it and have been saving up some money to enable me to return their deposit, flights back home to sort new tenants and manage the leaving of current ones and to cover the mortgage for the period between rental when the property would be empty.

About 2 months went by and my Dad got a call from the tenant asking would he take a look at the lock on the front door. My Dad has kept an eye on the property and has done a couple of odd jobs for me although I have asked the tenant to go through the letting agency for everything as this is what I am paying them for.

During this meeting my Dad discovered that the tenants had enquired via the letting agency about getting a reduction in the rent and were told that this could not be done. It turns out that they love the property and are wish to extend their stay but were finding meeting the payments a bit tough(I should note that they have paid rent in full and on time since they moved in).


It appears to me that they letting agency haven't been truthful and have told me a blatant lie in order to recoup a "finders fee" due to the need to locate a new tenant.

I have yet to approach the letting agent on this matter as I dont wish to limit my options on what action to take.

So my questions....

1. Is there any thing stopping me from cutting out the letting agent out and dealing with the tenant directly(the contract ends in October)?

2. If the above is possible and legit I assume there will be no need to return the tenants deposit when their current contracts end?

3. I assume I can draw up a new contract based on the current one which was drawn up by the letting agency?

4. What extra responsibilities will fall on my by cutting out the agent?

5. Is there anyone I should report the letting agent to if I am not happy with the reason/excuse they give me for stating that the tenant did not wish to extend their stay?

Once the lease is over there is nothing stopping you from doing this yourself. If your tenants are willing to stay on and you are happy to give them a rent reduction just get a new lease signed, register with PRTB and away you go. The fact that your father is around is good as he can act for any maintenance issue. The letting agents just want to get new tenants so that they can hit you for additional fees

ChRoMe

Lister1 wrote: »

I thought nothing of it and have been saving up some money to enable me to return their deposit,

A tenant's deposit is not there to supplement your cash flow......:mad:

The_Morrigan

ChRoMe wrote: »

A tenant's deposit is not there to supplement your cash flow......:mad:

Selective quoting does not an argument make..there is more to that sentence that required savings.

Op cut all ties with the agent, but ensure you cover yourself by reviewing any contracts you have in place with them.
Also, if you're not in the country the tenants have obligations with tax. I'm on my mobile at the minute and can't provide a link. I'll come back later if no other poster can step in before me.

Ken.

How are you getting paid right now. Tenant-agent-you or tenant-you. If its the first one you'll need to set up a bank account for them to start paying into from October.

D3PO

The_Morrigan wrote: »

Selective quoting does not an argument make..there is more to that sentence that required savings.

Op cut all ties with the agent, but ensure you cover yourself by reviewing any contracts you have in place with them.
Also, if you're not in the country the tenants have obligations with tax. I'm on my mobile at the minute and can't provide a link. I'll come back later if no other poster can step in before me.

No they don't have tax obligations. Hiring an agent removes the responsibility of the tenant to have to withhold rent for tax.

D3PO

Santa Cruz wrote: »

Once the lease is over there is nothing stopping you from doing this yourself. If your tenants are willing to stay on and you are happy to give them a rent reduction just get a new lease signed, register with PRTB and away you go. The fact that your father is around is good as he can act for any maintenance issue. The letting agents just want to get new tenants so that they can hit you for additional fees

The OP does not have to reregister with the PRTB that is totally incorrect information to give them.

runawaybishop

Should the OP not also be challenging the agent about their work practices? They seem pretty dishonest, surely they are failing in their contractual obligations.

D3PO

they should but there really is no recource in the world of EA's unfortunately. Id teach them a lesson on their bottom line leave and let everybody know who the agent is and what practice they engage in.

The_Morrigan

D3PO wrote: »

No they don't have tax obligations. Hiring an agent removes the responsibility of the tenant to have to withhold rent for tax.

But the OP wants to remove the agent from the equation.

D3PO

The_Morrigan wrote: »

But the OP wants to remove the agent from the equation.

you said the tenants have a tax obligation not that the tenants will have a tax obligation. Meaning they currently have one which they don't.

Re cutting out the agent its easy for the OP to assign their father as the agent to remove that issue.

ChRoMe

The_Morrigan wrote: »

Selective quoting does not an argument make..there is more to that sentence that required savings.

Op cut all ties with the agent, but ensure you cover yourself by reviewing any contracts you have in place with them.
Also, if you're not in the country the tenants have obligations with tax. I'm on my mobile at the minute and can't provide a link. I'll come back later if no other poster can step in before me.

Which makes no difference, he has obviously spent the deposit, which is what I take issue with.

the_syco

ChRoMe wrote: »

Which makes no difference, he has obviously spent the deposit, which is what I take issue with.

From reading the following bolded part;

Lister1 wrote: »

I thought nothing of it and have been saving up some money to enable me to return their deposit, flights back home to sort new tenants and manage the leaving of current ones and to cover the mortgage for the period between rental when the property would be empty.

I read it as returning the rent physically, probably after he checks the apartment for any damage.

ChRoMe

the_syco wrote: »

From reading the following bolded part;

I read it as returning the rent physically, probably after he checks the apartment for any damage.

You are completely missing the point, he has obviously already spent the deposit, which he should have not.

runawaybishop

ChRoMe wrote: »

You are completely missing the point, he has obviously already spent the deposit, which he should have not.

Maybe he has, maybe he hasn't. Its not the point of this thread.

The_Conductor

Ok- the OP shouldn't have used the deposit to aid his cashflow (regardless of what he needed it for). The fact of the matter is- until such time as there is an agency with whom deposits can be lodged- it is lodged with a landlord, and providing he or she is in a position to return the deposit, as and when it is supposed to be returned- what they do with it in the intervening period of time, is irrelevant.

With respect of the OP registering with the PRTB- providing the current tenancy is registered with them- which it should be- all the OP needs to do is update the information as required (and abide by re-registration as per the schedule).

OP- get a copy of your contract with the letting agency- as I said earlier- and make sure you don't give them any reason to come after you for more fees. Sure- they have acted in a despicable manner- and well done for catching them out- but you have to make sure you do everything above board.

With respect of registering to pay tax as you're non-resident- simply nominate your Dad as the agent and off you go. Note- this is not entirely as easy as it used be- you will need to comply with the 2011 legislation, and may require a Class C and/or Class D licence from the PSRA (details on their website). For the purposes of conformity (and given their backlog), proof of application is being accepted as proof of licence at present (but they have a backlog of over 4000 applications to work their way through- so its going to be a while).

S.

sunnysoutheast

The_Conductor wrote: »

With respect of registering to pay tax as you're non-resident- simply nominate your Dad as the agent and off you go. Note- this is not entirely as easy as it used be- you will need to comply with the 2011 legislation, and may require a Class C and/or Class D licence from the PSRA (details on their website). For the purposes of conformity (and given their backlog), proof of application is being accepted as proof of licence at present (but they have a backlog of over 4000 applications to work their way through- so its going to be a while).

S.

You can nominate a family member as the collection agent, no need for them to register with PSRA. Form here:

http://www.revenue.ie/en/tax/it/forms/tax-registration-collection-agents.pdf

Penguino

You can report the letting agent to the PSRA. A simple search of their website will tell you if the agent is licensed to carry out lettings

The PSRA will investigate and find against the agent if needs be.

Lister1

Thanks all for the responses.

I have checked the contract and there seem to be no clauses regarding retaining the tenant and ditching the letting agency. I will of course give them a chance to respond but it seems unlikely that I will keep them on.

Regarding the spending of the deposit in an ideal world I wouldn't have had to but it was my intention to return this in full assuming that they left the place in good nick.

The_Conductor

Penguino wrote: »

A simple search of their website will tell you if the agent is licensed to carry out lettings

Don't go by the excel spreadsheet on their website- its horribly out of date. You will only get into trouble if you put any credence whatsoever in it.