We are renting an apartment, and our tenancy agreement is coming to an end soon. Our landlord wants to terminate the services of the agency responsible for maintaining his properties. We recently met with him, and he proposed that we enter into a direct tenancy agreement with him (the current one was created with agency). However, he is concerned that he may still have to pay fees to the agency because we will continue to live in the apartment. We are not sure if he has understood the terms correctly, as he does not reside in the UK. Does the agency have the right to demand fees from the landlord if we do not renew the current contract but simply enter into a new one without involving the agency and keep living in this apartment?
that depends what the contract with agency has written into it You may not know what that contract says
So, it sounds, if it’s in their contract, it’s legal. They suggested some ideas like to live a month or so without a contract at all. But for me it doesn’t sound like a good idea. Is there any advice for my landlord or if they want to have better options for themselfs they just need to try to negotiate it with agency?
you would not need to pay anything. but the landlord likely have to pay compensation to the agency > some of them have got it sewn up
Once the fixed term tenancy ends a new periodic tenancy on the same terms arises by law, so you are properly covered and dont need to worry. In fact, its better for both of you to let the existing tenancy go periodic and remain so.
Its likely that the landlord wont be able to get out of his contract with the agent without paying a large fee, but thats his problem, not yours.
If he lives abroad and will have no-one looking after his interests in the UK, then he’s very foolish, but I wouldnt worry about it unduly, things shouldnt change noticably for you.
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