Rental Question (Agents)

theratman

theratman

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Hey guys, just looking for some input.

I've been struggling with my rental agent the last few months, things aren't getting done, rent not in on time, bills not being paid not getting etc.

So I've decided to move the properties to a bigger and more helpful agency while the tenants are still under lease.

Agent A (current) is claiming full commission for the tenants while refusing to hand over documents the new agent, Agent B needs.

There is no clause in the leases nor in the contract, that I or agent B are aware of, that make note of such. Agent A is claiming around 15k in comission for the remainder of the leases on the properties.

As I understand it he is entitled to commission while managing the properties but not there after.

Any legal eagles about to shine any light on this?

My next step is to speak to an attorney as I don't feel he should be paid a cent moving forward. A finders fee or something for the tenants I could live with.
 
theratman said:
Hey guys, just looking for some input.

I've been struggling with my rental agent the last few months, things aren't getting done, rent not in on time, bills not being paid not getting etc.

So I've decided to move the properties to a bigger and more helpful agency while the tenants are still under lease.

Agent A (current) is claiming full commission for the tenants while refusing to hand over documents the new agent, Agent B needs.

There is no clause in the leases nor in the contract, that I or agent B are aware of, that make note of such. Agent A is claiming around 15k in comission for the remainder of the leases on the properties.

As I understand it he is entitled to commission while managing the properties but not there after.

Any legal eagles about to shine any light on this?

My next step is to speak to an attorney as I don't feel he should be paid a cent moving forward. A finders fee or something for the tenants I could live with.
Click to expand...
What does the contract say? Is there a breach clause? Performance clause?
 
Generally speaking, and I haven't seen the whole contract, where the contract doesn't deal with an issue like breach for example, the common law principles surrounding that issue kick in.

From what I can see under Estate Agent it does stipulate that the brokerage is payable upon signature. When read with the paragraph above that in the lease, it stipulates that brokerage is "on all the rentals payable". I take it that you were paying brokerage to them monthly on each amount? If so, from the contract they would be entitled to the full amount.
 
As far as I know, you are liable for the commission for the total lease.
I worked in rentals many moons ago and this is how it was worked out then.

10% commission of total value of lease payable to the agent. If agent just found tenant and arranged lease, etc, then handed it over to the landlord, the full 10% comm was paid from first month's rent.

If agent carried on looking after the property on your behalf, then the 10% is payable monthly.
If things changed during the duration of the lease, like yours, the company was entitled to claim the balance in full from you.

I think your best bet would be to call the Estate Agents Board first.
 
Thanks guys. My biggest issue here is the guy claiming commission when he should be ashamed to even consider it after failing to provide any sort of service during the leased period.

For example I'd received few rental statements over the last while. Which I should be getting monthly, agent always had excuses. Which is why the properties were moved among

I'll give the estate agents board a call, thanks.

3 other estate agents (granted all weren't rental) that I've spoken to say they've never heard of continuing to pay commission.
 
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If you don't want to go the attorney route then I think you need to set your concerns out in a letter and list why you think he failed to perform his part of the contract. Then set out what you think would be fair when ending the contract. If he gets really difficult, take it to the estate agency board.
 
You can go to small claims court as well. R15k is the limit, so you don't need to spend on lawyers fees. Hope you kept record of the failings of the agent.
 
Follow up, commission was paid to him following legal advice, and to add insult to injury he's been delaying transferring the deposits back since November. Attorneys have started court proceedings against him and are going to report him to the EAB.
 
Estate agents are worse than car guards when it comes to managing leases.

They all want commission for "finding" you a tenant and then you must pay in perpetuity if the tenant renews the lease.

The market is so crap right now, I just tell them "take 5% once off of F off". They all cave immediately.
 
Check your contract for a performance clause, from the sounds of things, they are not performing the duties expected (but perhaps not listed in the contract either) of them. If you can find that THEY have breached the contract, then you may well be able to use it as leverage. IF not then you will have to pay (remember they take the commission on a monthly basis calculated on the terms of the lease unless you pay them a once-off commission on signing, which I doubt as this is a hefty expense which most owners would prefer to cushion versus the income over the lease period).
 
Darynv said:
Check your contract for a performance clause, from the sounds of things, they are not performing the duties expected (but perhaps not listed in the contract either) of them. If you can find that THEY have breached the contract, then you may well be able to use it as leverage. IF not then you will have to pay (remember they take the commission on a monthly basis calculated on the terms of the lease unless you pay them a once-off commission on signing, which I doubt as this is a hefty expense which most owners would prefer to cushion versus the income over the lease period).
Click to expand...
On legal advice we paid the commission, the problem is now getting the tenants deposits back. It's been 3 months of excuses so I handed it over to the lawyers.
 
theratman said:
Thanks guys. My biggest issue here is the guy claiming commission when he should be ashamed to even consider it after failing to provide any sort of service during the leased period.

For example I'd received few rental statements over the last while. Which I should be getting monthly, agent always had excuses. Which is why the properties were moved among

I'll give the estate agents board a call, thanks.

3 other estate agents (granted all weren't rental) that I've spoken to say they've never heard of continuing to pay commission.
Click to expand...
Is the agency Seeff or Remax?
 
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