|
I have been most encouraged to find your website after much scanning of the internet to try and find an answer to my question. I also notice that you held a training course in Pinelands today that would probably have been beneficial for my husband and I to attend – Residential Rental Course. When is your next one in Cape Town?
Our situation is as follows. We are slowly trying to build up a portfolio of properties that we will manages ourselves, but as we had both been pretty busy with our current commitments – we had chosen to use rental agents until we had more time available ourselves. That time has now come and we have decided to begin by managing the smallest of our 3 residences. We have given notice to the rental agency, but have hit a roadblock. The present tenant was found by the rental agency and we paid a commission to them at the start of the lease. We then renewed the lease after a year – entering a 6 moth contract and once again paid commission to the agent. The agent has now informed us that we are not allowed to keep this tenant unless we continue to pay them commission on every renewal for the remainder of this tenants occupancy.
While we are not opposed to the idea of sourcing a new tenant, it seems unfair to the present tenant to be compelled to give her notice and not allow her to sign a new lease with us for another period of tenancy. Are we locked into this agreement with the rental agent for the remainder of this tenants occupancy?
The wording of our contract with the rental agent is as follows:
The commission payable by the LESSOR to the agent in respect of the Lease is THE FIRST MONTHS' RENTAL for a 1 year lease and HALF OF FIRST MONTHS' RENTAL FOR 6 months lease, if the Lessor decides to accept extensions on the existing lease, commission will be payable on this time extension as well. Once the Lessee pays the deposit the commission will become payable by the Lessor.
The rental agent had this to say:
I hope this clarifies what we have been referring to. Either T is given 2 months' notice to vacate your apartment because you want to find your own tenant (in which case nothing is due to us) or we draw up a Renewal Contract between you and T (for which the relevant fees are payable) as per signed contract.
We would greatly appreciate any insight you can give us. I have scanned your website but could not find this same dilemma anywhere.
Kind regards
~ Gayle ~
REPLY:
Dear Gayle
There is nothing in law that allows a rental agent to keep on claiming commission if you retain a tenant. I would call her bluff and tell her that her mandate has been fulfilled and you no longer need her. If the clause in the lease states so, it would be regarded as an unfair practice because the property belongs to you not to the agent.
The Estate Agency Affairs Board has a Code of Conduct to which all agents have to adhere, and they hate to know that a member of the public is being threatened. If required you can report the agent to this body.
Sincerely
Vivien Marks |
