Estate agency chasing me for fees

[snomys]

As a landlord, just a small 1 bed property, my home, whilst overseas I decided to rent it with a well known high street agency. The tenancy was set up as a 2 year fixed and that was completed back in mid April 2024. Because the agency had been extremely poor, I decided to move my property to a new agency, and I gave my original agency 3 months written notice that I would like to terminate with them at the end of the 2 year term. I got confirmation of this having been accepted by email from them. My sitting tenant wanted to remain, and I told them the local agency I had relisted the property with, which he went and asked to start a new agreement. To me, this seemed to be a non troublesome opportunity, I know the tenant, and for both of us it would seem to be a suitable proposition to go forward together, as he was also very unhappy with the original agency of not replying to emails and issues. I looked through my agreement with the original agency and in the terms there is nothing indicating that I would be in any trouble, but I am not a lawyer. Today I received an email from the original agency stating that because the tenant is still at the property I am liable to pay the full years commission, about 2000.00 in total. I cannot believe this, because even my new agency had informed me there shouldn't be any issues with this arrangement because I had given instruction to terminate, and they also had all of the terms and conditions as I handed them over to them, because obviously I was a little hesitant concerned of any issues arising. Can anyone give me any advice and help?

[atticus]

You are going to have to read the full terms of your contract with this agency. Look carefully at all the circumstances entitling them to charge a commission.

[snomys]

This is what it states:
1.2 Renewal Commission
1.2.1 X will endeavour to contact both the landlord and tenant before the end of the Initial Agreement to negotiate an extension of the tenancy, if so required. 1.2.2 In the event that the tenant renews, extends, holds-over and/or enters into a new agreement for which rental income is received, commission becomes payable to X ("Renewal Commission"), subject to the cap set out in clause
1.2.3 below.
1.2.3 You will not be liable for Renewal Commissions relating to any period beyond the end of the second year from the expiry of the Initial Agreement.
1.2.4 The Renewal Commission fee is due and payable on the commencement of each Renewal taking place within two years from the expiry of the Initial Agreement.
1.2.5 Where a Renewal is for an agreed fixed term, the Renewal Commission fee is charged as a percentage of the total rental value of that agreed fixed term, subject to the limit under clause 1.2.3 where applicable.
1.2.6 Where there is no agreed fixed term for a Renewal, the Renewal Commission fee is charged as a percentage of the total rental value as if the Renewal would be for the same duration as the Initial Agreement, subject to the limit in clause 1.2.3 if applicable. See also clause 1.2.8 and 1.2.9 in respect of rebates once the tenant vacates the property.
1.2.7 The scale of Renewal Commission fees charged is as set out on page 2.
1.2.8 If the tenant terminates the tenancy by serving a valid notice to quit or by exercising a break clause prior to the end of the period for which Renewal Commission has been paid in accordance with clauses 1.2.4 to 1.2.6 above, X will refund the commission for the remaining period. The commission will be refunded within 14 days of the tenant vacating the property.
1.2.9 Where the tenancy is surrendered prior to the end of a renewed period/ term you will not be entitled to any refund from X. If the tenant asks to surrender the tenancy, X will seek your agreement and where you agree, seek to recover on your behalf from the tenant an amount equal to the commission incurred by you for the unexpired portion of the tenancy as a condition of your agreement to the surrender. X does not guarantee the recovery of these funds.
1.2.10 Renewal Commission will be due in respect of Renewals where the original tenant remains in occupation. Where there is more than one tenant, Renewal Commission will be payable in full where any or all of them remain in occupation.
1.2.11 Renewal Commission will be due whether or not the renewal, extension, hold-over or new agreement with the tenant is negotiated by X.
1.2.12 Renewal Commission remains payable if the tenant assigns the tenancy during the Renewal, whether or not the assignee is introduced by X. 1.2.13 Liability for Renewal Commission will come to an end once the property has been sold.

Have changed the company name to X

[atticus]

Well, as you will have realised that seems to cover the agency's justification for making that charge. This is subject to checking the calculation of the charge.

You might try taking this to The Property Ombudsman.

[snomys]

Well, as you will have realised that seems to cover the agency's justification for making that charge. This is subject to checking the calculation of the charge.

You might try taking this to The Property Ombudsman.

I assume its the part in 1.2.1 "extends, holds-over and/or enters into a new agreement for which rental income is received" but please bear in mind I had already given notice in January to terminate the contract with X at the end of the 2 year period, in April.

Enters into a new agreement, is both inside and outside of the contract and with any agency? This is very vague for someone like me with zero law experience, but you are saying that is/will certainly the case?

I appreciate your help, I have already written to the agency about whom to address a complaint to, because that is needed before proceeding to the property ombudsman.

[atticus]

1.2.10 and 1.2.11 also appear to apply.to the situation you have described.