Formal agreement between landlords and agents

Nico Serafino 27.07.2022

If I use the services of a property management agency for rental and management of my property portfolio and they fail to pay the money onto me is this grounds to end our agency agreement? 


A property management contract or agency agreement is a formal agreement between landlords and agents, which lays out the terms and conditions of how a rental property is to be managed and rented out. Common law defines agency as a relationship between a principal and an agent who is the person that has the power to create, change or terminate the legal relations of the former. 


These agreements are governed by the body of common law on agency and by the contractual document, if any, that created the agency relationship.


Issues between property managers as agents and their landlord principals can arise for a number of reasons. Sometimes there are disagreements over the agents choice of tenants whereas often times arguments can arise as a result of a disagreement over fees charged by the agents for the services they have provided. 


Disputes such as the above will often require a detailed perusal of the contractual document creating the relationship to determine whether there are any express clauses that may help clarify the parties respective positions. 


What happens if the agents withhold rental monies due?

Disagreements over payments owed for the services provided by the property management agents can sometimes arise. This may lead to the agents withholding the rental money landlords are owed until payment of their services has been made 


Whilst this may seem to be a quick and efficient resolution it may be a breach of the agency contract which may entitle the landlord to terminate the agreement. 


Whether you are a property manager or a landlord, payments owed to the other party should always be made in a timely manner and in full. Any issues arising out of monies owed should be referred to a legal adviser who may analyse the agreement and if necessary, issue a debt claim in the county court. 


At Sterling Law we are able to assist both Landlord and property management agencies with disputes relating to management of property portfolios.


Our Solicitors at Sterling Law are able to assist with all stages of Formal agreement between landlords and agents.



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