Is private renting after contract ends illegal?

Question

Dear BiggerPockets users,

I have a real issue here because my current agent was not as ideal as I first thought they would be - they have such high commissions, makes so much problems/mistakes, additional charges and so late in getting things done etc.

The contracts with my tenants will end in April, they are lovely tenants and do hope they continue to rent.

My question here is, is it illegal or will I be in trouble IF we detach ourselves from the agents and I just go on to rent the house to them privately.

I do apologise if my terms I used are incorrect or hard to understand, if so please ask any questions. I'm new to the estate market and am trying to seek some advise =]

thanks in advance!:)

BoN

p.s: sorry if this is in the wrong section, am new to the forum :o

Jon Holdman · Answer

Start by just reading the contract you have with this management company.  You can probably fire them at any time.  In most areas you can manage your own rentals yourself, so you can certainly continue renting to the same or another tenant after you get rid of these guys.

Jim Wineinger · Answer

I will bet that MikeOH will notice this question and be able to help.

But if any contract is over, it is over, and you should be able to enter into any kind of contract that you wish from there.

I would think that you are talking about a management company for this rental?

If not, what kind of agent are you speaking of?

I would take your contract (whatever kind it is) to an attorney and ask for his advice. Some contract have automatic renewal clauses. It all really depends on just what the contract says.

Jim Wineinger · Answer

I do believe that since you (as landlord) hired the management company you may also fire them at any time, even before the end of the contract. But doing so you may trigger a clause about breaking the contract. Just like your tennants can move out before the end of their contract (if they have one) but are usually held to at least a fee for doing so and may also loose any deposit monies you required them to put down.

This is why I suggest that you consult an RE attorney in your area familiar with the RE laws and contract laws in your state.

Brenda On · Answer

Hi there,

thanks for the fast response.
Yes, I am currently with a management company who's in charge of the whole rental process and takes a commission and charge other fees.

So, I guess my next move should be to check the terms and conditions on the contract.

We (the tenants & I) are all not happy with the agents, thats why we just mentioned about whether or not they would like to continue renting but just cut out the middle-man, in this case the management company.

thanks in advance again for any other opinions and advises =]

BoN