Obligations to a Real Estate Agent When Extending or Renewing a Lease Agreement
My question involves landlord-tenant law in the State of: Michigan
I own a property in the state of Michigan that I rented out to tenants last year starting in July 2013. The lease is now up and they want to sign another year lease going into 2015.
Last year I went through a real estate agent who initially found my renters. At the time they did all the leg work, marketing, screening applicants, showing the house etc. For her services we were charged a month’s rent which was then split between the renter’s agent and my agent.
My hang-up here really is that my agent said she could re-issue the initial contract, set new dates etc. and have both parties sign again but she would then charge me another month’s rent to do this, which is $1700! I figure the work has been done already. She's literally just pulling up the old contract, changing dates and such then charging me that $1700 dollars to do this.
So my question is, do I still need to go through my agent to draw up another lease contract? I don't see why I couldn't just create my own lease contract with similar lease elements in it from the existing contract that was signed last year and have both the renters and myself sign it again.
Am I missing something here? Do I really need to go through the agent to do this? Wouldn’t this still be a binding contract under the law?
Thanks in advance for any thoughts and advice.
Re: Advice on Extending/Renewing Rental Lease Agreement for My Tenants
What does your deal with this real estate agent cover?
If it was only to find tenants (and that was ALL she did as opposed to other property management duties) then your argument would be she is not finding you tenants for you.
Gail
Re: Advice on Extending/Renewing Rental Lease Agreement for My Tenants
Thanks for the response.
Yes, the only real purpose for hiring the agent was to find a suitable tenant for me. She didn't have to do anything other than that.
No property management duties at all. I did all that. Rent checks came to me only. I dealt with issues/questions/concerns from the tenants this past year.
Re: Advice on Extending/Renewing Rental Lease Agreement for My Tenants
Just as a side note, she charged you an 8.3% commission just to find a tenant. Most property management companies charge 6% for complete service including finding tenants, coordinating repairs, bookkeeping, monthly statements, etc.
Re: Advice on Extending/Renewing Rental Lease Agreement for My Tenants
So instead of creating a whole new rental contract couldn't I just do an addendum to the existing contract? I'm not changing anything at all on it. I would think just an addendum with the new lease dates that are agreed upon should be sufficient right?
Thanks again for your responses.
Re: Obligations to a Real Estate Agent When Extending or Renewing a Lease Agreement
Whose contract is it? You cannot use her contract, draw one up of your own.
Re: Obligations to a Real Estate Agent When Extending or Renewing a Lease Agreement
Yes, the original contract was from the agent....which has now expired.
As I said in my last post though, I think I can just do an adendum stating another year extension which binds the Lessor and the Lessee to the terms and conditions of the original lease. I don't see why I couldn't just do that unless I'm missing something.
Thoughts??