Are returning tenants subject to agents commission clauses?

Here is a question to the blog clinic from James (not his real name) who is a landlord:

Hi – An agency found me a tenant some time ago for 18 months with a break option after 6 months.

The tenant is going to the US for 3 months and is ending the contract. But he has asked if we can deal directly when he comes back, if the flat is still available.

I know I have an agreement with the agent to pay them commission for renewals but, given that the tenant actually leaves the flat, would I still have to pay the agents their commission?

It will really depend on the wording of your agency agreement and you need to read this carefully.

I suspect that if the tenancy actually ends as you say and the tenant moves out with you getting vacant possession, this will mean that if they come back several months later, this will be a new tenancy and not subject to the commission charge.  However this is not necessarily the case.

For example you could have a problem the it is specifically agreed between you and the tenant that he will return, and you keep the property  for him and do not offer it on the market.

You would be in a better position if the property was re-let to someone else in the interim.

However as I said, it will very much depend on the precise wording of the clause in your agency agreement.