Letting agent cease fee = 12 months fees.

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    Letting agent cease fee = 12 months fees.

    Hi All,

    I became a landlord back in January 2019 when I moved in with my partner, and we rented out my property. I used a letting agency, as I didn't really have the time to invest in learning how to manage a property myself. The letting agent got 3 tenants in on 12 month agreement, that has now continued on a periodic arrangement that I am happy to stay with as are the tenants. The management of the property by the agents has been terrible, I have been dealing directly with my tenants for the last 6 months with any issues (I have had a few water leaks). Anyway I wish to cease management, letting agency are stating it's a £1248 cease fee (8% X £1300 rent x 12 months). Have attached the clause 8.4.4 they are saying applies, any thoughts? I am happy to pay the 3 months notice fee I believe is fair.

    #2
    Nothing attached.

    Such termination clauses are, however, pretty stanard in agency contracts.

    Bear in mind that if these are unrelated tenants, the property will be an HMO and the full HMO Management Regulations will apply.

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      #3
      Tell the letting agent that you feel the charge is, given the level of service you have received, excessive. Tell them you are happy to pay 3 months' fees and no more. See how they respond.

      If you're still not happy, try approaching the redress scheme the agent is a member of. They can make a judgement over fees to landlords where they are excessive, or disputed due to poor levels of service.

      Comment


        #4
        Refer the agent to paragraph 5 of the list of terms which may be regarded as unfair set out in Schedule 2 to the Consumer Rights Act 2015:

        A term which has the object or effect of requiring that, where the consumer decides not to conclude or perform the contract, the consumer must pay the trader a disproportionately high sum in compensation or for services which have not been supplied.

        One month's notice or one month's commission in lieu of notice is reasonable.

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