UK Landlord Forum / Life

I am a landlord and along with the tenant signed an assured short hold tenancy agreement, where the estate agent charges 8% of rent per month for a "rent collection service" only. This tenant was sourced by the estate agent.

To be completely honest, apart from finding the tenant and a week later sending me the rent (balance after fees) the estate agent has done nothing else for me. Therefore, as the 12 months comes to an end in May 2016 I am thinking of having the rent paid directly to my bank account, and getting rid of the estate agent altogether. The tenant is in full agreement with this new arrangement.

However, the estate agent has offered me two options:

1) To charge me (in advance) 6% of rent per annum + VAT for the pleasure of finding the tenant as a "let only fee", for as long as this tenant stays in the property; or

2) A one off payment on 12% + VAT of the annual rent to break the contract and after which I would not be liable for any other payments.

I know that one possible way of throwing the estate agent out of the equation for good is to ask the tenant to give me and the agent formal written notice (however the tenant really stays in the property).

Are there any other suggestions as to how I could get rid of the estate agent?

Read the Terms of Business you signed with the Agent. If those cancellation fees / penalties / what-have-you are in there... then you should pay them. After all, you read it all before you signed, right? If they are not detailed in those Terms of Business then how the Agent thinks they can charge them is... interesting.

Have you got terms and conditions, or a letter of confirmation? If nothing is mentioned here, write to the agent and ask why they want more money as you have no intention of giving them anything  and you want them to go away.

I fear you have no other option. If the agent is fulfilling their (modest) obligations then they are within their right to invoke whatever termination clauses you signed in the contract. Lesson: beware of long term agreements and always read the exit clauses since they are unlikely to be in your favour. I would not suggest that you encourage your tenant to terminate only to reinstate them. This could be seen as fraudulent and in any case will probably cost you more than the 12%.