UK Landlord Forum / Life

Is there a way out of this?

"a tennant found by the agency may remains in occupation in the property then a sum equal to six months rent shall be paid by the landlord to the agency"

We're pretty disappointed by our current agents and would like to terminate the current contract. This is the only clause that seems to relate to our current situation and it seems very unfair. Maybe we are wrong, but we have been let down by them previously. They failed to do the necessary work to find the tenant, due to tensions within their organisation and they have been late paying the rent by several days due to changes in their book keeping system. We would not sign the contract again, and contracts with further agents will be investigated thoroughly. Our tenant is currently on a periodic tenancy after their first six months.

What is a fair fee for terminating? We are in the process of buying further properties which we would like to be managed by an agent at first before eventually taking over ourselves. It does feel like we're locked into things with them until the current tenant leaves.

If you want to be rid of the Agent, then you're going to have to terminate their services anyway.

I would, personally, get everything set up for dumping them and then assumptively inform them that their services are no longer required from X date and see what happens. It seems likely they'll scream and shout... but I would not pay that termination penalty under any situation... I'd let them take me to Court where I would feel confident it would be seen as an unfair term and condition. Yes, you signed it. Yes, you should've really known what you were doing. But, also yes, the Agency has not lived up to your expectations. By being set up for dumping them I mean you will have everything in place... deposit sorted out, Tenant on-side, rent going to you blah-blah-blah.

What is a fair fee for terminating someone who isn't doing a good job? £0?

You could always settle on keeping this inept Agent at a reduced rate to make yourself feel better. I'm sure they'd prefer something for nothing, rather than nothing for nothing.

Just a quick post so you can see how things sometimes work from the agents perspective - a landlord gives you instructions to let and manage a house that they know is riddled with hidden problems, tenants are found and then the problems manifest themselves all of which are sorted out by the managing agent including dry rot work costing in excess of £6000. Would you be happy if after a year the landlord tried to terminate your services because the property was now problem free? 

I know it seems an extreme example but it has happened and I was that agent.

All the same, six months rent seems a ridiculous figure especially if the agency are doing a poor job.

Yes, but you - as Agent - didn't pay out that £6,000 and not be fully reimbursed by the Landlord in question, right?

Its a fair point. And I do appreciate that the agents are doing a job. However when you have already paid a fee for finding the tenant and the majority of jobs, or only job (which may have been the previous tenant) have been a simple call out of heating engineer. From what I can see Agents are kind of gambling. Some tenants, and landlords, are a dream, others are more difficult. Market forces dictate that if there was no profit no-one would be doing it. Perhaps there is no profit and this is why some Agents often charge both tenants and landlords for the same thing, or even as with the letting find fee/contract termination charge the same person twice. I accept there are good agents out there but an awful lot of bad press is being generated by some. Suspect legislation isn't far away.