Letting Agents trying to charge Landlord Exit Fee after Lease Ends

[elaine67]

I'm looking for some advice.

I signed with a letting agent almost 2 years ago and i'm now renting to my 4th set of tenants. They have all signed 6 month Short Assured Tenancies. Anyway, I now want to take back the property for my own use and have given the letting agent 2 months notice to teminate the lease so that it will be terminated at the end of the 6 month lease. I have always assumed that the lease ended at the end of the 6 months unless either party terminated.

The Letting Agent is saying that's fine but since the tenants want to stay longer then we will have to pay the Agent a fee of 1 months rent to them for terminating during a tenancy. It would be fine if the tenant didn't want to stay or had given notice themselves but because they want to stay then we have to pay it.

The letting agents terms & conditions do state that if you terminate during a lease then they are entitled to charge this fee but I think this is wrong since it's the end of the 6 month lease and I have always assumed this. I was aware of this clause but always assumed this was if I terminated early - say after 2 months. It basically means the lease is ongoing as long as the tenant wants to stay so the Landlord is caught either way. If the tenant leaves then they have to pay to find a new tenant and the only way a Landlord will pay no fee is if they take back the property after a tenant has left of their own accord.

Has anyone ever heard of this?

Thanks

[Melboy]

New one on me but there again it doesn't surprise me one bit at some of the obscure money grabbing clauses that some letting agents put into their contracts and tbh it's a right turn off isn't it. I guess Landlord's need to scrutinise their contracts very closely before committing pen to paper and signing up.

I would challenge their wording and point out to them that you are not ending a contract early but as normal Landlord Tenant terms of notice.

There are 2 experienced LA's on this forum so their comments will be of interest to you.

Mel.

[Mortitia]

I have never heard of this myself but like Mel says - some agents are out to get as much money out of you as possible.

Slightly against your case is that you knew about the clause and still signed the contract.

In future try this it has worked for me. If you see a clause you think unfair or unreasonable in the contract strike in out in ink and initial in the side margin. The agent will see (or not) this and either accept your attention to this item or lose a client.

Mortitia

[Trenners]

Hi elaine67,

I am one of the letting agents mentioned, above, by Melboy.

I have never come across this term before and it does seem very odd, very unfair and certainly worth challenging. The main line of argument needs to be that you are _not_ terminating during a tenancy. You are serving 2 months notice - as required under the Housing Act - to recover your property at the end of the tenancy.

I would then go on to say that you will not be paying their unreasonable or unfair fee (which is not due) and that you will take legal action, contact trading standards and contact the local newspapers if they try and withhold any unreasonable fee from you.

I would also make sure you are dealing with the "organ grinder" and not "the monkey". In other words - insist on dealing with the owner / Director of the letting business. Make it clear that you are not going to back down and that you mean business.

That should do the trick. In my experience, most letting (and estate) agents are full of hot air (current company excluded) and once you show you are not going to be bullied or intimidated - most will back down to avoid adverse publicity.

Good luck and let us know how you get on .....

Mark