Agent charges Landlords Exit Fee after 15 years

by Readers Question

10:05 AM, 4th April 2015
About 4 years ago

Agent charges Landlords Exit Fee after 15 years

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Agent charges Landlords Exit Fee after 15 years

Agent charges Landlords Exit Fee after 15 years

My management agent has just sent me an invoice amounting to 1 months rent plus 3 months management fee to terminate their services after 15 years!

The same tenant has occupied the property since the start of the Tenancy Agreement and continues to do so, I intend to self manage the property.

I do not recall having signed a contract with the agent 15 years ago separate to them preparing the Tenancy Agreement,

I have requested they provide a signed copy of the agreement but they say this is archived.

The Agent is a member of ARLA.

Can anyone confirm whether they have experienced an Agents exit fee from Landlord/Agent Agreement, and whether a standard agreement exists in the industry.

Does anyone know what a fair exit fee may be.

Thanks

Alastair



Comments

Mark Alexander

10:10 AM, 4th April 2015
About 4 years ago

Exit fees are often charged by agents but not all of them do so.

Unless there was a written agreement which is clear, fair and not unreasonable then you are well within your rights to challenge the fees and you are highly likely to win in Court.

There was a huge Court battle over this a few years ago when the OFT took Foxtons letting agents to task. The OFT won but Foxtons continue to charge exit fees having now made their T&C's far clearer - details here >>> http://www.thisismoney.co.uk/money/mortgageshome/article-1689826/Foxtons-unfair-landlord-fees-are-banned.html
.

Alastair Lygate

19:19 PM, 4th April 2015
About 4 years ago

many thanks for the update Mark,I will post the outcome.

Paul Thomas

10:28 AM, 6th April 2015
About 4 years ago

We, as Landlords run a business. And at times, if someone has rented a property for a period of time we give a little here and their. Because the tenant has been in the property for a while.

I think the stance being taken by the Agent is stupid. The current landlord will never use them again for either letting or buying (if they sell a house) and will prob. tell all of his/her friends about the situation.

My parents had an issue with an agent when they went to HK for 3 years. I've never touched the agent, and I have happily informed any landlords about their service !

You're first step, as previously mentioned is to get the agent to show you (archived or not) the associated documents. If they can not find it... Fine, take them to court. They will back down.

money manager

11:31 AM, 11th April 2015
About 4 years ago

Contracts other than for land can be verbal but if they can't show you the contract signed by you they are flying a kite.

Nick Pope

17:07 PM, 11th April 2015
About 4 years ago

This happened tome recently when I requested a reduction in the level of fees (9% for rent collection only) after 5 years with the same tenants. Local manager seemed to agree that it would be fair in the circumstances but his area director gave a blank "No" or we had to pay 1 month's rent as an exit fee.
So the tenants left the following month (having been offered another suitable property close-by which was a little larger and offered more space for baby #2 wonder who did that for them) and I terminated the agreement.
I made it clear that I would never use them again and dropped into the conversation that I had just bought 2 more BtL's so they had actually lost the opportunity for further business for ever.
I now only employ agents to find tenants and if they do manage then the agreement is limited to 1 year after which I can terminate at any time. This is non-negotiable and if they don't like it they don't get the opportunity.


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