13:50 PM, 15th July 2020, About 10 months ago 11
I think my property management agent is proposing an unfair contract and I’d appreciate the views of the wise landlords on this forum.
For more than 10 years I have employed the same agent to manage my rental property in London. My tenant of the last 5+ years is leaving and the agent has sent me their latest property management contract, which is completely different to the previous contract. This may be because 10 years ago they were a local company with a few branches, and since then have been taken over by a bigger company, which itself is part of a network of similar businesses.
Some of the clauses in this management contract seem unreasonable and one-sided, for example:
1) If you no longer require our services you can give us 12 months notice in writing to end this agreement at the end of the sixth year of the Tenant’s stay in the Property.
2) In the event of the Tenancy ending, it is agreed that we will be re-instructed to find a replacement Tenant on a Sole Agency basis for a minimum duration of 12 weeks from the date of notice being served. If you wish to terminate our appointment you must give us 28 days notice in writing.
3) Where a Tenant introduced by us is replaced as a Tenant (whether or not under a formal Tenancy Agreement) the fee will remain payable to us for as long as the new Tenant continues to rent the Property.
4) Throughout the duration of the Tenant’s stay in the Property we reserve the right to alter our terms and conditions or administration charges by giving no less than three months written notice.
I have asked for changes to these clauses, but feel as though I’m not getting anywhere. The agent says that their other landlords aren’t worried about this contract and everything will be fine.
The property is usually let on fixed terms of between 6 and 12 months at a time to a Tenant comprising 4 individuals. While I am satisfied with the agent’s performance at the moment, I think I should be free to change agent on 2 month’s notice at any time after the first year of the tenancy if I’m not satisfied with their performance, but It looks to me as though I would have to evict the tenant in order to be able to change the agent.
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