{"id":208040,"date":"2025-04-27T04:03:36","date_gmt":"2025-04-27T04:03:36","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/real-estate\/are-these-letting-agents-entitled-to-insist-on-a-12-month-termination-clause-the-landlord-law-blog\/"},"modified":"2025-04-27T04:03:36","modified_gmt":"2025-04-27T04:03:36","slug":"are-these-letting-agents-entitled-to-insist-on-a-12-month-termination-clause-the-landlord-law-blog","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=208040","title":{"rendered":"Are these letting agents entitled to insist on a 12 month termination clause? \u00bb The Landlord Law Blog"},"content":{"rendered":"


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\"TerminatedThis is a question to the blog clinic<\/a> from Stephen, who is a landlord in England.<\/p>\n

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I am seeking legal advice and support regarding a dispute with my letting agent over an exit fee they are attempting to enforce as part of ending their property management services.<\/p>\n

I am a private landlord with only one rental property. Since 2018, the property has been managed by a local estate agent. I\u2019ve had multiple tenants throughout the years and paid all required introductory fees without issue.<\/p>\n

The current tenant is on a rolling monthly contract following the expiry of the fixed term. Due to rising costs, I have decided to manage the property myself. However, after requesting a copy of the original 2018 contract, I was surprised to find a clause requiring a 12-month management fee to terminate the agreement, even though:<\/p>\n

The tenancy is now periodic. No further service is being provided by the agent. The termination would involve minimal administrative work.<\/p>\n

I find these fees excessive and unreasonable. I have tried to negotiate, offering the equivalent of three months\u2019 fees as a compromise, but the agent has been unwilling to engage in a constructive resolution.<\/p>\n

My Key Concerns:<\/strong><\/p>\n

The termination clause may be unenforceable under the Consumer Rights Act 2015 and the Unfair Terms in Consumer Contracts Regulations 1999, especially as I am a non-commercial landlord.<\/p>\n

Support I Am Seeking:<\/strong><\/p>\n

Legal advice on whether the termination clause is enforceable in this context.
Guidance on my rights under relevant consumer legislation.
Recommendations on how to formally dispute the charge.
Any other guidance and support you may find necessary.<\/p>\n<\/blockquote>\n

Answer<\/h2>\n

I agree with you that the termination clause is probably unenforceable under the consumer legislation. 12 months\u2019 notice, where the agents are not actually doing any management work, sounds excessive to me.\u00a0 There are two courses of action open to you:<\/p>\n

1. Refer your complaint to your agents\u2019 property redress scheme<\/h3>\n

I note that your own negotiations with the agents have not been successful. This means that you can now bring a complaint to your agent\u2019s Property Redress Scheme<\/a>. All agents should belong to one of the two schemes, failure to do so makes the agency unlawful. The schemes and their websites are:<\/p>\n

Both schemes\u2019 websites have detailed guidance on what you need to do to bring a complaint.\u00a0 Or you could ring them up and have a word with them.<\/p>\n

2. Just write and cancel the agreement<\/h3>\n

If you don\u2019t want to do this, then you could just write to the agents saying:<\/p>\n