Have a long-standing tenant, with whom have had a fairly decent relationship over the years.
We agreed to renew the AST in June 2025. Previously - all renewals have been 6months to give 2months notice - ie leave month 8.
Their circumstances are now such that they would like to exercise this.
However, we (tenant and landlord) are now looking over the AST - to find that the most recent agreement that was drafted by our Managing Agent has stated a 10month break clause.
(yes - both of us should have been more diligent in double checking before signing - the Managing Agent gave no communications that there would be this change in terms from previously)
Both Landlord and Tenant are fine with making changes by signing a mutual agreement - a âDeed of Variationâ? - where the only thing changed is the early notice - reverting back to the original 6 months.
My Managing Agent (naturally) is looking to charge a fee for this, but we have been informed that as the contract is between the Landlord and the Tenant, we can go ahead and do it ourselves?
Whilst obviously keeping the managing agent in the loop
Can I double check with this community that this is correct?
I had a quick lookup on OpenRent resources [below]
Does OpenRent have a template that they can recommend using? [AI has provided a couple of decent versions, which we may use.
I agree with Karl. There was never a need to renew the tenancy and it was never in your interest to do so.
I would suggest that the easiest way for the tenant to leave early is for them to serve you with a Notice to Quit at the relevant time. The notice will be invalid as it canât over-ride the terms of the tenancy, but you can make it valid by formally accepting it. You donât need the agent for any of that process.
@Alpha1 ps you and tenant could also consider using a mutual deed of surrender to end the tenancy. (If you change the break clause they then still have to give notice.)
Check what contract you have with managing agent esp how to terminate it! May be penalty charges if you end before the tenancy or they may retain all of annual fee if tenancy ends before the end of annual period. Or the agreement might include charges for every change in the TA (whether done by agent or not). Either way they have been taking advantage and If changed the break clause without informing you or following your instructions then they may have a case to answer. Are they a member of any professional body?
Anyway you and tenant can change or amend a TA any time you like if you both agree.
Try rocket lawyer to create one to change the wording of the current break clause back to what it was in earlier versions
I think the changes to the Tenancy Agreement can be handled between us (Landlord) and Tenant without to much issue - but obviously we will need to inform the managing agent.
A bit more difficult will be the T&C with the managing agent.
Background
been with them for 7-8 years
management changed in a merger/takeover in 2021
tenant has been with us since that time under similar AST
obviously there were new T&C under new management
whilst we did review - the new T&C - we focused more on the negotiation of rates
now with the help of AI tools - we have identified that they had added a Major New Restriction via a Fixed Term constraint
this means that potentially that if we want to serve notice to terminate agreement with the managing agent, we can only serve a 3 month notice at the end of the existing tenancy
ie we potentially face a 4 month void where we do not collect rent and still have to pay the fees.
Iâm looking back at correspondence and cannot seem to find communication highlighting the changes of this T&C.
AI suggests that we have a strong basis to challenge Non-Disclosure of Material Change and demand a Waiver with a view to threaten TPO Complaint.
Iâm conscious of the fact that AI doesnât always get it precisely right.
But does this seem right?
when the ownership/management of the agency changed, you could probably have ended the contract, but as you continued to use them, Iâm not sure this option is available to you any longer. Youâd need to check it with a solicitor.
You should also check whether the contract contains a clause saying that there is a penalty if you want to terminate but keep the tenant. This is common practice and something you should be prepared for.
If you intend to self manage in future, you should be aware that letting property is a legal minefield with severe penalties for simple mistakes. Without the relevant knowledge/training, this is a big risk.
Could be you have to pay 3 months of fees to managing agent at end of tenancy or the latest âfixed periodâ but youâll be better off without them.
but I canât see why that would mean you canât have a new tenancy agreement with a new tenant (just not with current tenant - these sort of clauses allow agents to stop LLs dropping them mid tenancy) so you wouldnât have a void period. Seems v doubtful they could legally stop you setting up a new tenancy with a new tenant at any time you like, itâs your property.
Ps Ps If the fees for tenancy renewal arenât in your contract then you may well have a case against the agent to reclaim these especially I suspect if they didnât explain that the tenancy renewal was an option and not required as you could have let tenancy become periodic.
As a letting agent they legally have to belong to a govt approved redress scheme find out which one Iâd suggest trying getting redress as they have clearly appeared to not given you professional advice and have taken fees in their interest instead.
Sadly lettings agents are a bit of a wild west (othersâ words not mine) and too easy for them to take advantage of LLs