Landlord asking for tenants to pay letting fee for early tenancy end

Tenant Discussion
1

I’ve signed a 12 month contract for a flat through an estate agents and due to personal circumstances I may have to end my tenancy a month or two early. I am prepared to pay fees etc but when I asked my estate agents about ending my tenancy early and what the process of that would be, I was told I would need to pay rent and bills until a new tenant was found, which seems normal, and the sum of the letting fee for the flat. I can’t find anything online about whether this is even legal, as it doesn’t seem like it is. Does anyone here know if this is right? Thank you !

2

I believe you would only pay re-let fees if it’s before the end of the fixed period. If you paid rent and bills upto the end of the fixed term then they can’t charge re-let fees.

Ending tenancy early is discretionary.

3

So charging the tenant for the letting fee is illegal, or at least not allowed you think?

4

No its legal and totally reasonable.

If you reach an agreement to leave your tenancy early

If you need to leave before the end of your tenancy, your landlord or agent can charge an ‘early termination’ fee to cover any reasonable costs. For example, rent up to the end of your fixed tenancy period or costs to find a new tenant.

5

The agent can charge you a fee to re-let the property, but probably only up to £50, and only if your tenancy finishes early.

6

It’s the landlord technically charging the re-let fee. Landlords are typically charged a months rent to find a tenant by an agent.

If it costs the landlord a months rent in fees to find a tenant then it’s reasonable to pass this cost onto tenant if they wish to surrender their tenancy early. It would make no sense for a LL to do it otherwise.

Tenant fees act allows for the below:

  • payments associated with early termination of the tenancy, when requested by the tenant

Note it references £50 in relation to contract amendments…

7

@Mark10 that was always my reading of it too, but I was taken aback by the court judgement last year which ruled that £50 was the maximum. It seems that the court didnt accept arguments that that landlord had to pay more to the agent or that the landlord/agent was effectively ending the tenancy and therefore able to charge their costs. The case wasnt binding, but does introduce the element of doubt into proceedings.

8

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