Early Release fee from my 12-month tenancy agreement

Note_of_Dis-accord

I currently live in a rented house with my family on a 12-month AST which started in Dec 09. I am serving in the Armed Forces and I received an unexpected short notice assignment to a location too far to commute to, even on a weekly basis.

We are planning to re-locate 8-months into the 12-month tenancy and we have our landlord’s approval to do so. We have yet to formally submit our notice as we have not yet got our new address confirmed by the MoD; the landlord is also aware of this.

There is a break out clause that I am perfectly happy with, which states:

‘If for any reason you request an early release from the fixed term AST agreement, and the landlord subsequently agrees to this and confirms in writing , you will then become liable for any fees the landlord may incur for a new tenant to be sourced – no less that £495.00 plus VAT. This will be invoiced to you direct and payment will be due within 7 days of release from this contract’.

However, my landlord is insisting that a particular agent is used in the town to find a new tenant. They charge a tenant finding fee of one-months rent + VAT – our rent is £820. I have done some homework and I have written a polite email to him and stated that there are agents with similar reputations that offer the same tenant finding service for less. One charges 70% months rent + VAT and another, a fixed fee of £395 + VAT. The £395 agent has very recently found a tenant for a landlord at a house across the cul-de-sac within 7 days of full marketing. I have stated to him that I feel he could use the £395 agent as they have the most recent form and in the process he would pocket £117.50, as that is the difference between their fee and the minimum release fee. I also stated that the AST does not stipulate the use of his preferred company and that it is his choice and not an obligation of mine to use them, as other equally reputable agents are available.

I did not receive a reply to my email, so I wrote him a letter and sent another email to him with the first letter copied. I stated that I was concerned that he may not have received my email as I had not heard from him and that I was keen to resolve matters quickly as time was pressing. I stated that if I did not hear from him by a given date (which was 2 ½ weeks from the date of the original email), that I could only assume that he would be content with the offer I made of £495 + VAT.
I did receive a curt email response which stated:

‘We will follow the contract and full cost to replace. Contracts are not changed by sending emails and claiming agreement to lower fees if you get no response.’

As far as I am concerned the full cost are not stipulated and I have found a solution within the minimum breakout and in fact I was not attempting to lower these costs merely agree to them with him.

Can he make me pay to find a tenant using an agent he chooses, even though I have found others that will cost me less and provide the same service?

If he wanted to use that specific agent or another that charges one-months rent, should that have been the stipulated as the minimum release fee in the AST?

What in fact does the minimum fee actually represent?

Have I done the correct thing?

I believe I could find a replacement tenant and offer that to the landlord; is that true?

I would be grateful for any advice on this as the difference what he wants to charge me and that specified in the AST amounts to £381 for getting exactly the same service.

G_M

It is up to the LL who he lets to, so although you can present him with a prospective tenant it is up to him whether that tenant is acceptable.

similarly it is up to the LL which agent he uses.

You signed a 12 month contract and basically that's a commitment. You have a break clause. I'm afraid there are costs associated with activating it.

Note_of_Dis-accord

Thanks for the prompt post. I completely understand that I signed a contractural obligation. What is the point in having this minimum fee stipulated in the AST. I thought the usual test to apply in these matters is 'reasonable' and I think that I'm attempting to be reasonable as I'm not trying to absolve myself of any responsibility for this and appreciate his position as well as mine.

I am a landlord of 2 of my own properties, although I've never been faced with this myself, I think it is a fair offer, although I do concede in this situation the shoe could be considered to be on the other foot.

clutton_2

landlords - as you should know - are legally allowed to charge you rent until the end of the fixed term whehter you live there or not.. they do NOT have to agree to an early surrender .. so your landlord is being very flexible in allowing you to leave early. He is perfectly entitled to charge you marketing costs to replace you - he is also allowed to choose HIS new tenant and the agent who works for him...

stop trying to wriggle out of your responsibilities

it will be very interesting to hear which side of the fence you come down on when one of your tenants does this to you.....

I'm a LL of 11 years and think you are being unreasonable...

Note_of_Dis-accord

Well we're all entitled to our opinion, that's why I posted on here and I thank you for yours.

I don't feel as if I'm trying to wriggle out of anything as there is a breakout in my AST. I just don't feel that the costs in this instance are justified when there are alternatives available.

I did not plan for this to happen and unfortunately, it's an occupational hazard that I may endure in my profession serving my country when at times I may have to move at short notice - this is the first time it has happened to me.

To give you an idea of the type of person I am, when not long into our tenancy and with a small child at home, we had no means taking a bath or shower! The bath leaked through a poorly maintained pipe and the en-suite shower was broken at the same time - poor installation. This lasted for over 2 weeks, I did not complain, I worked with my landlord and we got support from our family - I was just hoping for a little of the same in reply. I'm not asking him to dip his hand in his pocket, just reduce my costs in replacing my commitment.

So for me, as a landlord, its not money at all costs - working with your tenants is important too......!

I don't know if you share that view also?

chewmylegoff

Note_of_Dis-accord wrote: »

I don't feel as if I'm trying to wriggle out of anything as there is a breakout in my AST.

this is not a break clause, it is a clause which says that if the landlord agrees to cancel the contract early then you are liable for his costs which are a minimum of £495+VAT. you have asked him to release you, he has agreed, and now he is levying his costs according to the contract. you are exiting 4 months early so he is releasing you from an obligation to pay him £3,400, seems reasonable that he wants to relet the property through the agent of his choice and charge you accordingly, in line with the contract.

note that the agents fees may not be as simple as stated - they may also charge a percentage of the rent on an ongoing basis, so it may be that the one with the highest up front fee is the best deal for the landlord.

Note_of_Dis-accord

Thanks for your take on this and correcting the status of this fee, it was somewhat confusing and I could not find anything on the net that described this. Would have been easier if he'd stated one months rent + VAT in the AST. There would be no discussion.

These posts of course have no context. This property is also in a highly desirable city centre location, and any agent would have no diffciulty finding a replacement - in fact he accidently instructed the house to be remarketed without a submission of notice from me (a little naughty of him). 4 prospective tenants within 4 days and another even willing to sign up without viewing - all professionals as per the landlords requirements. I only found out when agent attempted to arrange a viewing!

All the agents fees are straight forward tenant finding fees, offering inventory services and handover etc. This is also straight forward as the property is unfurnished, virtually no inventory. Landlord self manages through a friend -no fees there either

Fire_Fox

You signed a 12 month AST, knowing you could be posted within that time. If you wish to deal with this in a formal manner, you shouldn't be using e-mail. It may be that there are cheaper agents, but you would have an impossible task in court to prove that they provide an equal service, in any case a exiting tenant cannot choose who a landlord is contracted to in the future! I think you are getting confused between what is reasonable/ fair and what is minimal.

clutton_2

""any agent would have no diffciulty finding a replacement - in fact he accidently instructed the house to be remarketed without a submission of notice from me (a little naughty of him). 4 prospective tenants within 4 days and another even willing to sign up without viewing - all professionals as per the landlords requirements. I only found out when agent attempted to arrange a viewing!

All the agents fees are straight forward tenant finding fees, offering inventory services and handover etc. This is also straight forward as the property is unfurnished, virtually no inventory. Landlord self manages through a friend -no fees there either ""

In this context you are a tenant.... not a landlord .. so none of this is any of your business.. this is the LLs business.. and he is running a business... you signed the AST and accepted the T&Cs in it.. what we sign binds us.......

sorry if this sounds blunt... i also am both a LL and tenant and i dont always like what my LL wants... thats life.. i signed the AST... i agreed to abide... end of....

Planner

My view is that not only will you be liable for the fee to activiate this clause (£495+VAT) you will also be liable for the rent until a new tenant is found - still likley to be considerably cheaper than a further 4 months rent, assuming a new tenant can be found promptly.

Colincbayley

Note_of_Dis-accord wrote: »

As far as I am concerned the full cost are not stipulated and I have found a solution within the minimum breakout and in fact I was not attempting to lower these costs merely agree to them with him. ( your landlord does not have to limit his costs )

Can he make me pay to find a tenant using an agent he chooses, even though I have found others that will cost me less and provide the same service? ( only if YOU want to break the contract early )

If he wanted to use that specific agent or another that charges one-months rent, should that have been the stipulated as the minimum release fee in the AST? ( No )

What in fact does the minimum fee actually represent? ( Breaking a contract early )

Have I done the correct thing? ( I would say no, seems like you are just peeing him off )

I believe I could find a replacement tenant and offer that to the landlord; is that true? ( yes, but your LL does not have to accept the tenant )

I would be grateful for any advice on this as the difference what he wants to charge me and that specified in the AST amounts to £381 for getting exactly the same service.

( Your LL is being more than fair and resonable in my book )