Early Termination Fee

GDB2222

Agent commission varies between 6% and 10% in my experience. 

[Deleted User]

davidmcn said:

Rainey123 said:

macman said:

Your response is rather more likely to result in them rescinding their one month offer and requiring you to serve out or buy out the full remaining term. 

They've found a tenant already. 

You didn't mention that in the OP.

Because they've just called to tell me. Anyway it's sorted so, as you were. Have a lovely day!

[Deleted User]

GDB2222 said:

Rainey123 said:

GDB2222 said:

There are a few practical issues to consider alongside the legal ones. The landlord’s actual costs may include a void period after you move out. They cannot sign a new tenancy agreement until after you have moved out. And that’s assuming that they can get a new tenants tall quickly.  There’s the agency fee, which is probably around a month’s rent plus vat, less any rebates for the unexpired portion of your lease. Depending on where you are, current rental levels may be lower than when you signed up. So there’s a loss there.

The point I am making is that the actual costs could easily be more than one month's rent, and they won’t know that until they get a new tenant. I’m quite surprised that they are letting you off so cheaply!

They have already found a tenant. Thanks, that's all I wanted to know. I simply wanted to check that this was not an excessive fee, that's all!

It may help if I say what it has cost me, as a landlord, in a similar situation. The agent charges me 8% of  the rent as commission. So, for a year, that works out as very close to one month, and that’s what I would pay on the new tenancy. However, if a tenant leaves halfway through a year, the agent rebates me half of the commission on the tenancy that is ending early. So, arguably, my net cost is only half of the 8%. 

What is not relevant is what it costs the agent to find the new tenant, as they are not party to the tenancy agreement.

I suggest that you leave any such arguments until after the tenancy has ended.

That's really helpful, thank you. If a tenant leaves halfway through the year, what do they charge you to find a new tenant? I'm not arguing with them, I've agreed to pay it. They've literally just found a tenant, which is great. I'm not looking for an argument with them.

GDB2222

Well,as I said, they charge me 8% on the new tenancy and rebate me proportionately on the tenancy expiring early. Of course, the agreement between the LL and the agent may well be different in this particular case. 

And the rebate is not in the agreement. It’s a matter of goodwill. So, they can easily hide it from you.