Updating post from Reddit.
Hi all,
I rent out a property and use a letting agent on a fully managed basis. Back in January, the tenants reported that a fence in the back garden was broken. It's now April, and despite multiple chasers, the agent still hasn’t arranged for it to be repaired.
I’ve had enough and want to terminate the contract, but there’s a clause that says we must pay a "one month’s rent" cancellation fee if we end the agreement and keep the existing tenants.
Given their clear failure to carry out essential repairs in a timely manner (and arguably breach their duty of care), do I have a leg to stand on if I refuse to pay that fee?
Has anyone been in a similar situation or challenged this kind of clause successfully? Any advice appreciated!
Read the contract. It will have the cancellation terms in it.
The responsibility to make repairs is yours, as the landlord, not the agents. Even if your contractors, the agent, is poor, it doesn’t change who is responsible for fixing the fence.
Sorry, I wasnt very clear with my post. The fence isnt ours, but belongs to the a housing association behind our house.. The EA was supposed to be arranging the repair with them, but the housing association are denying ownership of the fence, saying nobody owns it. I only know this because the neighbor has spoken to the housing association.
It looks like the estate agent hasn't done anything yet.
I have been assuming this whole time that it has been sorted out, but it seems like i've been paying 12% and getting nothing for it.
If the housing association are denying responsibility for repairing the fence then what are you expecting your estate agent to do?
Maybe call me a give an update
If the estate agent is for management your rental agreement with your tenants they would have nothing to do with the separate housing association. Thats your job to chase.
In your original post you said they're not carrying out the repairs. Have you instructed them to carry out the repairs?
Is there a term in the contract that covers this? What grounds are listed for cancellation of the contract?
Unfortunately, retaliatory breach of contract (by not paying the termination fee) is not an available legal remedy for the agents breach of contract.
Assuming the full management contract includes an obligation to arrange for repairs, then the agent would be in breach of contract for not doing so.
Also assuming that the agent did not arrange for the repairs at all (as opposed to them having arranged it but the repair process is going very slowly), then you would be able to claim costs or damages you have incurred that are directly related to that breach.
For instance, if due to the agent not repairing the fence in good time, the fence collapses and you incur further costs - then you may be able to claim those further costs (or at least the excess on any insurance claims).
If you haven't incurred any costs or damages persay, you could file a formal complaint with the agent and request some partial fee refund. If not satisfied with their response, you may escalate to their property Ombudsman who may be able to award some compensation.
However, retaliatory breach (by not paying your one month termination fee) is not an available legal remedy. If you do so, the agent will also have the right to sue you for the unpaid fee.
Short answer is no. Legally the two things are entirely unrelated.
Arrange to do it yourself and cut them out the middle? They sound more hassle than they're worth. If it comes to any court action from tenant/council then they won't defend you it sounds like.
Make sure you have proof of contacting them. Then tell them they have refused this. If they still don't reply, get a lawyer to send out a legal notice.
Of course you contract should say their obligations too.
All this huff over a £30 fence panel? Just get it ordered and spend 10 minutes fitting it. Why make a scene?
Except that the fence apparently belongs to someone else.