Landlords, read your letting agent’s contract before you sign it!
Those are terms I found in a contract I recently reviewed for a landlord who wanted to change letting agents. He was unhappy with the service and described additional charges appearing month after month as “hidden fees”.
We receive a lot of enquiries like this, as landlords are attracted to our flat fee and transparent fees policy, only to find themselves locked in to their current agent. He asked us to look at the contract.
I used AI to help identify the relevant clauses in seconds, then checked the wording. The ordinary termination terms required at least 6 months’ written notice. There was also provision for continuing commission after termination if the tenant introduced by the agent remained, subject to the conditions in the contract.
In my view, that creates an unreasonable barrier for a landlord who wants to move because they are dissatisfied.
6 things to check before appointing a letting agent
Before appointing an agent, make sure you understand:
- The minimum contract period and notice required.
- Any exit charges or continuing commission.
- What the management fee actually includes.
- Which services attract additional charges.
- What expenditure the agent can authorise without consulting you.
- Your options if the service falls short.
Use AI to find the clauses, then check the wording
If you do not want to work through every page yourself, use an AI tool such as ChatGPT or Claude to highlight these points, with references to the original clauses. Then read those clauses and get anything unclear explained in writing before signing.
Letting agents should earn a landlord’s loyalty
This is why I am not opposed to tighter regulation of letting agents. Terms like these do little to build confidence in our industry.
Letting agents should earn a landlord’s loyalty through good service, transparent charges and fair terms.
Read the contract before you sign, not afterwards. Some letting agents are literally banking on you being too busy to do it.
