There are many reasons why you might want to change letting agent mid tenancy. Maybe your current agent isn’t providing a high standard of service, or they have increased their fees.
As a paying customer, you want to ensure that your agent is providing good value for your money. Just like any other type of service you pay for, if you’re not satisfied, you have the option to switch to a different provider of that service.
Whatever your reasons, if you want to switch your letting agent in Vauxhall or Wapping, this guide is for you.
Being a landlord in London can be confusing. There are over 170 Acts & Regulations to consider, so, how do you know if you are compliant?
It is a common misconception that you can’t switch agent mid tenancy. In most cases, landlords are able to switch letting agents mid tenancy. However, this depends on whether there is a contract in place that restricts you from doing this. You can check the Terms of Business document to see whether you have a fixed term period that you have to contractually remain with them.
The fixed period is usually a few months at the beginning of working with them, so once that fixed period is over, you are free to switch. This applies even if your tenancy agreement has not ended. The tenancy agreement is completely separate to the Terms of Business, so the tenancy contract doesn’t affect when you can change agents.
Appointing a new agent is probably easier than you think, so if you are not satisfied with your current agent, you should switch as soon you can. As long as you’re not still in a fixed period, you should contact other agents to check their fees and research their reputation and reviews.
If your agent has hiked their fees, hasn’t dealt with tenant issues effectively or failed to get the local market average for your rent, these are all good reasons to switch. Other reasons you might want to change letting agents is if they have struggled to quickly find tenants, leaving your property empty for long periods between tenancies, with no rent coming in. Or perhaps your letting agent has not been conducting regular property inspections to ensure your rented property is being kept in good condition.
Your letting agent should be taking all of the hard work out of managing a rental property, not adding to the work.
Want to be a more informed landlord? Before switching, revisit how to choose a letting agent and weigh up how much it costs to rent out a property with different providers.
Speak to potential new agents to find out how easy it will be to switch to them. Many agents will be prepared to take on the additional work, such as writing up new tenancy agreements (if required), changing the payment details and communicating with the tenant to introduce themselves.
This is the process to follow if you are switching agent mid tenancy:
The first step is to check the Terms of Business document from your existing agent. This will outline any fixed period that you are tied in with them. When you are choosing a new agent, you should also ask whether there is a fixed period to check you will have flexibility to switch in the future.
The Terms of Business should also include the notice period that you are required to give and whether there is a termination fee.
The service you receive from one agent to another can vary significantly, so doing some research will help you to find the best letting agent. Check online reviews, ask for recommendations and compare fees. The cheapest option might not always be the most cost-effective, if their service results in you losing money through void periods, for example.
When choosing a new agent, check how many properties they manage in your local area to get an idea of how much experience and knowledge they have of managing similar types of properties and tenants.
Provide written notice to your current letting agent to advise them that you are switching to a different agent. You are not required to provide a reason for your decision, but it will be helpful for them if you do.
They may try to rectify the issue that you have with them but generally, if you have had several issues that you have been unhappy with, it is probably better to move to a new agent.
Try to ensure that every communication is recorded in case there are any misunderstandings. Even if you have a discussion over the phone, send a follow up email to summarise the discussion, so you have everything in writing. Ask them to provide written confirmation that they have received the notice.
Once your existing agent has confirmed that they have received notice, you can instruct your new agent to start proceedings to manage the letting. Your letting agent may take care of all the communications on your behalf, in which case, you can just wait for them to provide an update when everything is switched over.
Either you or your new agent should get in touch with the tenants to explain the change. To ensure that your tenant does not worry about the switch of agents, you might want to share the reasons behind your decision, but you’re not required to do this.
To build good tenant relationships, open communication always helps, so if you can explain the reason, they will have a better understanding and will feel kept in the loop. Your new agent should contact the tenant to introduce themselves, provide contact details and send an updated tenancy agreement, if this is necessary.
You should request the previous letting agent to provide all copies of keys, and forward any documents such as gas safety certificates onto your new agent. You may also want to change the burglar alarm number for security purposes.
The last step is to confirm the end of the contract, including the date that the contract ends. Again, this should be done in writing, so you have an email trail of the confirmed date that the contract has ended.
This will help to ensure that any rent they have held on your behalf is claimed back based on the correct date and any responsibilities they had to fulfil before the end of the contract are completed.
A change in management is a good moment to review how you manage void properties and run through a house inspection checklist.
The termination fees for changing letting agents vary, and some agents will request four weeks or more of rent. The fee should be included in the Terms of Business document, but if you are no longer in a fixed period there will usually be no termination fees.
If you believe the agent has breached their contract in some way, you may be able to negotiate a waiver or reduction of fees. They will be looking to protect their reputation if they have not met expectations, especially if you can provide examples of this.
If you follow all the steps outlined above, switching agent can be a simple, stress free and hassle free experience. By choosing an experienced estate agent to switch to, they will be able to provide all the guidance you need and will usually do most of the work on your behalf.
If the original tenancy documents have been written between you and the tenant, there will be no need to provide a new one. However, if the tenancy agreement has the agent’s details included, a new tenancy agreement should be issued.
There are lots of good reasons for switching agents, so whether you are unhappy with the lack of communication, the number of void periods or any other reason, it is probably time to find a better service.
We can help make switching letting agents as straightforward as possible. If you are frustrated with your agent, our team at Gareth Whitelock has many years of experience managing private rented properties in Vauxhall, Surrey Quays and Waterloo. Contact us today to find out more about our property management services.
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Being a landlord in London can be confusing. How do you make sure you are compliant?