Don’t Let Unfair Exit Fees Trap You: How to Terminate a Letting Agent’s Contract Without Paying Up

If you're being hit with hefty exit fees from your letting agent, you’re not alone—and the good news is, many of these fees may be legally unenforceable, especially when agents fail to deliver their promised service.

Why Exit Fees Can Be Unenforceable

1. Unfair Terms Are Void Under Consumer Law Under the Unfair Terms in Consumer Contracts Regulations 1999 and the Consumer Rights Act 2015, terms that create a significant imbalance or are overly burdensome can be deemed unfair—and therefore unenforceable—even if they've been signed. Courts and consumer enforcers will strike them down The Landlord Law BlogThe Independent Landlord.

2. No Service, No Fee Justification If your agent is no longer providing services—perhaps tenants are long-term or you're now self-managing—charging a lengthy notice period or ongoing commission often lacks a fair basis. Such "evergreen" clauses demanding fees while having done little or nothing can be challenged as unreasonable The Landlord Law BlogLandlordZONE.

3. Material Breach Gives You Leverage When agents fail to meet their obligations—like ignoring rights-to-rent checks, failing to provide guidance, or delivering poor tenant management—that’s a material breach. This can render the contract voidable and entitles landlords to rescind it without owing exit fees OpenRent Landlord & Tenant ForumJustAnswer.

Real Experiences from Landlords

Many landlords have taken to forums and forums like Reddit to share their frustrations:

“Termination clause may be unenforceable … especially as I am a non-commercial landlord.”— The Landlord Law Blog

“The estate agent neglected Right to Rent checks … contract expects commission while agent’s basic duties were unfulfilled.”— OpenRent Landlord & Tenant Forum

These voices reflect a common sentiment: agents pushing exit fees without merit are often on shaky legal ground.

How to Respond: A Landlord’s Action Plan

1. Document the Failures Keep detailed records of correspondence showing when contractual services weren’t delivered—delays, missing documentation, ignored tenant issues, etc. This supports a claim of material breach.

   
   

2. Formally Notify the Agent Write saying you’re terminating the agreement due to breach of contract and that you consider any exit fee unenforceable. Offer a reasonable goodwill settlement—think one or two months of fees—not their entire notice clause.

   
   

3. Escalate to the Redress Scheme All letting agents must belong to a government-approved property redress scheme (such as The Property Ombudsman or the Property Redress Scheme). If your agent refuses to budge, complain through the scheme—you don't need extra paperwork The Landlord Law BlogProperty118GOV.UK.

   
   

4. Pursue Further Action if Needed If the redress outcome is unsatisfactory, you can escalate to Trading Standards or the First-tier Tribunal (Property Chamber). Courts have overturned unfair or unreasonable termination demands before JustAnswerUK Landlord Forum / Life.
   

Summary: Why You May Not Owe That Exit Fee

Reason	Why It Matters
Unfair Term	Consumer law can void exit clauses that are imbalanced or excessive.
Agent Breach	No service delivered? That supports contesting or voiding the fee.
Redress Options	Formal complaints often resolve disputes without court involvement.
Legal Routes Available	Escalation to tribunal or trading standards may be needed—but can be effective.

Final Word

You aren’t bound to unfair exit fees—especially when your agent hasn’t held up their end of the agreement. Armed with evidence, a clear complaint, and knowledge of your rights, you can protect your interests and terminate the contract on fair terms.

If you are unhappy with your existing letting agency, I would recommend to firstly email them letting them know why. If you wish to move-away from them, again best to explain the reason why and request copies of the information needed:

1. Copy of the Tenancy Agreement, Inventory and Tenancy Deposit Certificate

2. Copies of your safety certificates such as Gas, PAT, EICR and Legionella

3. A copy of the rental statement

   
   

   If you are then looking for a new letting agency here in Edinburgh, feel free to complete our Management Transfer Form here or drop me a WhatsApp message on +447304058040 if you have any questions.