For landlords · 6 min read
Nine letting agent contract clauses worth reading twice
The headline commission rate is rarely what determines the cost of an agency agreement. The clauses that matter are continuing commission (which keeps you paying after you leave, while the agent's tenant stays), the tie-in period, sole selling rights, automatic renewal, renewal fees, minimum commission, deduction authority over rent received, the notice period, and who owns the tenancy paperwork if you leave. Read those nine before the percentage.
Frequently asked questions
What is a continuing commission clause in a letting agreement?
A term that keeps the agent earning commission while the tenant they introduced remains in the property, even after you end the agency. It is common and enforceable, and it means switching agents may not reduce your costs until that tenant leaves.
Can a letting agent renew my contract automatically?
Many agreements roll into a new term unless you give notice within a defined window. Check for an automatic renewal clause and diarise the window, or you can be committed for a further period without intending to be.
Can my agent instruct repairs without asking me?
Managed agreements usually grant deduction authority over rent received and allow the agent to instruct works. Look for a value ceiling above which your approval is required — if there is none, negotiate one in.
What documents should the agreement say I get back?
The tenancy agreement and renewals, deposit scheme certificate and prescribed information, gas safety, EPC and EICR certificates, the check-in inventory, rent and arrears history, and tenant contact details.