Changing letting agents during a tenancy

Having issues with your letting agents, or just fancy a change? You might be wondering whether it’s possible to change letting agents during a tenancy. The short answer is yes, it’s usually possible and legal.

In this article, we’ll discuss the answer in more detail, covering why you might choose to change letting agents, how to choose a new one and the process to follow.

Can you change letting agents during a tenancy?

Yes, in most cases you can change letting agents during a tenancy. It’s not quite as simple as that, though. It helps to remember that there are two separate relationships here: one between you and your tenant (the tenancy agreement) and one between you and your agent (the management/agency agreement). When you switch agents, you’re changing who manages the property on your behalf, not replacing the tenancy itself.

The tenant’s contract is with you as the landlord, not with the letting agent. So, as long as the tenancy agreement stays in place and the tenant’s rights are protected, you’re generally free to appoint a different agent to act for you.

If you’re going to potentially face any limitations, it will be from your contract with the current agent. You might be tied by notice periods, termination clauses and any ongoing fees that they might try to charge if the same tenant remains in the property. As long as you follow that contract, line up a new agent properly and keep tenants informed, changing letting agents during a tenancy is fairly straightforward and normal.

Check out our ultimate guide to using a letting agent.

Why might a landlord change letting agents during a tenancy?

There are a number of valid reasons why a landlord might decide that changing letting agents during a tenancy is the right idea for them. Examples of these reasons could include:

• Poor communication or slow response to repairs
• Lack of professionalism
• Concerns about compliance or legal standards
• Hidden or rising fees, meaning poor value for money
• Wanting a different approach to tenant-finding
• Issues with rent collection.

A step-by-step guide to changing letting agents during a tenancy

If you are serious about changing letting agents during a tenancy, here is a step-by-step guide on how to approach the situation. On average, this process can take 4-6 weeks to complete.

Review your current agency agreement

Because your contract and agreement are likely to be the only things that potentially hold you back, the first step is to review them in detail to work out the situation that you are in. Take a look at the notice period and how notice must be given, along with any termination clauses that stipulate when and how you can end the contract.

You’ll also want to check if you’ll be hit with any ongoing fees, even if another agent takes over. There may also be clauses about tenant ‘ownership’ or renewal fees to take note of before you progress with taking any action.

Choosing a new letting agent

Next, it’s time to choose a new letting agent. If you know what you don’t want in a letting agent, as per your experience with your current agent, this shouldn’t be too complicated. However, here’s some guidance on what to look for in a replacement:

Firstly, look for a letting agent that has experience with your type of property, whether that’s a single-let, HMO, student let or similar. You’ll also want to check that they are members of professional bodies and look for trust signals on their website, such as online reviews. If you know other landlords in your area, it’s also worth asking them for recommendations too. Lastly, look for a letting agent who offers a clear fee structure with no surprises.

When enquiring with your new chosen letting agent, explain your situation and ask them to confirm that they would be happy to take over an existing tenancy, rather than simply take on a new let. Agree in advance what they will handle – do you want a full management service or just rent collection only, for example?

Find out more about what a letting agent does for a landlord.

Manage the handover to ensure no gap in management

Before you serve notice to your current letting agent, agree on a handover plan with the new agent. It’s important to make sure that there is no gap in management and that you orchestrate a smooth transition with overlap if possible.

To agree on a handover plan with the new agent, supply your inventory and schedule of condition and all your safety certificates (gas, EICR, EPC, fire safety and HMO licence if applicable), deposit details and the scheme used, the rent schedule and payment method and the keys and access arrangements.

It’s time to serve notice!

Once you’ve followed the previous steps, you’re in a good place to serve notice on your current agent. You’ll find out how to do this within your contract. There’s no need to use the opportunity to offload all your thoughts and feelings – just keep it professional and factual.

When serving notice, ask your current agent to confirm the final date they will manage the property and what they will provide for the handover, such as documents, keys, deposit information and tenant files.

Update your tenants

It’s important that you let your tenants know about the change in letting agents. You can reassure them that not a lot will change for them, particularly in terms of their tenancy agreement and their tenant rights.

You just need to explain who the new agent is and when they are due to take over, how to now report any repairs and emergencies, and any changes regarding where and how they pay rent.

To minimise disruption for tenants, keep repairs and communication running as normal throughout the switch. If the switch will result in any changes to systems such as portals and accounts, make sure you provide clear instructions on using these new systems.

To tie up the transition, you could ask the new letting agent to introduce themselves promptly to your tenants and confirm that they are aware of any ongoing issues or promised works.

Changing letting agents during a tenancy might feel daunting, but it’s possible and normal as long as you follow your agency contract and keep your tenants informed. Don’t forget that alongside good management, you also need solid protection in place in the form of comprehensive landlord insurance. The right cover can help shield you from the financial impact of issues such as property damage, loss of rent and liability claims – no matter who your letting agent is.

Speak to us at CIA Landlord Insurance today for an up-to-date quote and make sure your policy is working well for you. Request a callback or give us a call on 01788 818 670.