When ending a service agreement, landlords will be charged a £120 service termination fee (including VAT) to cover administration costs. This applies to all customers ending their service from 1 August 2024 onwards.
Updated 18 April 2025
From 1 August 2024, a fee of £120 (including VAT) is payable by any landlord ending their service agreement. This covers administrative work associated with closing a tenancy and/or service plan agreement.
This applies to all customers whose service plan ends, or who choose to end their service with us, from this date onwards.
The fee does not apply to landlords who re-advertise and continue their subscription, but they will be subject to our standard £149 listing fee.
Why are we introducing this fee?
Ending a service agreement involves several time-consuming steps, including:
- Tenant communication – Handling all tenant queries related to deposits, payments, and responsibilities.
- Deposit transfer – Facilitating the secure return or transfer of the deposit.
- Account finalisation – Reconciling rent balances, service fees, and producing the final account statement.
These tasks require support from multiple departments, and the fee reflects the actual cost of delivering this service. This helps us maintain a consistent, professional standard during the end-of-tenancy process.
Why is the fee £120?
Originally set at £240, the termination fee was reviewed and reduced to £120 (inc. VAT) on 18 April 2025, based on feedback and a thorough review of our internal processes. The updated fee reflects the average administrative cost while keeping it fair and proportionate.
Does the fee apply per agreement or per account?
The fee is applied per service agreement, not per customer account. If you have multiple properties with separate tenancy agreements, each is treated individually and may be subject to the fee.
If I start a new tenancy after ending one, do I still pay the fee?
Yes. The termination fee applies when an existing tenancy or agreement ends, regardless of whether a new tenancy starts afterwards.
What’s included in the service at the point of termination?
This fee supports:
- Final support from your account manager
- Deposit handling and closure
- Tenant and landlord account wrap-up
- Financial reconciliation and reporting
How is payment taken, and what methods are accepted?
The fee is typically deducted from your final rent payment. If there is a shortfall, we’ll request the balance by debit card, credit card, or bank transfer.
Will this appear on my final statement?
Yes. Your final statement will clearly show the termination fee, any deductions, and any outstanding balance due.
If you have any questions about this policy, please get in touch with our support team at support@lettingaproperty.com.