fully managed fees - is paying part paid upfront normal?

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    fully managed fees - is paying part paid upfront normal?

    after a long term tenant left i have decided with the propert being 300 miles away to move to a managing agent. they are looking for new tenants, but is it normal for the 'let only' portion to be paid to the agent upfront, rather than monthly? plus is £420 for the contract sound reasonable? seems a lot to me, but i'm not going to do it myself.

    thanks


    #2
    What an agent gets paid for collecting rent is commission and should depend on results, that is actually collecting rent.

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      #3
      But is it normal to pay the majority of the annual fee upfront, i.e. on a 12% managed contract they claim 8% of the whole year upfront as that would be the fee if it were let only and only 4% each month going forward?

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        #4
        The last time I used an agent (Jan 2019), I paid £480 for 'tenant find only' and then self-managed. As the agent will be receiving an ongoing income from you (commission), then yes, I think £420 is a bit steep.

        As Lawcruncher said, the agent's percentage (12% is high, by the way) is a commission, paid from your rent, in exchange for managing the property and collecting the rent. I don't personally feel any of it should be up front, just as you wouldn't pay your window cleaner most of his annual 'fee' to represent the windows he's going to clean in the next year. However, other forum members might disagree with me and offer reasons why.

        Perhaps the tenant fees ban has hit the agent hard and they're trying to get as much money in as possible. If you've not already signed the agreement, I'd seriously consider looking for another agent. Use online reviews as a guide for which one to choose.

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          #5
          Paying the commission upfront is common.
          But they might also negotiate.

          A fee for a new tenant is also common.
          I pay nearly half a month's rent for a new tenant (how much the fees are vary regionally).

          Also - the agent tends to want a 12 month contract if they're being paid in advance.
          Given that you (and the agent) don't know much about the tenant, it's probably in your interest to want a six month initial term,

          And, when the agent makes a helpful suggestion, also not a 12 month term with a six month break.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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