Letting Agent "administration" fees

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    Letting Agent "administration" fees

    Hi All,

    i just wanted get some general feedback on the appropriate cost for letting agent "administration" fees and what these are actually suppose to include?

    I have just come to relist my property after my last tenant left, and i have been advised that the letting agent's "fees" are charged to the landlord (i was aware there had been a recent ban on tenant fees, but these costs appear to have just been transferred to the landlord on top of what you already pay them).

    So as well as a 9% a month charge for finding a tenant (not managing the property - just collecting the rent), this letting agent also wants to charge £400 for administration fees. When i queried what this is for, he seemed unable to answer other than - reference checks. other things such as 'inventory check' are all additional extras, so personally i think this charge is totally ridiculous.

    Would be interested to get others thoughts.

    #2
    I've got to ask, why are you paying 9% for someone to have the rent transferred into their account, it costs nothing to have it transferred into your own account.
    I use an agent to find the tenants, but that's all, normally just a flat fee that includes the relevant checks etc.
    But as you say, someone has to pay now that tenants don't have to.
    I do know landlords that have just factored these costs into an increase rental charge.

    Comment


      #3
      I have a number of properties, so it's hard to compare rates, but I pay less than that (with VAT added) for full management.
      Which, most of the time is simply collecting the rent.

      For tenant find I pay an additional half month's rent (which would be about £350-400).

      I find the notion of paying a potentially inlimited amount of money simply for tenant find an odd way of doing business.
      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).

      Comment


        #4
        weirdfish,

        because that is their minimum fee. their full management fee is 14%+VAT.

        my property is based in London, where letting agent fees seem to be much more inflated.

        Comment


          #5
          jpkeates,

          fully agree, but its the same for all letting agents in London. they all charge a monthly % fee - even for just finding a tenant. obscene, particularly now with a further 'administration' charge as well.

          Comment


            #6
            The London property market is simply irrational.
            Not living or doing business there is one of the things I should remember to give thanks for daily.
            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).

            Comment


              #7
              But you said that they charge you 9% per month just to collect the rent, why don't you let them find the tenant and then have the rent paid directly to you?

              Comment


                #8
                Get rid of the agent, they are just ripping you off.

                Use OpenRent to find your next tenant. They have a rent collection service that's free (if you feel you need that), although I have never used this myself, so have no experience of it. They will chase unpaid rent, but I imagine this service won't be free for the long term.

                If more landlords (who were able to) found their own tenants and self-managed, rip-off agents would either be forced to change or go out of business.

                Comment


                  #9
                  I would suggest carefully selecting a new letting agent for tenant-find (including referencing, R2R, etc) for a one-off fee.
                  Do the rounds, tell them what you want, if they say no, then walk away, if they say yes, then get price and terms, then compare offerings, get a preferred offering, negotiate on terms/offerings if necessary (ensure that you have right to assess and approve an applicant before a tenancy can be granted).

                  I use tenant-find service for less than 1 month rent (inc VAT) and the agent does not have authority to agree a tenancy without my consent, nor to sign the tenancy agreement.

                  Comment

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