Agents and their commission from contractors...

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    Agents and their commission from contractors...

    I remember seeing somewhere that agents need to be transparent with the commission they earn from their contractors if we use them to undertake any works required..

    Is this now the case? I am just asking as the quotes my agent is getting for work is very very high.

    Get your own quotes to compare


      There may be a difference between commission and erm "appreciation" (dodgy term i made up)

      The first is where the agent does charge for the hassle of arranging works. Local to me, they tend to add a charge for 10% of the work value if over £200.

      Then there is "appreciation" where rates are inflated and the agent receives an "appreciation" from the contractor - either a brown envelope or perhaps free work if needed to agents premises.

      Local agents to me allow the LL to select their own contractors for the LA to use, or to take on the job of arranging repairs themselves.

      Having had experience of my builder accidentally damaging someone's property, the LA quoted £1,500 for a job my builder would do for £200 (at his expense).

      So, I think a lot of "appreciation" or brown envelopes get passed between many LAs and Contractors.

      Get your own quotes via your own Contractors and then challenge your LA.
      My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol


        Originally posted by Bounce View Post
        Is this now the case?
        Yes it is. Law of agency. Secret profit.

        See for instance this.

        For more than 120 years it has been a well established principle of law that the acceptance by an agent of a secret commission amounted to a breach of the agent’s duties to the principal, regardless of whether the agent acted innocently or not.
        There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.


          beware the VAT

          Agent gets non VAT registered trades person

          Adds 10 - 15%

          then adds 20% VAT

          A £100 job suddenly becomes £140


            My own agent, simply disperses money to their tradesman from the rent they pass on, so if they use a non-VAT registered tradesman, it's the non VAT amount I pay.
            They're never part of the transaction at all, simply paying out on my behalf.
            If the charge is more than is available in the rent, I pay the tradesman direct.

            If the agent is adding VAT, they're the supplier of the service / goods, so, normally they would try and avoid that.
            And output VAT with no corresponding input VAT is pointless to the agent, because it all goes in tax.

            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).


              Well Countryside certainly like their cut and some interesting comments.



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