Lettings Agents Mark Up on Contractor Charges

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    Lettings Agents Mark Up on Contractor Charges

    Hi...I've just registered on this website today as I have a dilemma. On Saturday I received a call at my house from a guy who had undertaken refurbishment work on a rental property I have. He was commissioned by the lettings agent to do this work directly and he invoiced them similarly. He showed me his invoice to the lettings agents which was £2,040. The cost, however, taken from the lettings agent against my next statement was £2,237. Can lettings agents arbitarily mark up a contractors invoice and effectively charge me extra?

    #2
    What does it say in your management contract? If there is no provision for them to charge a percentage fee for work they arrange then I would guess they have no right to do so.
    I'm not a lawyer, what I say is the truth as I understand it. I offer no guarantee except good intentions.

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      #3
      Thanks for that. I've checked Management Agreement and it makes no mention of how contractors costs are passsed on to the land lord.

      The poor guy hasn't be paid by this agent and I'm mightily cheesed off that they have added £200 to his bill.

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        #4
        I'd ask them to tell you on what basis they are adding the extra charge... if they can't come up with a good explanation then probably time to find a new agent.

        Might be an idea to have a look back at any work they've charged you for in the past too, contact the tradesmen and ask them to confirm the invoice amount.

        If they haven't paid him and are trying to fleece you maybe they are in financial difficulties?
        I'm not a lawyer, what I say is the truth as I understand it. I offer no guarantee except good intentions.

        Comment


          #5
          Does sound like they are trying to rip you off, would you have found out the true cost if the guy hadn't have called round?
          "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

          What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

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            #6
            Good point. I had some damage to the property through a leak and they said they'd handle the insurance claim. I found out they claimed for about £1,000 more than what was invoiced. I've never been given any invoices from the tradesmen of other works, just taken direct from my statement with only their own letterheaded invoice attached.

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              #7
              No I wouldn't....the guy is a really nice bloke and the only reason he knew where I lived was because he dropped off some items from the rental property when I happened to be passing when he was working on it. They only ever provided their own, not the contractors' , invoices when they sent my statement through.

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                #8
                If they don't have a good explanation I should ask to see the original invoices if I were you. They should still have any going back 6 years for tax purposes.

                If they say no and don't offer any good explanations then it might be fair to assume they have been adding the same mark-up to all their invoices for all their clients, in which case if they aren't in financial difficulties now they may well be soon .

                Wonder what they are doing with tenants deposits.
                I'm not a lawyer, what I say is the truth as I understand it. I offer no guarantee except good intentions.

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                  #9
                  Nice one! Thanks for that. Much apprciated!!

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                    #10
                    On the issue of tenants' deposits this contractor informed me that the lettings agent goes in at the end of the tenancy and looks for everyting and anything not to pay back the deposit, citing such things as carpets needing industrial cleaning. When the tenant objects the agent threatens them we heavy handed legal action intimidating them to back down. They then inform the landlord that there is all this remedial work to be done, charges it back against their statement. Needless to say, the contractor has gone back into the property later and sees that none of the work has been undertaken and the agent has pocketed the deposit.

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                      #11
                      Originally posted by Mersey Lord View Post
                      Can lettings agents arbitarily mark up a contractors invoice and effectively charge me extra?
                      No it's illegal to make a "secret profit" and they cannot 'mark-up' without your prior approval. Demand a refund.
                      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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                        #12
                        I'd both demand a refund, fire the agent & report to any trade body (eg ARLA) and Trading standards..

                        Hope things improve in future: Cheers!
                        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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