Management fees.

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    Management fees.

    We let and have been letting property for over thirty years.

    We used an agent for a time to oversee in and out's, repairs and rent collection.

    However, the prices charged by his various contractors for repairs, bits of plumbing and electrical work were very much on the high side. Whether they included a commission for the ahent, we shall never know. He charged 10% for his services plus a charge each time he installed a noew tenant or said goodby to an old one for us.
    Regardless of whether a tenant had paid his monthly rent, the agent still wanted his full fee and was not on the ball on chasing back rent. After the twelve month period we had signed up to, we declined further services.

    We never charged the tenants for his services, but off set them
    against tax.

    We have one property - a two bedroom flat that is over a shop. The
    freehold holder just used to send us an invoice each year for building insurance and ground rent. Now he is using a land agent - without
    any direct communication to us.
    We have just received an invoice from the agent for ground rent,
    building insurance AND a service charge invoice for £150.00p for the
    privilege.
    Surely the choice of the freehold holder to use an agent is his choice and at his cost not ours. This must be a tax deductible cost.
    Am I obliged to pay this management fee?

    Regards

    Calvados

    #2
    The answer must surely be in your lease. The question will get better answers if it is posted in the leasehold section.

    Comment


      #3
      Dear Snorkerz,

      Thank you for prompt reply.

      I will copy to leasehold as you advise.

      When the freehold owner was collecting ground rent directly, he did not charge to send us an invoice for ground rent or building insurance, only some years later were the service charges applied by the newly appointed agent.

      Regards

      Calvados

      Comment


        #4
        Management fees introduced after several years

        Management fees.
        We let and have been letting property for over thirty years.

        We used an agent for a time to oversee in and out's, repairs and rent collection.

        However, the prices charged by his various contractors for repairs, bits of plumbing and electrical work were very much on the high side. Whether they included a commission for the ahent, we shall never know. He charged 10% for his services plus a charge each time he installed a noew tenant or said goodby to an old one for us.
        Regardless of whether a tenant had paid his monthly rent, the agent still wanted his full fee and was not on the ball on chasing back rent. After the twelve month period we had signed up to, we declined further services.

        We never charged the tenants for his services, but off set them
        against tax.

        We have one property - a two bedroom flat that is over a shop. The
        freehold holder just used to send us an invoice each year for building insurance and ground rent. Now he is using a land agent - without
        any direct communication to us.
        We have just received an invoice from the agent for ground rent,
        building insurance AND a service charge invoice for £150.00p for the
        privilege.
        Surely the choice of the freehold holder to use an agent is his choice and at his cost not ours. This must be a tax deductible cost.
        Am I obliged to pay this management fee?

        Regards

        Calvados

        Comment


          #5
          Depends on the lease.
          Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

          Comment


            #6
            I have asked the Mod to please merge this thread with the new one.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              Two threads merged.
              I also post as Mars_Mug when not moderating

              Comment

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