Repairs done on the managed property

[orange_cat]

Hi everyone,

A new landlady here, so please excuse newbie (and probably dumb) questions.

Due to pandemic, my family and I temporarily reallocated outside the UK and we want to let our property while we are away.
We have decided to use a letting agency to advertise, find tenants, conducts all the checks and manage the property.

My question is what typically happens when repairs need to be made? Since we will be paying agency for management service, am I right to expect that tenants will be contacting them directly in such cases and that agency would be organising all of the works and issuing me the receipt for repairs? Would I need to get involved in those situations (as that would be problematic considering I will be remote) or would the agency sort everything on my behalf? Does the agency typically find the repairmen or can I ask them to contact the one I trust?

I'm aware that answers to all of those questions depend on the contract I would be signing with the letting agency, but I'd like to know what is a common practice in managed properties.

Many thanks!

[ash72]

Usually if you have given the property to full manage, then that's what they should do, and they should have a limit before they need authorisation from you above a certain amount, usually £250- £300 anything below this they don't need to bother you. If you have your own trusted tradesperson then I would cut out the agency as they will typically charge you 10-30% on any charges the tradesperson invoices them, so you would save on this.

[Hudson01]

As said above, they do everything as you would want them to do given you are thousands of miles away, but if you do ask them to use your tradespeople and they are not able to come quickly, then what ? It sometimes is best just to let them get on with it, but picking the right agency is very important, do a lot of research on who to choose as if you get it wrong .............

[jpkeates]

If the rent from the agent is being sent outside the UK, there are special tax rules to follow.
If the rent is being paid into a UK bank while you're not living here temporarily, that might still be OK.

The best people to advise on the quality of agents are tenants, so if you know anyone who rents their home, they might be able to give some insight.
Alternatively, see what happens if you call an agent looking to rent a property to live in, how they treat potential tenants is an interesting insight into the type of company that they are.

[doobrey]

An agent which provides full management should arrange for necessary maintenance. The competence and efficiency with which it is done, however, is not guaranteed.

I have never been charged a disclosed mark-up on maintenance by an agent. And if one is added to the bill without being disclosed, this is unlawful.

If you have got a trusted tradesman then yes I would propose them. It would be unusual for an agent to object to this. They will be used to it, I'm sure.

[jpkeates]

I have never been charged a disclosed mark-up on maintenance by an agent. And if one is added to the bill without being disclosed, this is unlawful.

There are two ways that agents can provide maintenance services.
One is that they provide the service and are the supplier - although they subcontract the actual work.
In that case a mark up or concealed commission would be legal.

The other basis is that they simply pay contractors on the landlord's behalf and the suppliers' charges are simply passed on (usually by being deducted from the rent being processed by the agent). In that case, a concealed commission would be unlawful.

Being realistic, the saving achieved by the second method (it avoids VAT in the majority of transactions for me, for example), would allow a smart agent to conceal a mark up or commission without the landlord being particularly disadvantaged.
And suppliers would typically charge a small landlord more for services (if not necessarily parts) than an agent who provides them a greater volume of work.

As long as you're happy with the prices you're paying...

[DPT57]

You should be aware that it can take many months, even up to a year to evict a tenant who has no-where else to go or who simply digs in. Therefore if your move is temporary and you will need to return to your property within a set time period, you may be better off just leaving it empty.

[Codger]

I agree with dpt. For up to a year away leave it empty no argument. If you do not care much for your home maybe let it if you are away longer but do not expect to get it back at your request.

[jpkeates]

If it's your home and you give the tenant the correct information and notice before they move in, possession should be simpler.
Section 8, ground 1 isn't something that a tenant can easily fight against.

[DPT57]

If it's your home and you give the tenant the correct information and notice before they move in, possession should be simpler.
Section 8, ground 1 isn't something that a tenant can easily fight against.

That's true, but the landlord would still have to get a possession order and bailiffs if the tenant declines to leave and as said, that can take many months.