Estate Agent enters letting market and thinks up a whole new fee.

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    Estate Agent enters letting market and thinks up a whole new fee.

    Call me a nerd but I do closely watch sales/lettings in my area.

    Local estate agent (franchise) has decided to branch out into the lettings field recently.

    They've thought up a whole new charge for Ts (well I've never seen it before).

    Mandatory £10 per month extra to the LA for their 24 hour call out service.

    I hope they've done research into lettings since I last had contact with them.


    ___________________________


    In other news, LL next door has been repossessed although all might not be lost for them. Last house for sale on this road sold in two weeks (within last 6 months) so hopefully they may claw back something.

    It's really bizarre my area atm. Lettings has slumped but houses sell. Quite strange.
    I'm a good tenant with great landlords
    I'm also a living, breathing, fully cooked female.

    #2
    Originally posted by Brb View Post
    It's really bizarre my area atm. Lettings has slumped but houses sell. Quite strange.
    Where do you live?

    Comment


      #3
      Originally posted by Mrs Mug View Post
      Where do you live?
      Very small very old town* in Northamptonshire. Surrounding towns are similar to the rest of country (sales slump, rental surge). I don't know if it's the historical element of the town at play but surely not.

      *When I say old. We are in domesday book as same size as London and was up until a few years ago still labelled a village.
      I'm a good tenant with great landlords
      I'm also a living, breathing, fully cooked female.

      Comment


        #4
        Have they just built a lot of new flats in your town?

        From what I've observed over the past few years, developers built loads of flats, which then can't be sold on, so they end up on the rental market. This then lowers the prices in the rental market.

        Comment


          #5
          No. It's quite hard (apparently) to get planning permission here. There has been a couple of conversions of old buildings for flats but that was over twenty years ago. In the past ten years there has been three new-build developments (two on outskirts of the town and the other a conversion of a pub and it's car park) but they have been approx 80 properties in total. There was a proposal for two 150 sites but they didn't get approved.

          We nearly got a supermarket but that was denied too. Alas I still have to travel to purchase decent coffee/food.
          I'm a good tenant with great landlords
          I'm also a living, breathing, fully cooked female.

          Comment


            #6
            Originally posted by Brb View Post
            Mandatory £10 per month extra to the LA for their 24 hour call out service.
            Isn't that what the landlord pays for - out of the tenants rent?

            I propose

            THRESHOLD CHARGE - £15 fee for entering the agents office; and closely related
            FRONT DOOR FEE - 69p every time tenant uses front door on rental property - subject to 64% surcharge if property not let at the time.

            Comment


              #7
              Originally posted by Snorkerz View Post
              Isn't that what the landlord pays for - out of the tenants rent?

              I propose

              THRESHOLD CHARGE - £15 fee for entering the agents office; and closely related
              FRONT DOOR FEE - 69p every time tenant uses front door on rental property - subject to 64% surcharge if property not let at the time.
              I'll use the window lol
              I'm a good tenant with great landlords
              I'm also a living, breathing, fully cooked female.

              Comment


                #8
                Originally posted by Brb View Post
                I'll use the window lol
                I had a lessee who refused to pay service charges for the common areas as, in order to avoid liability, he used a ladder to get to his first floor flat - his logic " not using them, not paying for them" .
                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


                  #9
                  Originally posted by leaseholdanswers View Post
                  I had a lessee who refused to pay service charges for the common areas as, in order to avoid liability, he used a ladder to get to his first floor flat - his logic " not using them, not paying for them" .
                  LOL, ppl fail to surprise me. Wonder if he made his guests enter his flat the same way ?
                  I'm a good tenant with great landlords
                  I'm also a living, breathing, fully cooked female.

                  Comment


                    #10
                    Originally posted by Brb View Post
                    It's really bizarre my area atm. Lettings has slumped but houses sell. Quite strange.
                    It's not only your area. Where I'm looking to buy it seems to me that the lettings market has collapsed, mind you that is partly because the one large source of tennannts has had budget cuts applied to operations so the number of people looking has dried up. I will know more in a few weeks, but it's not looking too good for renting out my property at the moment. It's becomming very clear to me that 'knowing your local market' is important, national 'trends' do not necessarily apply every where!!!!

                    Comment


                      #11
                      I think this points up that all the "buy to let will save your backside and your pension again" hype we've seen from Sunday Papers recently is, to be kind, overoptimistic.

                      They haven't understood just how many (real or potential after HA 2004) regulatory monkeys are on the back of the landlord, and how much stuff is driven by politico-ranters shouting to each other.

                      Like the cuts, much of the pain has been shouted about but not arrived yet.

                      Here I've noticed a number of *attractive* properties selling very quickly, but only after price cuts of 10-15% over their advertised-for-6-months-plus prices set at desire levels of a couple of years earlier - eg 185k->150k , 175k->155k asking price which equals £149k selling price, for respectively a 3 (potentially 4 bed semi) and a tired and somewhat noisy 4 bed detached property needing a certain amount spending on them to make nice homes.

                      The first is brilliantly positioned; the second is a 'beautifully extended in 1973' estate property for someone who would have bought a semi 5 years ago and will spend 5 years updating it themselves (would cost LL £35k to do).

                      The prices dropped to are *nearly* investor prices for people wanting low - ie 6% - returns. Both of the above would rent at perhaps £700-£750 a month reliably.

                      Reality is cracking through, here. The next ones to go will be new house prices; I don't think that up here we have quite such a massive-land-bank-price overhang from 5 years ago, or £40k per house Section 106 agreements which can't be unwound.

                      The problem then becomes finance availability and risk-aversion.

                      I wonder how much of the 20% forecast increase in the PRS is going to be financially viable.

                      ML
                      Refer Mad Regulators to Arkell vs Pressdram.

                      Comment


                        #12
                        If the bottom is dropping out of the rental market in some areas for whatever reason(s) then rents must come down. The same LLs who are squealing about it now were no doubt all too happy to rake in the profits when rents were inflated and mortgage interest rates low.

                        I have even less sympathy for mortgage-free owners of London rental properties who have been benefitting from the high HB rates paid to large families but who are are now losing their tenants to less affluent areas as the new HB rates start to bite.

                        It's market forces, innit.
                        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                        Comment


                          #13
                          Originally posted by mind the gap View Post
                          It's market forces, innit.
                          That's it mtg, come over to the dark side .....!
                          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


                            #14
                            Originally posted by leaseholdanswers View Post
                            That's it mtg, come over to the dark side .....!
                            Oh, I think you'll find that as far as greedy fatcat LLs go, I have been consistent in my views from the outset!
                            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                            Comment


                              #15
                              But being a greedy fatcat landlord is my aim in life I haven't got there yet.

                              I was tempted by LHAs 'Steak Bake' post the other day, but as mine was below ambient temperature it wasn't that appetising. Had it been yummy I might have developed a liking and at least got the 'fat' bit. I wonder if Greggs would do a "Moggie Bake", I could get fat on cats, that's almost the same.

                              Time for a lay down, I think.

                              Comment

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