Letting agent, which service to choose?
Discussion
Hello, I currently have my flat available to rent after my partner and I moved to a house in the country not far away.
I've never let a property before and took advice from the letting agent who explained the many services they offer to me. To find a tenant they charge 75% + vat of the first month's rent. They then charge 5% + vat per month thereafter for a rent collection fee or 10% + vat per month for a fully managed fee.
I was initially tempted by the fully managed service as it's my first time and I'd like to find my feet first. I've since found that on top of the fully managed fee they charge extra to do an inventory and energy certificate, then they want a small sum of money for further repairs they can use without asking me.
Ive grown worried about this, surely I'm just paying them to spend my money? Coupled with the fact they have no incentive to get the best quote and I would assume developed symbiotic relationships with certain tradesmen they regularly use I feel it's not a great service.
I still live close and have many trustworthy neighbours close by. Should I just self manage or am I missing something?
Any help appreciated.
I've never let a property before and took advice from the letting agent who explained the many services they offer to me. To find a tenant they charge 75% + vat of the first month's rent. They then charge 5% + vat per month thereafter for a rent collection fee or 10% + vat per month for a fully managed fee.
I was initially tempted by the fully managed service as it's my first time and I'd like to find my feet first. I've since found that on top of the fully managed fee they charge extra to do an inventory and energy certificate, then they want a small sum of money for further repairs they can use without asking me.
Ive grown worried about this, surely I'm just paying them to spend my money? Coupled with the fact they have no incentive to get the best quote and I would assume developed symbiotic relationships with certain tradesmen they regularly use I feel it's not a great service.
I still live close and have many trustworthy neighbours close by. Should I just self manage or am I missing something?
Any help appreciated.
I don't know where the property is, but I would guess the South East? I have my own residential block management business and am extending the lettings side, so this post interests me.
The general rule for lettings fees for the owner of the property is 50% of the first month's rent, not 75%. 5% for rent collection is fair, 10% to fully manage equally so.
As part of our tenant referencing we offer free landlord's rent insurance which adds to peace of mind.
We charge the tenant the fee to compile the inventory as this protects them as much as the landlord. Ditto the ability to establish a maximum agreed fee to spend without prior permission - this is usually around £100 and is for emergencies (plumbing etc). If you are wary that the agent is whacking mark up on repairs using their own tradesmen you can also specify that your own tradesmen/quotes are used. It all depends on how involved you want to be.
I believe on being flexible with clients - this is how you retain them!
I hope this helps.
The general rule for lettings fees for the owner of the property is 50% of the first month's rent, not 75%. 5% for rent collection is fair, 10% to fully manage equally so.
As part of our tenant referencing we offer free landlord's rent insurance which adds to peace of mind.
We charge the tenant the fee to compile the inventory as this protects them as much as the landlord. Ditto the ability to establish a maximum agreed fee to spend without prior permission - this is usually around £100 and is for emergencies (plumbing etc). If you are wary that the agent is whacking mark up on repairs using their own tradesmen you can also specify that your own tradesmen/quotes are used. It all depends on how involved you want to be.
I believe on being flexible with clients - this is how you retain them!
I hope this helps.
Ok, I can give you both 'poacher' and 'gamekeeper' answers to this question!
I've been a private landlord of my own 6 properties since 2000.
A friend and I also set up a residential letting agency a few years back...
We did very well out of nervous / lazy landlords who didn't want to be involved with their properties, the tenants therein, or problems / issues like broken fixtures and fittings, or central heating downers.
The bottom line is - if you want to abdicate total responsibility of your property, but are prepared to pay through the nose for that, then complete management is the way to go.
If you want to, and are happy to have a dialogue with your tenants, even when things go wrong, then just get an introduction only service from your agency. Or, if you're feeling braver - let it yourself through one of many websites.
I've been a private landlord of my own 6 properties since 2000.
A friend and I also set up a residential letting agency a few years back...
We did very well out of nervous / lazy landlords who didn't want to be involved with their properties, the tenants therein, or problems / issues like broken fixtures and fittings, or central heating downers.
The bottom line is - if you want to abdicate total responsibility of your property, but are prepared to pay through the nose for that, then complete management is the way to go.
If you want to, and are happy to have a dialogue with your tenants, even when things go wrong, then just get an introduction only service from your agency. Or, if you're feeling braver - let it yourself through one of many websites.
Dave, thanks for your reply. The property's in Wolverhampton so it couldn't be further from the south easy, culturally rather than geographically!
It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
Ray Luxury-Yacht said:
Ok, I can give you both 'poacher' and 'gamekeeper' answers to this question!
I've been a private landlord of my own 6 properties since 2000.
A friend and I also set up a residential letting agency a few years back...
We did very well out of nervous / lazy landlords who didn't want to be involved with their properties, the tenants therein, or problems / issues like broken fixtures and fittings, or central heating downers.
The bottom line is - if you want to abdicate total responsibility of your property, but are prepared to pay through the nose for that, then complete management is the way to go.
If you want to, and are happy to have a dialogue with your tenants, even when things go wrong, then just get an introduction only service from your agency. Or, if you're feeling braver - let it yourself through one of many websites.
Thanks Ray, I'd e happy to have a relationship with a tenant and I'd be happy to maintain the property myself, I'd just be worried about the legal aspects should a tenant not ay or trash the place but it appears the la wouldn't really help in that situation either. I've been a private landlord of my own 6 properties since 2000.
A friend and I also set up a residential letting agency a few years back...
We did very well out of nervous / lazy landlords who didn't want to be involved with their properties, the tenants therein, or problems / issues like broken fixtures and fittings, or central heating downers.
The bottom line is - if you want to abdicate total responsibility of your property, but are prepared to pay through the nose for that, then complete management is the way to go.
If you want to, and are happy to have a dialogue with your tenants, even when things go wrong, then just get an introduction only service from your agency. Or, if you're feeling braver - let it yourself through one of many websites.
sebdangerfield said:
Dave, thanks for your reply. The property's in Wolverhampton so it couldn't be further from the south easy, culturally rather than geographically!
It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
You can get landlord's rent insurance cover if that worries you. It may be a better way to spend your money than £30pm on basically on line banking!It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
Try self management and see how you get on. You may get tenants who prove to be very 'needy' and drive you mad - you may not. Make sure you get a decent inventory with photos as evidence before the tenancy starts and check the property at least once a quarter.
Glad to help. Most of my postings are idiotic ranting about cars or how much I hate football tournaments!
dave stew said:
You can get landlord's rent insurance cover if that worries you. It may be a better way to spend your money than £30pm on basically on line banking!
Try self management and see how you get on. You may get tenants who prove to be very 'needy' and drive you mad - you may not. Make sure you get a decent inventory with photos as evidence before the tenancy starts and check the property at least once a quarter.
Glad to help. Most of my postings are idiotic ranting about cars or how much I hate football tournaments!
Don't forget to register the deposit and hand the supplied deposit info to the tenant or you can be fined 3x the deposit for not doing so, I also believe now you need an EPC as well, also steer clear of Housing Benefit I got a demand back for 4 months rent back from Local Authority after the tenant was caught working and claiming.Try self management and see how you get on. You may get tenants who prove to be very 'needy' and drive you mad - you may not. Make sure you get a decent inventory with photos as evidence before the tenancy starts and check the property at least once a quarter.
Glad to help. Most of my postings are idiotic ranting about cars or how much I hate football tournaments!
sebdangerfield said:
I've never let a property before and took advice from the letting agent who explained the many services they offer to me. To find a tenant they charge 75% + vat of the first month's rent. They then charge 5% + vat per month thereafter for a rent collection fee or 10% + vat per month for a fully managed fee.
So that equates to 15.4% fully managed or 10.8% for just finding a tenant.I'd say that was on the expensive side.
sebdangerfield said:
Dave, thanks for your reply. The property's in Wolverhampton so it couldn't be further from the south easy, culturally rather than geographically!
It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
Have a look at www.landlordzone.co.uk and join the NLA.It's a new build flat so serviced by a maintenance company. It has a gledhill pulsacoil water heater which seems reliable and also electric wall heaters. I'll be leaving all white goods like fridge freezer, washer drier and oven, hob and extractor hood etc but these are reasonably reliable or cheap to replace or repair.
I'm tempted to self manage due to the proximity of the flat and relationship with neighbours. I'd take fully managed or rent collection services but it just seems a large amount of money for very little work.
I've just double checked and the rent collection service includes, apart from rent collection, the la sending up to two debt letters to the tenant informing them of their obligation to pay. It then stipulates that they will do no more and any legal matters are for me to deal with. I see a tenant who doesn't pay wise enough to not be afraid of a deb collection letter from the la, especially when most people would know they hold no legal power. To me, this service would cost about £30 per month, effectively to just collect the rent via direct debit and forward it to by the same method. This seems really high.
I'm edging toward managing myself but I'm looking for potential pitfalls too. The way I see it, if I take fully managed or self managed, as soon as te tenant fails to pay I'm on my own.
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