Typical Management Fees in London & other management questions

kernow1

Hello all!
Can anyone help me with this one:
I am considering approaching some people who want to rent their house out and are currently advertising through various London agencies including Foxtons.
At the moment the house is out of my budget, so it would be useful to know for negotiation's sake what the likely fees are that they would be charged by a management agency, both at the point of sale and throughout the tenancy?
The house is in the region of £3000 a month in rent.

Also, in order to allay fears and answer doubts before they arise, does anyone know the main reasons one would rent through an agency past the point of sale, and what possible headaches for the owner might occur by renting privately.

Thanks so much for your advice!

sooz

Do you mean what do London letting agents charge?
All the ones I've asked want 10% let only, with 8% renewal (& vat & various other charges they like to add on)

Full management is around 17% plus vat

Obviously everything is negotiable

One of the main reasons of letting through an agency is if you don't have the time or knowledge & experience to DIY.

kernow1

hi sooz, thanks for the message. when you say 10% for let only - what does that mean exactly? they take 10% of the annual rent, and what do you get in return?

sooz

Very little!!

Best to ask the agent in question.
Usually it involves advertising, showing the property, referencing (for which they charge the tenants), preparing an AST (extra charge to LL & tenant), inventory (extra charge to both again) etc. Don't forget the VAT

And when you come to renew, even though there is nothing for them to do if you go periodic, or a new AST to print (again extra charge) if you don't, that will be 8% of the annual rent + VAT.