letting agent wants first months rent?

rent_and_buy

I have had a letting agent come to my house and when i asked him the fee he said they take the first months rent and that is for 12 months, but if the tennants leave after 6 months, they said i will have to pay again.

He said they set up a standing order after the first month, and then the tennant pays me direct, is this correct?

He also said he will do 3 monthly inspections and that he will do the references, i have spoken to a company about rent garantee cover and i will have it, but they said i needed a fully comprehensive reference.

Now it works out cheaper than other agents has they want money to find a tennant plus 10%, is this common or should i avoid this agent?

Ive just got the feeling the agent is doing it on the cheap and will not be really interested when hes had his money, and advice please?

m_13

It would appear that the agents are offering two different services.

If you pay 10% plus VAT each month then this is usually for a managed service where they collect the rent and the tenants contact them with any problems.

If you pay for a tenant finding service and then are paid direct then you would not normally have an ongoing management service. If your tenant leaves after 6 months then they will charge you the same fee to find another one.

I'm not sure how this agent can be offering a hybrid service where they don't manage the property but do three monthly inspections. Some agents do offer a service where they find the tenant and then collect the rent but don't manage the property and charge less than 10% plus VAT each month.

Are they regulated agents? ARLA is the main one but there are others that regulate agents. Has he mentioned how he will protect the tenant's deposit? This is now the law. Did he mention an EPC or an inventory?

The fees paid to an agent are 100% deductible from your profit. www.landlordzone.co.uk recommend that first time landlords use a professional regulated agent to avoid any problems.

clutton_2

get each LA to give you their contract and read it very carefully and compare them - see if they are a member of ARLA