Advice Needed On Letting Agent Fee

Yasmine_2

Hello to everyone. We have rented out our flat since we moved overseas. The current tenancY will expire soon; and we are thinking to change the letting agent as we are dissatisfied with its service. We are now paying 10% comission + VAT for its letting and management service. I have recently done a research and found out one letting agent which only charges 7% commission for letting and management service. It sounds a good deal. However,the risk is that we are required to pay all the 7% of the gross rent for the period of the agreed tenancy term at the commencement of the tenancy, if the tenant leaves before the end of tenancy, we are not entitlled to reimbursement of any fees paid, but they will endeavour to let the flat for the remaining period without charge to us. The 7% commission includes all the administration fees. That means we do not need to pay £50 + VAT for tenancy agreement or renewal each time. This letting-only agent has a larger number of rental property and customers and better marketing campaign compared with the current one we are using.

Any advice would be much appreciated.

Christabel

Can you not let it out yourselves? I use a site called torent.co.uk to advertise for tenants. I also have a copy of the legal contract on my pc so just print it off each time, plus a copy of an application form for prospective new tenants with a space for referees which I always take up. When you have whittled it down is there someone back home who can then meet the prospective tenants and see if they are ok? As regards maintenance, do you have a handyman you can call on? Obviously ts more difficult when you are not in the same country but I do resent paying an agent if they are not earning their money.

clutton_2

i manage all my own properties, but, i would never recommend an overseas landlord go for self-management. i have heard of way too many horror stories. If you do not know what you are doing, it can cost you dear, very dear. If a clever tenant does not pay all of their rent, and you have not got an excellent AST, - it can take up to 9-10 months to get them out - you still have to pay your mortgage for all that time, in the unsettling knowledge that they may be wrecking your house.

The new 2004 Housing Act is going to make it more difficult for landlords who do not know the ropes. In April next year (its been put back yet again) landlords will no longer be able to keep tenants deposits.

If your tenant stops paying the rent and you are abroad, there is nothing whatsoever you personally can do about it . How stressful will that be for you ?

If there is a dispute about deposit return, how are you going to deal with that ?

You need much more than a handyman in my view - you legally need a CORGI gas engineer to do the Statutory inspection, every year; if you are a reasponsible landlord you will also need a qualified electrician (Part P regs); if you are self managing and your tenants cause anti-social behaviour in the street, how are you going to deal with it ? (you are responsible for your tenants behaviour in law).

Being a professional landlord, is actually far more onerous than folks imagine. I manage property for other landlords as well as my own, and many months i do little except receive the rent and pass it on to the landlords, its only when there is trouble, that a good agent will show you his/her worth.

The cheapest % is not necessarily the best agent. Ask them if you can talk to 3 of their landlords - ask them what happened when there was trouble.

IS this agent a member of a Professional Body ARLA for example, what sort of insurance does s/he carry ?

Why would anyone reputable want a whole years commission up front ? I would NEVER ask that of any of my landlords.

hope this has not sounded too negative, but, it really is fraught with difficulties if you are in the UK, let alone if you are abroad.

How many tenants will you be housing ? How many storeys is your house ?

Yasmine_2

Thanks for the replies.

Christabel, it is very hard for us to manage it ourselves.

Clutton, you have really good points. Next week, we will find out more when having a chat with that agent. Actually, we have a two-bedroom flat housing two tennants. We are really fed up with the current agent who has done little and upset the tennants.