Letting Agent fees - Are they negotiable?

manic

I am about to let out my flat & wanted to use a letting agent.

I have seen 2 agents already. For Full Management, one was asking 14% of rental income PLUS VAT, the other 15% PLUS VAT. The one at 14% said not negotiable, the other said maybe.

At these figures I will not be covering my costs (mortgage interest, managing agents fees for the leasehold of the flat etc.). What's more they ask for "one off setting up fee" and all sorts of other fees before they even take their cut of your rent.

Has anyone had any experience of negotiating a fee with letting agents? Would I be better off with a lesser service?

Any advice would be fantastic.

RHemmings

ts_aly2000 wrote:

Rent privately. With the antics of charging for breathing that letting agents invent, it far outweighs any potential problems.

If the property is near you then good, if not, then maybe an agent is appropriate.

Personally, my landlord and myself did away with ours at the latest signing. I also have a house in Cambridge that I rent out to students, which I manage myself.

Letting agents carry on as if you're so desparate for their services.

I can't understand why more landlords don't let their ASTs just continue on past the deadline into rolling mode, rather than drawing up a new contract every few months. Even if an agent is used, the new contract just seems like money down the drain to me.

How would individual landlords negotiate good prices for maintenance? Plumbing, electrical work, and the like. I think some EAs have "tame" workpeople that they call on regularly, and get a good price.

plane_boy2000

I use an agent, but only to find a tennat, credit check and reference them. I then do the managing myself which to date has been no hassle at all, and has saved me about £3K in management fees. The reality is that if anything did go wrong all the agent would do is call a blok from the yellow pages. I either may be able to fix it myself, or could call someone myself saving 15% plus VAT! Of course if you live miles away then this is different!

silvercar

I negotiated from 10% to 9% by offering him sole agency for one month. THis was on a non-management basis.

When you do sign a contract with an agency, check the details of fees for renewing the contract with the same tenant and if there is a fee if you sell the property to a (former) tenant. I negotiated heavily on these elements.

littlesaint

Hi, I'm a veteran of many a tenancy and I have found that the best relationship I have had with landlords have been when they have rented and managed themselves. Ones that use agents to find, so a reference check and draw up the contract, yet manage them selves have been relatively good. But as a tenant, I avoid properties rented and managed by an agency. They are a pain in the !!!! and cost us a lot of money in fees, as well as the landlord. If you want to try a agent I would reccommend the internet service halfapercent.