what do letting agents actually do for their monthly management fee?

MoneySavingMission

10-14% seems quite steep charge for processing direct debits and sorting council tax paperwork etc.
* What else is included?
* For a new let, is the maximum lease 6months?
* What happens if the letting agent cannot source a tenant?

G_M

MoneySavingMission wrote: »

10-14% seems quite steep charge for processing direct debits and sorting council tax paperwork etc.
* What else is included? It depends what is in the contract. Read it?
* For a new let, is the maximum lease 6months? No
* What happens if the letting agent cannot source a tenant? The landlord does not receive any rent.

If as I suspect you are a landlord, you have a lot to learn. Read this post.

MoneySavingMission

thanks for your reply but this is actually quite rude.
I have been a private landlord for the last 5 years with the same tenant. The area of letting agents and mgt fees is new hence why i've asked a question on this board. No need to be so rude. I have not signed any contracts with letting agents so i cannot refer to the contract. I have also been told by some that they only do 6month lease for initial tenant find hence why my query.

I hope any other responses do not constitute a personal attack!

MegaMiniMouse

I think letting agency fees are reasonable for absentee landlords, provided that the agency actually takes good care of the tenancy and the property

But if you are local, and ready to be pro-active, then you do not need an agency

You have had a good experience over the last five years - be prepared for a bit of a rocky ride until you find another quality tenant!

MMM

silvercar

But if you are local, and ready to be pro-active, then you do not need an agency

I agree. Once a tenant is in situ its just a question of whether you want to attend to maintenance issues, late rent payments and things like arranging gas certificates yourself or want the agency to do it.

Round my way you can get agents that will just find tenants for 10% and find + manage for 15%.

MoneySavingMission

thanks. I pay a top monthly landlord maintainance plan after being caught out a few times in the winter with emergency plumbers! Part of this plan includes gas certificates etc. I have managed the property well for 5 years with sitting tenant. Fear of unknown with a new tenant. The letting agent takes 100% of first month rent for finding and vetting tenant then its up to you if you want to pay 10-14% for management services.

Do you think a vetted tenant would be prepared to set up a standing order from your experience? I really don't want to have to chap the door once a month and ask for rent! I've been paid directly for 5 years so i've been spoilt with this.

MegaMiniMouse

TBH, I think you are almost as likely to be ripped off by a letting agent, as by a dodgy tenant

At the end of the day, you have to trust your own judgment - lots of people in the rental market don't have bank accounts, but that doesn't necessarily mean they will default

Being a landlord incurs all the usual business risks, there are no guarantees

You probably have to be able and willing to wait until a suitable tenant appears on the scene - if you cannot afford to have the property standing empty for a month or three, then your choices start to become more limited, and the risks increase

MMM

G_M

MoneySavingMission wrote: »

thanks for your reply but this is actually quite rude.
I have been a private landlord for the last 5 years with the same tenant. The area of letting agents and mgt fees is new hence why i've asked a question on this board. No need to be so rude. I have not signed any contracts with letting agents so i cannot refer to the contract. I have also been told by some that they only do 6month lease for initial tenant find hence why my query.

I hope any other responses do not constitute a personal attack!

???? 'personal attack'? Where? How?

Any landlord who needs to ask if a tenancy can be for longer than 6 months clearly has (significant?) gaps in his understanding of landlord tenant law.

That is not a personal attack - but a statement of fact.

After suggesting these gaps exist in you knowledge (as evidenced by your OP), I went on to point you in the direction of a huge range of sources of information you can use to fill the gaps.

Not just the 3 areas about which you asked, but the multitude of other areas you may need to learn about.

As for my advice to read the agent's contract, that remains good advice. They vary enourmously, as do the fees. Only by reading the different agents' contracts and/or discussing your requirements with them can you determine what they will do for you!

Stop being so sensitive and accept advice when given.

moromir

OP - to follow on from G_M's very good advice -

Contact several local letting agents and ask for copies of their brochures and price plans, they'll tell you what is included under each service.

Only you can decide whether they are worth it.

Good luck.

silvercar

MoneySavingMission wrote: »

Do you think a vetted tenant would be prepared to set up a standing order from your experience? I really don't want to have to chap the door once a month and ask for rent! I've been paid directly for 5 years so i've been spoilt with this.

I think most tenants would be happy to pay by standing order. failing that give them your bank account number and sort code and they can make payments direct to your bank account. The days of landlords visiting to collect cash are long gone.

G_M

silvercar wrote: »

...The days of landlords visiting to collect cash are long gone.

Except where HMRC/the mortgage lender etc are being kept in the dark...