Foxtons rental commission

Ginger_Winner

I'm going away for a year and need to rent my flat out. I'm hoping that there are some other landlords out there who could give me some advice with regards to commission rates.

I have a big flat to let in West London. I've received quotes from several Estate Agents but Foxtons have told me that they can get 40% more rental income than the others. The comission rate they have quoted me is 17% (11% + 6% management) + a £420 charge each time a new tennant is moved in.

I'm keen to know to what extent this commission rate is negotiable as it is substatially higher than the rates of other agents. I would also be keen to know anyones feedback on the service from Foxtons from a landlords perspective...

BitterAndTwisted

That rate is most definitely negotiable. Some chums of mine let their flat via Foxtons and they were charged two year's worth of commission at 10% on the £1k per month rent in advance on signature of the two-year lease. To a tenant who they did not carry out any credit-checks or took out any references on. Who then defaulted on the rent the month after moving in. They just went to court to get shot of him yesterday. Please, AVOID FOXTONS LIKE THE PLAGUE!

openshac

>>Foxtons have told me that they can get 40% more rental income than the others

They have said this purely to just get your business, same as they do for house sales.
Have a quick Google on Foxtons to get an unbiased view of their rental operations or for a biased one try Googling "Foxtons Rental Complaints"

MarketWatchNow

Most unlikely any agent could get 40% more - it's sales talk.

devotee

Foxtons are not known for negotiating on their fees. Try a different agent.

princeofpounds

They are talking BS.

I've lived in London for 6 years now, occupying a number of different rentals. I would quite often see weirdly-priced Foxtons rentals, presumably where they have promised an owner a high rate and have yet to manage the expectations down.

I would use Foxtons like any other large estate agency, Winkworths, KFH, whatever. I would go to them all and I would compare property across them all. There is no way that one could get me to pay a higher price than others - the only difference is that one of them might make me more likely to rent through them by being better at service; available, more flexible for viewings, actually listening to my specifications (most don't), not giving me the creepy hard sell.

In fact the one time I had a Foxton's viewing the agent trotted out so much BS about how I had to hurry to snap somewhere up that I walked away from further appointments.

Why oh why oh why people get suckered in by this 'we can achieve higher prices' malarkey on sales and lettings I don't know. Pure greed I guess. There is something called the internet now. People compare prices, it doesn't take much effort to walk into the agent over the street to check out their listings too.

may_fair

Ginger_Winner wrote: »

I'm going away for a year and need to rent my flat out. I'm hoping that there are some other landlords out there who could give me some advice with regards to commission rates.

I have a big flat to let in West London. I've received quotes from several Estate Agents but Foxtons have told me that they can get 40% more rental income than the others. The comission rate they have quoted me is 17% (11% + 6% management) + a £420 charge each time a new tennant is moved in.

I'm keen to know to what extent this commission rate is negotiable as it is substatially higher than the rates of other agents. I would also be keen to know anyones feedback on the service from Foxtons from a landlords perspective...

I'm a LL and my brother is a LL, both of us with flats in central London. Despite Foxtons' awful reputation, my brother uses them for tenant find as they do get results, i.e. fast find and good rent.* Their online property details are better than their competitors', and they are pushy beyond belief. (Now that you are on their database, they will contact you for years hence I assure you...)

No idea what their management side is like, but you can bet they will sting you for every last penny they can squeeze out of you, and there will be *surprise* fees galore. They probably won't do that brilliant a job at managing, but it'll probably be enough to comply - just - with the LL's legal obligations.

If you do go ahead with them, you need to approach it in the spirit of knowing that you are dealing with the devil. Go through the contract with a fine tooth comb and cross out/initial anything you don't agree with. Make sure that the commission is refundable if the tenancy ends early (either by T exercising a break clause or an early surrender).

My agent - a well-known London chain - charges me 8% for tenant find plus £150 admin charge for each new tenancy. I do my own management, but 6% is about standard for large London agents.

* Bear in mind that high rent isn't everything. Speed of tenant find - to reduce the void period - can be just as important (perhaps less so if you've plenty of time before you go away and this is just a one-off rental). Also, quality of tenant. For example, I may accept a T offering less rent than another offering more if the former a) wants to move in quickly, b) has better references/sounds more reliable/less trouble or likely to stay long term.

prudryden

Those fees are high for West London. I doubt Foxton's would be able to get 40% more in rental income. The going rates are widely published in West London.

kmmr

may_fair wrote: »

If you do go ahead with them, you need to approach it in the spirit of knowing that you are dealing with the devil. Go through the contract with a fine tooth comb and cross out/initial anything you don't agree with. Make sure that the commission is refundable if the tenancy ends early (either by T exercising a break clause or an early surrender).

+1 on this. They will charge you a lot for things like repairs and maintenance too, which you won't be able to challenge much if you are overseas and can't get your own workmen in.

That problem exists will all agents of course, but Foxtons will always be at the top end of any costs.

Personally I can't see how people can make any money with a managed let, especially if you have any kind of mortgage! Good luck, but go in with your eyes open on this.

westlondonbuyer

I would never, ever rent through Foxton's, either as a tenant or as a landlord.

They are the worst estate agents in London, by some considerable margin. Just google them and read some of the horrors they've perpetrated on people just like you.

mr_rush

Foxtons are the one agency I have always avoided, both when I was a tenant and more recently when I was looking for a place to buy in West London.