Tennent finder fee

kazire

Hi I am going to be renting out my home thinking of different ways of managing the property, doing all myself, letting agent tennent find or monthly management from the letting agent I think I have ruled out the gaurenteed rent scheme.

I was wondering how much Is an average price off fees that should be charged for products as have looked on local agents sites but no information given about the % they want to take for different services

Anyone have any advice ???? I have a couple of letting agents comming out on Thursday to value my property and tell me what they can offer me are there any questions I should be asking them.

slopemaster

One good Q to ask is to see the contract they will expect you to sign with them.
Many agents will be very, very reluctant to give you a copy of this.
(and for good reason)
Get a copy ahead of making any decision, and read the smalll print

Kynthia

I wish I'd asked to see a copy of the contract that the tenant signs as it's ultimately your contract with the tenant. Does it have unreasonable conditions or miss out anything you would want in there?

I'd ask them how much deposit they take, as I'd recommend 1.5 months rent. I'd ask them if they know what a Statutory Periodic Tenancy was, what do they think 'quiet enjoyment' means, etc.

Look at your contract with them. How can you end your agreement with them if you aren't happy with their service as some say you can't keep you current tenants without continuing to pay them? Are there extra charges or does the management fee include check-ins, inspections, etc. Do they take meter readings and write to utility companies/council to advice of new tenants moving in? Do they have an out of hours number for tenant's emergencies? Is there a minimum monetary level of repairs they do on your behalf before getting your permission? Do you have a main contact person in their office? Do they assist with S21s/S8s and evictions if you need to evict the tenant?

I think it's great to find someone recommended. It's also helpful if they are near the property and aren't new to lettings. Also negotiate as I don't pay what they initially quote.

Kynthia

I hope you've done research on other things you need to do as it can be quite a shock otherwise. You need to get consent to let from your mortage company. Your building's insurer needs to know as it could invalidate it. You must declare the income to the HMRC even if you aren't making a profit in your eyes. You need a gas safety certificate and an EPC. When the property is between lets you'll be responsible for council tax. Don't forget to redirect your post. Be prepared to pay out for repairs or have a tenant pay rent late/not at all.

Good luck.

tbs624

Anyone can set themselves up in business as an LA - no training, qualifications etc required to do so. Ask whether the LA is , as a minimum, signed up to ARLA and check online whether they actually are.

LAs don't tend to have transparent pricing structures, whether for Ts or for client LLs so as someone has already said check through both the contract you would have with them and the tenancy agreement that they would be using. Get all costs confirmed in writing. Check how the LA would reference any potential T

Get a friend to call the LA up as a potential T, to see how they respond.

How good is your own knowledge of LL& T law? If you don't have a good grip on how things should be done, how will you know whether your LA is doing their job properly? Note btw that its "tenant" not "tennent"

Search on here for G_M's post for newbie LLs - much info and plently of relevant links.

kazire

Thank you all for your feed back! I have the gas certificate the consent to let and landlord insurance I need to get epc though can I negotiate the price that they place the property on at?

G_M

Read this post for more advice.

If you are going to be a landlord, learn to spell 'tenant'!.

Agents charge around one months rent for a simple 'tenant-find' service, or 8% - 15% for full managment - which can ean all sorts of things!

jee

I had to pay 3 weeks rent plus VAT for finding the tenant/credit check/ref check employer and previous LL. Then they added on a fee for an extra search which really annoyed me because I wasn't asked about the "extra".
I also made sure I got a copy of the contract and made a few ammendments.

Mrs_Z

If you decide to do it all yourself, there are many on-line lettings agents which will get your property onto Rightmove, Primelocation, etc web-sites.

When we first let out our property, we went with a local agent (tenant find only) - and paid I think 8% + vat on the yearly rent, this included tenancy agreements. The tenant then moved out after 6 months (!) - had I known I would have only done a 6 months tenancy.

From there on, we decided to have a go at advertising it ourselves and Upad was recommended by forum members here. We gave them a try and successfully let the flat. Saved me £££s !!!

ShannonE

If you choose to go down the route of using an agent the guys at E-stateagent charge £99 + VAT up front to find a tenant, the property team then manage the property for £50 pcm or 5% of the rent achieved, whichever is greater if you're still wondering about prices - hope this helps.

Best of luck!

Flyboy152

kazire wrote: »

Hi I am going to be renting out my home thinking of different ways of managing the property, doing all myself, letting agent tennent find or monthly management from the letting agent I think I have ruled out the gaurenteed rent scheme.

I was wondering how much Is an average price off fees that should be charged for products as have looked on local agents sites but no information given about the % they want to take for different services

Anyone have any advice ???? I have a couple of letting agents comming out on Thursday to value my property and tell me what they can offer me are there any questions I should be asking them.

Fees vary from agent to agent. It used to a standard ten per cent for introductions and up to fifteen for managed. But some agents are now charging an ongoing seven to ten per cent monthly fee. Be wary of these deals, because they are mostly offered throughout the tenancy. So, if your tenant is there for three years, you will have paid up to three times more than a standard introduction service.

Be wary of repeat fees as well. These are largely punitive and a waste of money. Negotiate with the agent before you sign a terms of business agreement with them. The fees tend to be about, on average, seven and a half per cent. That is money for literally doing nothing other than printing out a new tenancy agreement and getting the tenants to sign; something you can do yourself

Why have you discounted the guaranteed rental scheme. What is offered and how much are they asking?