Agents fees - renting my house

muskoka

I'm shortly going away for six months and have offered my house for rent through a local agent. Agent has found someone via RM to rent my home that I've very happy with. I just wanted to run the fees by other to get their thoughts. Agents fees are whole 1st months rent + of course I have to pay stuff like gas cert/performance cert/letting insurance + pay agent 10% of rent of rental fees for full management. I'm going abroad so have to have full management.
Fees from agent seem awfully high ? Prospective tenant and I have each others tel nos, but cant bypass agent - end of day hes done his work, though I've signed nothing covering his fees.
Is it too late to negoatiate do you think please? as in I didnt look into fees before I asked agent to take on hse. Any other advice anyone can give me pls?

Listerbelle

Which part of the country are you in?

Fees in this country (England) are high compared to elsewhere, and your negotiation skills are required!

theartfullodger

Those fees are unfair, unreasonable, high and extremely typical. You are stuffed, sorry.

You say you are going away for 6 months: you know the tenant does not have to leave @ end of tenancy & it will probably take a couple of months extra to get them out through the courts?

muskoka

I'm in the South East, and these tenants complete on their house purchase 2 days after I leave the UK. And highly unlikely I will need to go thru courts (not everybody is the pits). Anyone any ideas how I can negotiate - sounds silly, but thats why I'm asking

theartfullodger

Not the pits.

To request they leave you would use you legal right under section 21.

Tenant would be exercising their legal rights to stay under -iirc - ha 1988 & section 21.

Part of the great British tradition of respect for the law. You do respect the law aye?

Werdnal

Going away - will you be abroad? Then in that case you probably need to keep your agent, as if you are non-resident int he UK, you need someone here to pay your tax to HMRC on your rental income. You also need to provide your tenant with a valid postal address for someone in the UK - agent, relative etc, otherwise you cannot legally charge rent. Email and telephone number are not enough!

Failure to do either of the above means you are in the poo, and paying the additional fees might be worth avoiding the fines that HMRC might dump on you, or your tenant discovering that their rent is not actually payable!

Also, bear in mind the advice above - 6 months let, does not mean tenant has to leave after 6 months. If you are intending to move back then, make sure you have alternative accommmodation lined up for the time it may take to evict your tenant - could be 2-4 months on top of your original 6 month let! No - not everyone is the pits, but to end the tenancy, YOU cannot make anyone leave. The format for notice is that you issue a Section 21, giving 2 months notice, and at the end of it, the tenancy can continue until the tenant moves out, or you get a court possession order. Even the most amicable, friendly and reliable tenant is totally within their legal right to stay on after the fixed term, and the S21 notice, until you get a court order!

Sounds like you need to gen up on your LL responsibilities a little more. Read this:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

and all the links it contains. Particular interest if you are going be to living overseas is the HMRC Non-resident landlord link. If you fail to register someone to pay in the UK, HMRC can even come after your tenant to pay your tax for you!

muskoka

Thank you for your help. My exhubby (best friend) will be looking after all whilst I'm away. UK address, etc, etc. Will read up on all though

Turnbull2000

Have you informed the potential tenants that you'll want them evicted after 6 months?

muskoka

Yes, house was advertised strictly as 6 monthly tenancy. New tenants have sold, aiming to purchase within that time period. I wouldnt have a problem with them staying longer - provided they pay the rent anyway. Thank you

G_M

muskoka wrote: »

Yes, house was advertised strictly as 6 monthly tenancy. New tenants have sold, aiming to purchase within that time period. I wouldnt have a problem with them staying longer - provided they pay the rent anyway. Thank you

Then it is highly unlikely that their purchase date will conveniently fall in line with your return to the UK date.

You will need somewhere else to live when you come back while you wait for your tenants to leave.

Frankly, with the fees you are being charged by the agent, the other related tenancy costs, AND the risks associated with letting (damage, rent arrears) not to mention the tax, I don't see that a 6 month let is worthwhile.

6 months rental income will disappear to almost nothing, and in return you get stress, uncertainty and dependance on an agent....

(I hope you chose your agent carefully....)

Rental info.