Standard practice for a managing agent?

PJD

Any job that they arrange for over £1,000 they charge an additional 10% + VAT management fee (from whatever the job costs), on top of the yearly management fee.

This strikes me as a conflict of interest, as, when obtaining quotations for work, the higher the quote, the more money they make.

Seems like a strange business model, when they're supposed to be acting on behalf of Leaseholders.

I have been told by our agent that this model is standard practice.

Is it?

theartfullodger

What do the terms of your agreement/lease whatever with them say about such matters please?? I can't read it from here..

PJD

theartfullodger wrote: »

What do the terms of your agreement/lease whatever with them say about such matters please?? I can't read it from here..

How would the terms of one single instance of an agreement indicate what the norm is?

theartfullodger

The norm is one thing (afaik my agent doesn't uplift.., but does add VaT** ) but what matters here is what you have already agreed to: For example if you have agreed to terms that state agent can add between 10 & 25% + VaT, terms you freely entered into, then you've a bit more of a problem than if your contract (no, not the AST)) or the T's & C's are silent on the matter.

Please let us know what they state.

Cheers!

** I self manage 3 properties & have one managed by an agent so am used to seeing repair bills and bills for replacement items: My agents prices are surprisingly reasonable. VaT must be added where lawfully required as my agent;s turnover is way over the VAT limit **

PJD

theartfullodger wrote: »

The norm is one thing (afaik my agent doesn't uplift.., but does add VaT** ) but what matters here is what you have already agreed to: For example if you have agreed to terms that state agent can add between 10 & 25% + VaT, terms you freely entered into, then you've a bit more of a problem than if your contract (no, not the AST)) or the T's & C's are silent on the matter.

Please let us know what they state.

Cheers!

** I self manage 3 properties & have one managed by an agent so am used to seeing repair bills and bills for replacement items: My agents prices are surprisingly reasonable. VaT must be added where lawfully required as my agent;s turnover is way over the VAT limit **

We haven't agreed to anything. Our agreement is up for discussion.

The MA is stating that the above is the norm. But I don't see how it can be, as it forms a conflict of interest.


Back to my original question then:


I would like to know if other people's MAs charge this in the same way please?

theartfullodger

PJD wrote: »

We haven't agreed to anything. Our agreement is up for discussion....

Really?? The "agreement" might be up for discussion but exists - they are already working for you. £5 to an agreed housing charity if they did not at some point send you their terms & conditions or otherwise establish the ground rules, which would likely be taken accepted. I would check !

And no, I'm not here the defend agents & am not one, never have been.

jennifernil

I take it we are talking about someone who manages a whole block of leasehold flats, rather than about an agent who manages one flat on behalf of an owner?

skintpaul

MA's work for the freeholder, not leaseholder.

Gonzo1987

skintpaul wrote: »

MA's work for the freeholder, not leaseholder.

Not if it's a RTM who is appointing the agent, or it may be share of freehold.