Agents commission on repairs rip off?

by Readers Question

4 years ago

Agents commission on repairs rip off?

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Agents commission on repairs rip off?

Agents commission on repairs rip off

My letting agents **name removed by moderator** have just admitted to me that they deduct 12.5% commission from contractors invoices for repairs that they arrange on my behalf.

This came to light as I was questioning why the quotes they get are always much higher than if I arrange the work myself. They claim that this cost is not passed onto the Landlords!

I already pay them a fee for managing the property so this feels like a rip off to me.

Is this common practise or should I change agents?



Comments

Mark Alexander

4 years ago

Yes this is common.

Yes it's a rip off.

Yes you should change agents.

Please see >>> http://www.property118.com/property-management-checklist/67891/

I removed the name of your agents as this is against our policy - please see >>> http://www.property118.com/what-property118-is-not/

If you want to name and shame your letting agents please see >>> http://www.allagents.co.uk/
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Nigel Fielden

4 years ago

I suspect this is common practice. However agents have a lot of maintenance work to offer and they should be able to negotiate good rates with tradesmen, so this should be offset by the commission leaving the landlord paying "normal" prices..

Personaly I don't feel it's a rip-off - agents have to be profitable if they are going to be there for us - but it should be declared up-front and not hidden.

Neil Woodhead

4 years ago

If Landlord has agreed in his Contract to pay a fee for arranging repairs, then there is no issue. However many Agents....including some Nationals..... charge this agreed fee and also....unknown to the Landlord..... take a commission from the contractor which in effect gives them a 20-25% fee. To get this commission the contractor inflates his invoice by the same amount.

It must be taken as the norm because many software systems build this into their package by not showing on Landlord statement or account

Adrian Jones

4 years ago

Reply to the comment left by "Nigel Fielden" at "20/08/2014 - 12:16":

I am sure agents negotiate good rates with tradesmen. In my experience this usually means an even bigger slice of the cake for them to keep.

With regard to the commission, what does the agreement between Landlord and agent say regarding work arranged by the latter?

PWD 64

4 years ago

Reply to the comment left by "Nigel Fielden" at "20/08/2014 - 12:16":

There is no incentive for the agent to negotiate cheaper rates with the contractors as the higher the cost, the more commission they get. Based on the eagerness of the agents staff to get “quotes for the work” I wouldn’t be surprised if the staff are also on some form on incentive scheme to maximise the use of these contractors.

Mark Alexander

4 years ago

If an agents terms are clear and that's what a landlord signs up for then that's fair.

The OP says his letting agency claim not to take commission but do. Now that's damn right unfair, if not fraudulent and it's certainly false advertising at the very least.
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Bill Williams

4 years ago

Reply to the comment left by "Mark Alexander" at "20/08/2014 - 14:55":

I got rid of an agent when I found that an incompetent contractor they were using was the son in law of a member of their staff. I also suspect that much of the work he did was phantom repairs.

4 years ago

Reply to the comment left by "Mark Alexander" at "20/08/2014 - 11:02":

I like the ides of a National Agents register, but I only see the Top / better performing

When I tried to put a name of a chain of agents in in South Wales, it came back Agents Not found


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