Are my Letting agent fees too high?

by Readers Question

10:08 AM, 10th March 2016
About 5 years ago

Are my Letting agent fees too high?

Make Text Bigger
Are my Letting agent fees too high?

We have 3 properties with an agent for the last 12 years. We are generally ok with the service of the agent but now realise that the fees that we are paying for their services are too high, compared to other agents. Their site states 18% but we are paying 12%. Having phoned a few other local agents, who also advertise at 18%, we are finding fees for the same service at 8-9% and could be lower if we instruct an letting agent to look after all 3 properties.fees

We have raised the issue of fees with our current agent and his response was abrupt. He stated that if he offered us a lower price he would have to reduce the service that he offered and in some cases this would mean he would not be able to get good prices for repairs. Personally, I felt this was very unprofessional, but as we had been using this agent many years I asked him to take some time to review the fees.

To date I have not received a reply. I have 2 questions for the forum:

1. What is a reasonable level of fees for full management including collection of rent for the Reading, Berks area?
2. With tenants already in the properties how difficult is it to cut ties to either self manage or transfer to another agent?

Thank You.

Eudora

Comments

Eudora Burn

13:47 PM, 12th March 2016
About 5 years ago

Reply to the comment left by "Gillian Schifreen" at "12/03/2016 - 09:43":

Yes - I would be interested to understand how Letting Supermarket deal with Repairs? are there any landlords posting that can comment.
Thank You.

Mark Alexander

18:27 PM, 12th March 2016
About 5 years ago

Yes, tenant or inventory clerk reports the problem to the central office.

Landlord is informed and asked whether they want to deal with the matter themselves or for LS to get quotes.

Quotes are approved by landlord and work is done.

In the event of a crisis situation, eg burst pipe, they will use their initiative and act quickly if the landlord cannot be contacted.
.

Gillian Schifreen

18:37 PM, 12th March 2016
About 5 years ago

Reply to the comment left by "Mark Alexander" at "12/03/2016 - 18:27":

Sounds good. I now live in Portugal and hubby will be moving out once I've built him a house! So we may be looking to outsource our management. However responding quickly to problems is what we're known for locally and I don't want that to change.

Major John

10:43 AM, 13th March 2016
About 5 years ago

Their percentage is far from the most important factor. Ultimately, it's how much profit they make you, combined with how few headaches you get - critically, over the long term. I've had experience with over a dozen in London, Liverpool and Edinburgh - most being disorganised, incompetent or even deceitful on different levels. An agent that minimises voids and rent defaults; proactively tends to safety, legality, repair and maintenance; has your interests at heart and consequently communicates well (e.g. tenant changeovers; offering selfless advice); and whose financial reporting and remittances are professional and timely is worth twice the price of one with just a shopfront and slick talk. Quality is worth paying for so shop around and, when you find a good one, stick with them and help them by recommending them to others.

Iqbal Ahmed

11:53 AM, 13th March 2016
About 5 years ago

What services does your agent offer?

Typically I see the normal being 8-15% depending on the reputation and any extra additions (like guaranteed rent payments).

So it is high but then again agents generally are expensive. If all they do is just collect payments and create a contract every 12 months, maybe your better of doing it yourself and saving that 12%.

Puzzler

21:39 PM, 4th April 2016
About 5 years ago

Reply to the comment left by "Mark Alexander" at "12/03/2016 - 18:27":

Where does LS get their tradesmen from, do they have a list for the whole country?

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

5 Top UK Buy To Let Property Investment Hotspots