Letting agents increasing rates after NI increase?

Jane

The agent obviously values you as a client!

The contract has to be honoured by both side, but it doesn’t mean it can’t be renegotiated.

The extra NI is going to be a cost to many agents, along with increases in minimum wage – salaries have risen immensely in recent years. Along with NEST pensions and sick pay (not recoverable from the government), it now costs about £35,000 as an absolute minimum to employ each full time person. Qualified staff command a lot more.

You can see why agents may be looking at price hikes!

Far better idea, just ditch the Letting Agent altogether – I’ve tried letting agents and without doubt they’re worse than an expensive waste of time and money – far less hassle, cheaper, quicker, easier to deal with tenants directly.

Reply to the comment left by Sangita Gupta at 05/12/2024 – 11:09
Such a shame you’ve had a poor experience, but most people don’t find that.

I am both landord and agent, but do not want to get involved in any aspect of managing properties, oher than at a strategic level. The staff in my agency deliver the work day to day (for which my own property companies pay a fee at the going rate).

I do not want to get drawn into the lives of tenants and their issues when it can be easily delegated.

Most landlords do not have the time or inclination to get involved. My agency has clients from all over the world; most have been with the business for 10+ years.

If the Agent is on a percentage then they automaticaly get an increase in fees when the rent goes up, they cant have it both ways.

Reply to the comment left by Graham Bowcock at 05/12/2024 – 15:14
“Such a shame you’ve had a poor experience, but most people don’t find that.”

Most people don’t find that? That is really an unsubstantiated claim from a person who very obviously has a vested interest.

The view I presented is not just my view, it is the view of every single landlord I’ve ever talked to who has tried letting agents.

But you can believe or present whatever you want, it doesn’t change what I know to be a fact.

Reply to the comment left by Sangita Gupta at 05/12/2024 – 16:35
You do realise that your opinion is not a fact, and no more valid than mine. If you want to do it yourself then fine, get on with it, but most landlords do not have the time, inclination or knowledge to self manage.

Do they want calls when they’re working, or on Sunday morning? No, of course they don’t.

The key thing is for landlords to vet their agents and make sure they are not only reguated and insured, but offer a good commercial package. Ask for recommendations locally. There are plenty of good guys out there. I get some really nice comments from clients about my staff.

Your limited experience, bad as it may have been, is not the same for everyone.

PS – we get bad clients too! Luckily we don’t keep them long. Anyone not wanting to comply can go elsewhere. We do not compromise on client quality.

Reply to the comment left by Sangita Gupta at 05/12/2024 – 16:35
Not my view, I have used letting agents in the past, all of which have been excellent. I’m sure there are duff-ones out there just like there are poor landlords and tenants. Horses for courses.

All of our properties are currently managed via agents.
We have self-managed in the past.
It is definitely a case of horses for courses and there are definitely good and bad agents out there. In fact, over the years we have had to sack a number of agents, often as a result of a small local agent that has been doing a good job getting taken over by a larger (often a corporate) outfit generally accompanied with a sudden plummeting in service levels.
Finding a good agent can be a bit hit and miss. Once we do we do tend to stick with them. My biggest concern right now is losing good agents due to them retiring from the game and thus having to start over again with either a new owner or an entirely new agent altogether. This is an experience that rarely goes absolutely entirely smoothly.
However, as Graham says, taking a call from a tenant with a problem on a Sunday morning is definitely something that I do not miss.