BTL/agent fees
Discussion
With the new annual extension of lease agreement,same tenant,I get an invoice headed...
Commision 5% @ 6 months £xxxx pcm.
Then 6 months later I get another invoice,same as,which covers the remains 6 months of the lease.
So if annual rent was £10,000 ....I will be invoiced for total of £500 + vat.
Commision 5% @ 6 months £xxxx pcm.
Then 6 months later I get another invoice,same as,which covers the remains 6 months of the lease.
So if annual rent was £10,000 ....I will be invoiced for total of £500 + vat.
avinalarf said:
With the new annual extension of lease agreement,same tenant,I get an invoice headed...
Commision 5% @ 6 months £xxxx pcm.
Then 6 months later I get another invoice,same as,which covers the remains 6 months of the lease.
So if annual rent was £10,000 ....I will be invoiced for total of £500 + vat.
Sounds expensive especially if it's every 6 months ask them to renew for 12 months. Commision 5% @ 6 months £xxxx pcm.
Then 6 months later I get another invoice,same as,which covers the remains 6 months of the lease.
So if annual rent was £10,000 ....I will be invoiced for total of £500 + vat.
This gets on my tits massively.
I'm a landlord myself and don't charge my tenant renewal fees, I give them 6 months upto 2 year contracts if that's what they want. I go for 2 years max purely because it gives me options in 2 years and gives the tenant comfort they've got a house for 2 years.
I also rent the house I live in and we get ripped off every 6 months for renewal fees because the letting agent refuses to give a year long lease.
Its bloody lettings agents that are giving the industry a very bad name, most preople blame the landlord!.
I went to see a franchise lettings and estate agency (I fancied getting into the business)
They told me that
Management fees and tenant renewal fees are your "bread and butter income" Any sales of properties are just a bonus. They also forced teneant to take out their insurnce policy to insure the landlords white goods (if applicable)
I've got no objection to people earning a living but when lettings agency force people onto short tenancy contracts because the can fleece the landlord and the tenant every 6 months just takes the piss.
I could have made a fair few quid if I went down this business route but felt it was a con.
I'm a landlord myself and don't charge my tenant renewal fees, I give them 6 months upto 2 year contracts if that's what they want. I go for 2 years max purely because it gives me options in 2 years and gives the tenant comfort they've got a house for 2 years.
I also rent the house I live in and we get ripped off every 6 months for renewal fees because the letting agent refuses to give a year long lease.
Its bloody lettings agents that are giving the industry a very bad name, most preople blame the landlord!.
I went to see a franchise lettings and estate agency (I fancied getting into the business)
They told me that
Management fees and tenant renewal fees are your "bread and butter income" Any sales of properties are just a bonus. They also forced teneant to take out their insurnce policy to insure the landlords white goods (if applicable)
I've got no objection to people earning a living but when lettings agency force people onto short tenancy contracts because the can fleece the landlord and the tenant every 6 months just takes the piss.
I could have made a fair few quid if I went down this business route but felt it was a con.
Is there any reason you can't/don't want to let the AST become statutory periodic?
Cos that is a whopping fee to change the dates on a templated document and have it signed.
Are they perhaps updating Right to Rent, checking gas safe, electrical safety, updating references/credit checks, giving a rent guarantee?
If none of the above, much too expensive but you may have signed up to terms of business that permit them to dip into your pocket whenever they feel like it.
Cos that is a whopping fee to change the dates on a templated document and have it signed.
Are they perhaps updating Right to Rent, checking gas safe, electrical safety, updating references/credit checks, giving a rent guarantee?
If none of the above, much too expensive but you may have signed up to terms of business that permit them to dip into your pocket whenever they feel like it.
Thanks for all your comments.
I bought the property through this agent and believe they are well connected in the area,and they found me the tenant.
They are and independent,not part of a large group.
Therefore I have taken a pragmatic view in that should I need another tenant they would be well suited to find me one.
I do not resent paying for a decent service and always take a long view in my business dealings,however I was more interested to know what interest rates you pay.
Thing is, if people I deal with let me down or take advantage of my pragmatism I feel obliged to jump on them.
I bought the property through this agent and believe they are well connected in the area,and they found me the tenant.
They are and independent,not part of a large group.
Therefore I have taken a pragmatic view in that should I need another tenant they would be well suited to find me one.
I do not resent paying for a decent service and always take a long view in my business dealings,however I was more interested to know what interest rates you pay.
Thing is, if people I deal with let me down or take advantage of my pragmatism I feel obliged to jump on them.
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