Letting agency fees - Am I being overcharged?

[garycat]

What are normal letting fees that an estate agent charges? They have already found us a tenant but for the first year, our agent wants monthly fees of...

10% + VAT - Let only
12.5% + VAT - Let + rent demand
15% + VAT - Full management

Are these rates standard?

[BoRED S2upid]

Seems a tad steep but it depends where in the country you are. Think I was paying 10% fully managed ie about £50 per month.

[garycat]

Near Slough. I've no problem with paying for a good-value service but it is going to be over £200 per month for them doing nothing.

[okgo]

higher than some, lower than some I reckon.

Foxtons was around 20% for managed.

[chris_w]

I'm paying 8% let only in London. It's also worth paying attention to (and haggling over) the subsequent years charges - I resented paying another 8% for a tenant who they found the previous year and got them down to 6% p/a after the first year.

[garycat]

The thing is - now that they have found some ideal tenants who want to move in at the weekend, how can I negotiate them down. If I refuse to sign and walk away everyone loses.

[okgo]

garycat said:

The thing is - now that they have found some ideal tenants who want to move in at the weekend, how can I negotiate them down. If I refuse to sign and walk away everyone loses.

Are you paying a mortgage on the place?

[bonsai]

Do you not think you should have negotiated before you signed the contract?

[M400 NBL]

How do they define fully managed?

What happens if there's a leaking tap? DO they call you (like your tenants could) to sort it out, or will they call a plumber (like your tenant could?

Or do they do something else to justify charging you 15%?

There are a lot of LA's in Slough, one of which i'm sure fully manages for either 7.5% or 10%. It's the one on Albert Street that was called Heritage but may have been bought out by a national LA.

I'm wondering if going for the rent collection is the best option, even if you don't live in the area.

[Wings]

garycat said:

What are normal letting fees that an estate agent charges? They have already found us a tenant but for the first year, our agent wants monthly fees of...

10% + VAT - Let only
12.5% + VAT - Let + rent demand
15% + VAT - Full management

Are these rates standard?

In 15 years as a landlord I have never paid any letting agents fees, I self manage and advertise in the local paper or/and use local council housing services.

Never too late to renegotiate with the letting agents, their fees to me being very on the high side (client never asked our fees).

[anonymous-user]

garycat said:

What are normal letting fees that an estate agent charges? They have already found us a tenant but for the first year, our agent wants monthly fees of...

10% + VAT - Let only
12.5% + VAT - Let + rent demand
15% + VAT - Full management

Are these rates standard?

If it is a let only why are they charging 10% + VAT on a monthly basis? The norm for a let only is a fixed 'finders fee' set up the tenancy and hand it over to you.

[DangerousMike]

if it makes you feel any better they do fk all for the tenants as well, despite the tenants having to pay quite a lot of money to them just to "sign up" (don't talk to me about £100 "contract re-drawing" fees when you renew your lease either).

[yellowbentines]

I do a bit of work for a letting agency, standard charge is 11%+VAT plus £150 tenant finder fee but they'll go as low as 7.5%+VAT plus £75 tenant finder for properties that will be easy to let and easy to manage. Let only is 40%+VAT of first months rent, nothing payable until a suitable tenant is secured.

There's loads of agents around now, the biggest/oldest aren't always the best, shop around and haggle.

[si72222]

I run a letting agency in Warrington and we charge £250 tenant finder fee and 5%pcm management. Theres always room to negotiate so you may as well give it a go, however you may have left it too late in this instance. If you've signed a contract with the LA, they have found you a tenant and they have informed you of this then they have probably got a clause in their T&C's that if you pull out now you are liable for their costs which will be everything from their fee to the tenants admin fee and probably the initial 6 mths management.

Give it a go the worst they can say is no, when they say that just mention your extensive property portfolio your thinking of getting them to manage and that might do the trick. If not its a lesson learnt for next time.

Si