Hello, I have a nice flat one bed in Central London. All these agents want 15% plus vat to do fully managed and I’m trying to figure out what I get for that after they find a tenant and do the paperwork. It ends up being quite a lot of money over the course of a few years.. The only thing I can think is they can find higher end clients maybe? The sales pitch I got today is that they have twice the work because of renters rights act and they aren’t increasing above 15% despite this.
I’m going to be a first time landlord as we moved out the one bed. I just had it completely refurbished and fixed up. I’m not sure what issues a Tennant may have and I think I have to pay for works anyway. I’m seriously considering this site if it cuts out a monthly leech of 15% plus vat. I also live nearby in my new property anyway. Anyone care to give me a push towards trying via openrent?
15% plus vat - you should pay 8-12% max -shop around. I’ve seen quotes of 6-8% plus vat. They all advertise in same place rightmove and get 90% of tenants from web enquiries so unlikely they get a better quality of tenant tbh
OR don’t manage tenancies so not a replacement for full lettings service you have to manage yourself. Even using an agency you have to check they’ve done it all as a Minister found out no long ago…
you can always use an agent to find someone for a fixed fee then do the rest/manage yourself via OR
You are basically paying for their time and knowledge doing viewings referencing pro photos and sifting out the unsuitables plus ensuring you do all the legally required stuff (Gas safety cert etc) and setting up the tenancy
On things like gas safety and eicr they will have contractors and take a commission just like OR. For emergency stuff an add on landlord insurance or bg home serve are alternatives. For eviction legal cover on landlord insurance ditto.
If you want to be totally hands off and not deal with tenants at all a lettings agent may be ok but you still have to pay when repair needed. If you have the time to deal with tenants and repairs and do all the stuff to stay legal (more now due to RRA) OR may be for you. If a boiler breaks down in winter you are on a timescale to get fixed you can’t leave without heating so might pay more whereas if your own home you can take time not pay emergency rates. I let out a refurbed place had a leak to flat downstairs on Sunday evening 1 day after tenant moved in (not his fault)..
Maybe join nrla (or others) do LL training youll get more an idea what’s involved
Also a discount for nrla members for agents who are part of leaders group (includes Acorn and others)
Hi David thank you for this very helpful reply. I live ten minutes walking distance from the flat anyway and I have upgraded everything imaginable can’t see anything breaking down. Repair wise I have been repairing that flat for the last 13 years. I also have a flexible job, don’t need to go to the office and most of the time I’m floating around the area. I think I’m going to have a go at this myself and cut the agent out completely.
I’d strongly advise some training and reading round what a LL has to do (there’s lots of guidance out there). It’s not only getting stuff repaired you need to know legal reqs on everything from health and safety to LL admin
Eg there’s an info.leaflet to serve to tenants before 1st May about the RRA. Don’t do it youll be fined 7000 quid.
Accept different amount above advertised price - another fine.
Rental bidding- another fine
don’t join the LL database - another fine
Accept rent in advance - another fine
Rent increases automatically above cpi - another fine
rent increase of any sort - tenant can challenge for £47. doesn’t pay increase till tribunal decides which can take 6 months plus they don’t pay increase backdated so basically get no increase for 6 months for cost of £47.
Want to evict if tensnts a problem- most reasons are 4 month notice then if they don’t move out can take many months for court hearings and bailiffs. Current s21 no fault takes people 6-12 month new rules where court has to consider evidence from LL likely to take longer
etc.
Good place for advice is ‘the independent landlord’ blog
I’ve sent you an email with some introductory information about using OpenRent. If you do need some guidance with using the site, do reply to that email!
It doesnt sound too high to me and I suspect that most agencies charging less will soon be increasing their prices anyway.
I wouldnt consider self managing without thoroughly learning the business, especially the regulations. The RRA is a game changer in terms of risk to landlords.
In my view, all the advice given above is sound. If you are prepared to get fully up to speed on all the legislation/regulations for landlords, local council stipulations on rentals and the changes due to RRA then you could put yourself in a good position to self manage. Given your proximity to your rental property and availability to deal with tenant enquiries/issues, it should be a winning formula. I was in your shoes 18 years ago and used a well known national agency to find my first tenant. Fees were expensive and proved to be wasted when the first time I asked them to deal with a tenant caused issue, they stepped aside. I’ve been successfully self managing ever since after putting in the hard graft of learning. Moreover, having that personal relationship with every tenant I have had over the years has been conducive to mostly issue free tenancies. They’ll never be 100% issue free as you’re dealing with people, not robots. The more you help your tenants understand what being a tenant entails and how you can or are prepared to help them, the more likely you’ll have a good outcome - but its not a guarantee.
The Openrent system takes care of most of the paperwork requirements and are always very helpful. This forum full of tips too!
Join NRLA for extra resources.
Choose your tenant from gut feeling, look for cooperative, efficient, can afford. Resist sob stories. Treat tenant like you would want to be treated. Think you will be great
I used an agent for years. Then started to notice what they were suppose to do they weren’t.
Tenants complained to them about faults, were never passed on. Landlord legal obligations weren’t being carried out. Gas inspections went past deadlines and then when they were carried out I was surprised at the cost.
In the end, sacked the management company and sued them for breach of contract.
But be warned you will need to update the required training. But its worth it as ive saved so much money.
Or of course there is open rent, which I also use, who looks after some of my properties
In my pretty extensive experience (between 6 & 8 flats for more than 20 yrs) there is not an agent out there who does as good a job, at any price, as Openrent.
I believe that part of this outperformance by Open rent in comparison to agents is structural. For example when dealing with tenants I have not yet met an agent who does not exude phony gravitas. This extends to trying to project authority with tenants through distance and convention - they routinely mess tenants around. By comparison using Openrent you will meet the proposed tenants and be able to assess them qualitatively. This not to be confused with having them assessed quantitatively.
Another key consideration will be the comparatively up-to-date nature of Openrent’s admin - this by dint of the volume of contracts and agreements Openrent handle.
In sum: don’t hesitate - Openrent or an agent? Agents are not at the races….
I have a different view . I use an agent to filter the tenants . I interview a short list , choose one and agent handles the paperwork. I prefer to TALK to the agent with my views . Used same agent for 20 years or so. My agent is at the races
Exceptional! And judging by the commentary on this thread I am not the only person who thinks so. Have you tried the alternative of writing the copy, placing the listing and handling the responses?
Think there’s pros and con but OR vs full service from an agent is comparing apples vs pears
OR won’t do any sifting, property maintenance/management or dealing with tenants and there are lots of unfavorable views here about the subcontractors they use for EICRs, GSRs etc. Doing all that yourself and dealing with the tenants will be better than OR who don’t do it. And maybe better than many agents (whose homework you still have to check up on) but takes LL time and effort to learn all the rules and luck to find good reliable trades. OR are difficult to deal with - no telephone or email contact to save £ - but cheaper than an agent. Agents at least have a tel.
OR are like Aldi, agents are like the small cornershop which has everything and is more convenient. OR cheaper but not always as good service exactly because their scale means you are just another LL. BG homeserve offer a big brand name but it’s doubtful their gas engineers paid less will be better than an independent.
Some details: I have had one serious default - made good through the courts, around £11k was the total - with an OR tenant. It was a bizarre case where I ended up as LL (even though having signed nothing she was closer to a squatter) to the tenant’s violent and psychotic ex wife. He legged it when she found out where he lived and moved in. That’s it and it’s more than 10yrs since. In the meantime not so much as a blank/void month. I find Openrent transparent, unpretentious and remarkably good value. Such good value that I don’t mind passing it on by being prompt and generous with the likes of repairs and maintenance. All my tenants have my telephone number but they do not bother me.
Some of OR’s systems are clunky, if as I do, you have six gas certs or EPCs etc the jobs have to be offered and arranged individually. Because of this I list one and offer the respondent the others when we have established contact. In this I am not comfortable denying OR their “touch”.
In sum no shares; it’s a matter of praise where it is due. I have described my comparative experience with agents: pretention a gogo, phony gravitas, the disadvantage of seeing the market through their lens, their fees, very often their delinquency with regulation.
The discrepancy is so wide you have to ask yourself why any tenant would use an agent when Openrent is available to them. Thinking about it perhaps ask yourself do you want tenants who need an agent to represent them?
I haven’t. For me it ain’t broke so doesn’t need fixing. Openrent absolutely perform for me.
The listing I am handling right now is a good example. I listed it the day before the existing tenant moved out, Monday this week. I have had 13 requests to view and provisionally agreed a lease with a sound individual this morning, he was the first to view.
All that said I am pleased to hear OR have some competition to keep them up to their marks…
