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?
@Barbar_Pham
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)
Good luck
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.
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@Barbar_Pham
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
Best
Hey @Barbar_Pham,
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! 
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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.
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@Barbar_Pham . If you are comparing letting agents, remember to ask if they charge extra for;
Tenancy set-up
Inventory - Check in/out
Maintenance mark-up for any contracors they arrange
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@Barbar_Pham also worth considering alts like helloneighbour
See ‘Comparison of online letting agents including OpenRent’ the indep landlord
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.
Good luck
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