so i am new to the landlord thing, because i am wet behind the ears i have signed up for the management service from my letting agent - when i am more familiar with everything i will probably switch to the cheaper service.
ANyhoo, my lettings agent cahrge 14% incl vat for management service. i thought this was bad, but then they are now asking for what appears to be an additional upfront free of £1817 - the invoice says that this is the “first instalment of letting fee”. The rent is is only £1300 so accordling to my calculations the first instalment of the letting fee is only £182 per month so I cannot understand what this is for and i have emailed and phoned them but havent heard from them
THe tenants are due to move in, and i have paid for an inventory charge and all sorts so its all systems go but was just wondering if anyone knows what this could be for? Or am i being scammed (they are apparently a reputable letting agent tho).
Sounds very odd. In a normal (and straightforward ) world, you would think that the agents would take their 14% fee from the monthly rent on a monthly basis and then pass on the remainder to you. Check the contract you signed with your agent or their published T&Cs.
I used an agent for my very first let. A well known and established national agent beginning with a C and ending with an S. Never again. Every let since then I have found and organised myself and without any drama.
I think you are being ripped off and you have not read the contract. Only let thru Openrent and no one else
that may be part of an arrangement fee , of 6 weeks rent,I feel you are in for a big shock
Some agents charge their fees up-front for the duration of a fixed term tenancy. You will probably find a clause in the contract stating that this is non-refundable, meaning that if the tenant they found does a runner, they will keep the fee.
Contracts are a negotiation, so read yours and argue about the points you don’t like. If you can’t agree, go elsewhere.
For fully management you do not have have pay up front and it’s always monthly payments.
You can challenge your estate agent and also you should able to change it.
Hi Nilesh. Thanks for your response. They have now agreed to split the management fee over 6 month . My plan is to cancel the management fee after a few months.
Thanks Prafula Thanks to the great advice on this site, I have managed to negotiate payments over 6 months
David thanks so much after reading your post I asked them to spread the cost, I asked for 12 months but they agreed to 6 months which isn’t too bad
Colin yes sound advice I will look into cancelling the management service and using openrent . Thanks so much to everybody, had really great advice from you all.
If you mean that you will cancel the management fee payments before the full cost is paid, the agent may find you in breach of contract and sue you.
They said I can cancel at any time. If I owe them or if they owe me they will refund the balance. I got that in writing. They, of course, are not refunding the lettings fee tho.