Property maintenance fee structure

Landlord Discussion Repairs & Maintenance
1

I have built up some landlord contacts over the last few years who own property. Based on that I am looking to get into property maintenance for these landlords. This will involve me hopefully sub contracting a team of handymen along with other specific trades as and when required.

Basically I am trying to work out how to price for my service. So for example if I have a handyman on a day rate of £100 (an exaggerated figure) is it reasonable to ensure I charge for the work coming in at £125 or £150 or £200 etc a day?

I’d be interested to find out how letting agents or property maintenance companies structure their fees to ensure their supplied tradesmen get paid and they get paid for organising also

2

Do you know how much a tradesman charges now days . (I do ) Most landlords will get a tradesman direct, if they have any sense, to save a fee from yourself

3

I’m guessing this is a similar set up to companies such as Fantastic Services or Pimlico Plumbers that offer a “one stop shop” for property maintenance but actually just sub-contract out the work to individuals. The issue with this is it’s impossible to guarantee quality. I have tried these companies in the past but the quality of the work varied so much that it felt like a gamble, and an expensive one too. What value would you be bringing to this transaction apart from being a middle man? Unless there is compelling reason for having an intermediary, as Colin suggested, landlords are better off sourcing tradespeople themselves.

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4

Not only that .You have to pay the tradesmen ,what if you do not get paid.?

5

You need to do your sums catefully , especially if you think your turn over will exceed £84 K because VAT and MTD will be realities for you.

I’m a spark and never work for anybody other than directly for the Landlord.

Agents are , in general, disorganised, add margin to my fees and are extremely poor payers

I’m in Surrey and £100 might get you 1/2 day from a Labourer.

Most landlords avoid “middle men”

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6

As an experienced LL, I would have no need of you. I already know exactly who to contact for 99% of jobs I need trades for.

Are you not also opening yourself up to huge risks in terms of liability if things go wrong with a particular trade you supply?

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7

TBTH, you’re best off asking them then. Have you come up with this idea or are they asking you for help? If the latter, all well and good, but if the former then asking them directly will possibly give you a reality check.