I imagine this is a topic that has been discussed in the past, but I can’t see it and I’m afraid I don’t know how to search.
I have recently learnt that my letting agent charges 20% commission to contractors if they are found by the agent. A few Google searches suggest that, although this percentage is at the high end, most agents charge in this way.
My main grievance relates to the total lack of transparency about this. Initially the agent in question denied there was any such charge. Subsequently, they used weasel words to convey the total untruth that any fee or commission would not affect the amount I ended up paying the contractor, whether directly or indirectly. By persevering, I finally established that £700 had been added to an invoice that would otherwise have been £3,500.
Surely the correct principle (ideally enshrined in law) should be that any fee or commission should be listed on the contractor’s invoice? The brief reference to a possible charge to contractors is buried deep in the verbiage of the agent’s lengthy contract and is also vague and evasive.
It seems to me that most agents are very keen to avoid landlords knowing that a fee or commission is charged, let alone that it is as high as this. Not good.
Yes, this is standard which is why many of us who have used fully managed lets will still put our own contractors in touch with the agent to avoid these fees.
Do you have a written contract with this letting agent? If so, what does it say about fees?
You could ask your agent where it’s list of fees is communicated to customers such as yourself. If they cannot respond, ask them for the address of the redress scheme that they must by law be a member of. Complain to their redress scheme.
I look on it as the agent is responsible and down to them , mine charge 10% but the contractors don’t charge so much due to regular work ,so it works out quite well all round
The agent in question is a Countrywide agent, incidentally.
The form of words that allows these charges is buried in Clause 14 of their contract, as follows: “Where for whatever reason we use a contractor or third party recommended by us then we may charge them a fee. The fee is paid to us and not to you and will usually, but not always, be deducted from monies owed to them when we settle the invoice on your behalf from funds held on account under Clause 7 (Client Bank account) above. This will not be reflected in your statement of account.”
You may well ask what cost £3,500! This was the charge for the total redecoration of a two-bedroom flat. Probably ridiculous. I’d been convalescing after a major operation, and I wasn’t fully focused when they gave me this quote. I’ve been with the agent in question for ten years (although the main person has changed recently), and I trusted them.
I am sometimes quite business-like and, if I’m honest, sometimes less so. In this case, after a catalogue of inefficiency and failure over the past few months (the length of the void period has been outrageous), I have now been very firm with the agent about a number of issues, with the result that the £700 commission has been revoked, and they are reducing their set-up fees for the new tenancy by 50% and giving me the first three months free of a management fee. Which is something.
just shows how much they were overcharging you. .All this “may” charge a fee in any contract means they “will”. I could say more about countrywide ,but had better hold my tongue
If they are part of ‘Propertymark’ this requires transparency of fees. For insurance there is 2024 legislation governing landlords/those collecting contributions I think
Ps depends what was done whether you were overcharged. Just prepping and repainting walls ceilings and woodwork shouldn’t normally cost 3.5k if was ok to start with and rooms not huge. If there was replastering needed, or removing many layers of old wallpaper or replacement of electrical fittings, or wasn’t clear and empty before the job these would all increase the cost.
But if you weren’t able to scrutinize and didn’t get multiple quotes you will likely be overcharged just the same as if you DIY manage and don’t scrutinize etc
(Shock horror agents (and freeholders or mgt cos) don’t get best value for property owners and get commissions- they will say this is for the expense of finding the contractor, you will say what are we paying the agent fees for then..)
The internet suggests, Colin, that quite a lot of people have negative things to say about Countrywide!
Meanwhile, David wrote: “Depends what was done whether you were overcharged. Just prepping and repainting walls ceilings and woodwork shouldn’t normally cost 3.5k if was ok to start with and rooms not huge.”
That is exactly what applied, and the flat was indeed “clear and empty”.
I undoubtedly took my eye badly off the ball, partly because I was preoccupied with other things. One doesn’t expect agents and contractors to be saints or charity workers, and, as you imply, in the real world one has to accept that they will put their interests above the client’s. But this case has been beyond the pale.
I have spared this thread the full history of the agent’s negligence, but since I belatedly focused on the horror of it all I have been very firm, and have made it clear that if there are any further slip-ups I will send the full narrative to the area manager. (Among other things the agent has agreed to get the windows repaired at no charge to me, since he had previously told me that this would be done as part of the decorator’s contract. This will apparently be most of a day’s work.)
I obviously put my mind to what was going on far too late. But better late than never, I suppose.
Well done. You had a verbal contract with agent including window repairs which were not done in the agreed price you paid. So now getting it done at no extra cost is far from being generous it is simply fulfilling a contract rather than you suing in small claims for services not delivered. They will still be making a hefty profit.
If things have been as bad as you imply sounds like you have been generous in letting the agent carry on with your business instead of just finding a new agent.
Your “Well done” is generous! I have belatedly been firm with them, but will not feel comfortable until the process is complete - deeds obviously being more important than words.
It has been very much touch and go whether I stayed with this agent, and indeed I entered into detailed discussions with another firm. However this is a complicated situation, with various ramifications; and in the end, by a very narrow margin, it seemed best to stay put, at least for the time being.
