UK Landlord Forum / Life

Hi

This is my first post 🙂 I'm a recent landlord with a main career in marketing but renting out a flat in Cambridge for extra income. At the moment I'm with one of the main letting agents who charge 12% inc vat which seems steep considering my flat is quite new and there's nothing for them to do. I haven't got the time to do the management though. I recently heard about this company The Property Management People on the radio and their fees are £40 per month which would be a saving to me of £1000 a year. However it seems too good to be true, particularly as I haven't found anyone else who is below 12% in the Cambs area. Has anyone used these people or could recommend me any other lower cost agents to try?

Cheers
Alex

As you say, what do they do once the tenant is in?

Collect rent, phone you with a problem once the tenant phones them?

I'd have a look at what fees they are charging the tenants for all aspects of renting, some of them are eye watering.

12% is an Agent's list price. The people who pay list price are the people Agents love more than anyone. Full Management is money for old rope.

Thanks, I agree full management is money for old rope. What would you therefore advise in my position when all local management co's are 12%?

They all come in at that... wherever you might be. I've done full management only once (money for old rope) and ended up paying 6%... because they want the business, it being money for old rope.

I have not heard of that company you mention but there is No Agent who charge similar that I was considering but again do not know how they are.
I manage all my own properties now and the last agent I used was 6% - I just flat out told them to give me the lowest fee.
If you don't have the time, you have no choice really but to use some sort of agent. All you can do is read all the blurb they give down to the last letter and make an informed decision. Currently agent's fees are allowable expenses at least for taxation purposes.

So it sounds like these letting agents can be negotiated with, I didn't realise that. I'm with Haart which is obviously a big company so not sure if I can get them to go down, but I will contact them now to see...

Well I asked Haart and nothing doing. I guess I'll need to call some small local agents who may be flexible...

I have not had a good experience with Haart or any of the other High Street agents over the last several years to be honest, perhaps it's just my particular area. In fact from experience and reading about all the rules/regulations plus new legislation coming up, I'd be surprised to find any agents who would be as up to date as they need to in order to earn their actual fees and ensure Landlords and Tenants alike are fully compliant.

The saying that if you pay peanuts you should expect monkeys holds some water with Agents... but it doesn't necessarily imply the opposite. You can pay 10 pieces of gold and still get monkeys (Agents)... but maybe you just feel better (or worse) about it. At the moment you are with Haart and they will see you as a captive. You cannot manage yourself, you have no option. Probably wise to expect them to not budge. You are not a big player - there is no case to be made for any kind of economy of scale. Probably easiest to just bend over and take it.