UK Landlord Forum / Life

Hello, I have a house in another area to where I live so I rent it out and pay an agency to manage it. I have been paying 'full management' fees but, as I'm about to change tenants, I've taken the opportunity to review what I'm paying for. The letting agent gave me the following info:

The full management management package is: £300 set up fee, £45 tenancy deposit registration included in the set up and 9% monthly, the inventory cost is £130 (plus vat).
The other options are:
2) rent collection, £300 set up, 7% monthly, £130 inventory (plus Vat)
3) find tenant only; £600, £130 inventory (plus Vat).

I am thinking of changing to option 2 as it seems that the only advantage to full management is the tenancy deposit registration yet this means that I pay 2% more every month thereafter. I don't understand why I'd be charged a monthly increase overall if this benefit is only a one off action i.e. registration? Would it be easy and cost effective for me to do this registration myself and then pay 2% less monthly fee going forward?

Would anyone with experience of using a letting agent be able to answer my questions and advise me on what package would be best given my circumstances? (I see this property very much as an investment and want to maximise my income from it, yet cannot fully manage it myself given my circumstances.)

Many thanks!

A Rent Collection service is not equal to Full Management. Their description, which I'm going to assume you've quoted, could be lacking in detail. Maybe they think it's obvious, but maybe it isn't. It would not include, one expects, engaging contractors on your behalf etc..

If you are unable to manage it effectively yourself then you should have someone, preferably, local who can. The charges you are being given seem expensive, to me. Maybe it's time to get on the phone to a few other Agents and see what you can do.

I have only engaged an Agent for more than Tenant Find once - I paid 6%. I have engaged Agents on Tenant Find before, I paid £250 + VAT. Now I will use uPad Basic @ £45.

In my view - you should always do the Deposit Protection yourself regardless... insist on it. Not because it will save you money (although it might in the long-run) but so you can be sure it's 100% done correctly. Trusting an Agent (an Agent who requires no qualifications, no expertise and no training - and doesn't care about doing it right for you, as they're not liable for any penalties - you are) is inadvisable (in my world).

We've always used agents in the past because we had no choice and as soon as we did, we self managed - I know not everyone can, I also feel the fees you have are high perhaps it's time to shop around for lower fees if you wish to maximise your income.
However, there simply is no substitute to not informing yourself of the rules/regulation/legalities of being a Landlord. It's YOUR investment and if an agent makes a mistake, it can be very difficult to resolve at best and at worst you will be out of pocket by a lot of money! So I urge you to read up on being a Landlord, if nothing else, you will find tips on choosing an agent.
I couldn't agree more with regards to protecting the deposit yourself - again read up on the legal requirements.